‘’Can’t I do what a property manager does for me? Why do I need them?’’ While it’s true that you could handle some of their responsibilities, the job can come with specific responsibilities you might not be prepared for, and they may not even be worth the trouble on your side. Don’t try to be a one-man show and do everything by yourself. Property management is a rapidly growing industry, and more and more landlords are turning to property managers to aid them manage their rental properties more efficiently.
Did we catch your interest? Keep reading!
Provide advice on the market
Being an investor, you are most probably keeping an eye on the local rental market and are aware of what similar properties are renting for. However, every perfect property is different and has different renter appeals. Knowing the subtle differences and how to leverage them is where a property manager fits in.
We all know that the market is forever shifting and keeping up with it is a sport in itself. A skilled property manager will be able to keep track of your property’s worth and suggest when to increase the advertised rent in line with the local market. This kind of support is pivotal in making sure you are getting the most out of your investment, and that your business remains as profitable as possible.
When you are a landlord, this comes with a lot of legal responsibilities which, unfortunately, also means a lot of paperwork. Fishing out your certificates and putting together your legal documents isn’t exactly a thrilling experience. However, although it may not be the most glamorous part of the job, having a property manager to do it for you, will seriously help you out when it comes to potential disputes, claims, and disagreements.
Property managers understand complex laws and regulations and are skilled in drafting the documents you need properly and efficiently. They can write everything you want, from lease agreements, eviction notices, inspection worksheets, and rental applications to deeds and tax forms.
Bookkeeping and accounting
Unless you’re an accountant yourself, you should leave this one in the hands of a pro. Certain property management terminology is typically used alongside accounting, easy to get lost into if you’re not a field expert. Another thing you should think of is that some accounting software can be costly and it’s better to outsource it someone that already owns it.
This can’t be efficiently done by an average landlord since there are a lot of things that can go wrong if you are not attentive or if you don’t have complex knowledge of the laws and regulations.
Property managers can handle your taxes by keeping detailed, organized records of transactions related to the property management business, together with all the tax-deduction bills. They can also help you file taxes faster and not miss out on any credits or deductions available to your business.
It’s best to consult with your property manager and refer to the IRS website for specific guidance on how to report income and claim deductions properly.
Market your property
One of the most significant responsibilities of a property manager is to limit vacancy time. Therefore, the managers use their extensive local market knowledge to create targeted advertising. Thus, helping to secure a qualified tenant faster than if the owner had done everything alone.
They utilize a diverse set of platforms that differ from your average property advertising websites like Craigslist, MLS, or popular rental sites. They have access to local community boards that expose listings to a wide group of prospects, specific authenticated websites, and networking groups. In fact, many property managers have a pool of renters to choose from, as opposed to the normal system of waiting for renters to come to you.
You have to ask yourself how much time and money you are willing to spend to manage everything by yourself, without the help of a professional. Managing your property may seem appealing at first since it looks like you get to keep all the rent money, but in reality, it’s not that ideal.
A property manager allows you to spend your time doing what you want and lets you ignore any small problems that tenants want to be fixed. Avoid paperwork, phone calls, evictions, and rent collection, and choose to hire a property manager for more efficient handling. Leverage their knowledge and skills, saving yourself time and money, and making data-driven decisions about your property, without needing to worry about any potential issues arising.
Hiring a property manager is a decision you can’t go wrong with, especially in the long run. They offer effective management, expertise and experience, and legal compliance, which can benefit your business a lot.
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