It is relatively easy for landlords to be overwhelmed by the day-to-day tasks of running their rental business. Between the never-ending maintenance checklists and staying on top of overhead costs, the work of a landlord never seems to be at an end.
This is why a large number of real estate investors are pivoting to property managers for help with their business.
Let’s take a look at how a modern property manager can improve your business.
Prioritizing Communication
Property management is a people-oriented job that places communication above everything else. Your property manager will keep the lines of communication open and clear with tenants. Emergency contacts will be shared with tenants in case of urgent repairs that are needed late at night or over the weekend.
Moreover, property managers can address all concerns that are raised in a timely manner. You should also expect your property manager to check in with the tenant every now and then. This leads to greater transparency and accountability.
Tenant Screening
It’s not always straightforward to assess a tenant based on a few phone calls or in-person meetings. Even the most honest-looking candidates can make your life difficult. This is why property managers always utilize the best tenant screening methods that combine credit checks with criminal backgrounds.
This increases your chance of signing on with a reliable and responsible tenant who not only takes care of the property but also pays the rent on time. Tenants screening can be a lot of work, but a property manager can handle this for you.
Decrease Occupancy Rates
Property managers are required to improve the financial return on your rental unit. It is in their best interests to make sure that the rental unit is occupied with reliable tenants as quickly as possible.
They will list the property on rental websites and use the best marketing strategies to find well-qualified tenants.
They will develop a system that will automate processes such as security deposits and paperwork.
Align the Rental Business with Local Laws
A property manager takes the requisite steps to make a rental unit suitable for habitation. There are a ton of regulations that must be followed at the federal, state, and local levels, including fair housing regulations and the ADA. This means that they will provide, at a minimum:
● Strong windows and doors
● Safe drinking water
● Secure locks
It is the landlord’s responsibility to protect treats from criminal activity using Safety measures such as:
● Gas safety inspections
● Carbon monoxide detector
● Smoke and heat detectors
Property managers will keep the property fully aligned with the latest safety regulations.
Contractor Relationships
A huge part of a property manager's job is to maintain working relationships with contractors, maintenance workers, tradespeople, and vendors. This can be very difficult for landlords to do on their own.
A property manager also commands the best price for the best work because they usually provide contractors with ongoing work from different projects.
Improving the Bottom Line
Of course, this is the most important part of a property manager's role: improving the investor’s bottom line. They keep their eyes and ears on the ground to learn more about the demands and market conditions for the local area. This will allow them to set an accurate rental price of the unit that will encourage more tenants to rent the property.
They also provide guidance on how to maximize the rental income for the property, such as home decor changes or even accounting advice.
Drafting an Airtight Lease Agreement
The lease agreement with tenants is a legally binding contract between landlords and their tenants. The agreement protests the landlord and sets out legal obligations that are expected of tenants. It sets out the rental price, due date, and penalties for late payment. The tenancy agreement is used to prevent potential disputes from arising in the future.
This is why it is important to have a tenancy agreement that is favorable to the landlord. The documents should contain standard items such as the tenancy start date, end date, rental amount, and relevant notice periods. It will also contain provisions for what tenants are allowed or disallowed to do at the property, such as pet policies, smoking, etc. According to these Chicago property managers, interested tenants will not be allowed to stay at the property until they sign and agree to everything in the document.
Wrapping Up
The right property manager can do much more to boost your real estate business and ensure that your occupancy rates are maximized at all times. We strongly suggest working with property managers to streamline your business and increase your revenue.
We hope this was informative.
If you haven’t hired a property manager already, get in touch with us to learn more about our services and how an experienced property manager can share some of your burdens.