Liz Williams, SVN | Velocity Commercial Real Estate
A good property manager allows investors, owners & board of directors to get a good night’s sleep without the headache of a phone call to fix a toilet at 3:00 am. But, what else do we really do? Let’s explore the top 6 reasons you need to hire a property manager, like yesterday!
- Contractor relationships save your bottom line
A great management firm vets contractors and has a seasoned eye to look for the best bids from reputable contractors who are licensed, bonded, and insured. Outside services, combined with an on-call maintenance staff allow for routine inspections, and remedy issues before they turn into a major problems. This means happier owners and tenants and fewer high-priced emergency repair bills.
- Increasing revenue with good quality tenants
Tenant screening protects your revenue stream. A property manager knows how to spot red flags on applications and identify applicants who are likely not to pay on time or damage your property. Screening tools and advanced technology allow managers to evaluate hundreds of applicants thoroughly and effectively. Saving you time!
- Maximize occupancy/Reduce Vacancy
Property managers value the importance of short vacancy terms. Managers offer owners access to proven marketing strategies to capture the highest return on investment and partner with their own commercial real estate firms to fill vacancies quickly.
- Avoiding legal pitfalls
Potential costs on a formal eviction can be astronomical and financially crippling. Landlordology reports an average of $5,350 per eviction! This cost includes lost rents, legal expenses, repairs, locksmith, and cleaning fees.
A skilled manager understands landlord-tenant laws governing resident rights, eviction processes, and safety. A few other potential legal issues include:
- Rent collection and applicable late fees
- Leasing disclosures (such as lead based paint)
- Licenses and permits
- Notification and access for inspections
- Seamless Accounting
A property manager communicates annual budgeting information on taxes, insurance, projected expenses, and investment opportunities for owners’ consideration. Owners receive monthly statements regarding income, maintenance requests, and expenses. The manager assumes responsibility for enforcing establishing and strict payment guidelines so owners don’t waste their time chasing down rent collections each month.
- Increased property values
Preventative maintenance schedules and inspections are critical to maintain and increase property values. Property managers are in regular communication with owners about proactive steps to improve the property to maximize the longevity of the asset/investment.