When you take on investment property, you have two options. You either self-manage the property or you have to hire someone to do it for you. Low and behold, the property manager is born!
So, what exactly are property managers? In short, they take the place of the property owner in a variety of ways. Now, this doesn't mean that you as the property owner, are void of responsibility. However, property managers do handle a lot.
So now for the long answer. Property management is no small feat and it's important to understand what the responsibilities of your property manager are so you're both on the same page.
The good news is if you keep reading you'll find the ultimate guide containing everything you need to know about your property manager. In the event you want to hire one, we'll give you some tips on that, too. You're welcome.
Finding and Securing Ideal Tenants
What good is an investment property without tenants?
Finding tenants can seem like a daunting task, but all it takes is the right marketing strategy. There are so many ways to obtain tenants: word of mouth, social media advertising, and the good old sign in the yard, just to name a few.
Did you know that a "For Rent" sign in the yard has proven to be one of the most effective advertising methods? Sometimes a tried and true method prevails over technology.
It is also important to note that the property manager must orchestrate the timeline in which current tenants exit and new tenants move in.
This includes a variety of things, the most simple being collecting rent from the tenants on a set date. It is more complex than that, however. The manager also must set the rate at which the rent will be collected. If done improperly, the investment property will not be profitable.
Taking it one step further, the property manager is also an investment manager. To maintain the desired profit margin, all expenses must be monitored.
An example of this could, in some cases, be something as simple as utilities if they are included in monthly rent. If utilities are higher than projected, rent may need to be increased.
Resolving Potential Problems
This one is pretty self-explanatory. In short, complaint and repair management and maintaining proper living conditions.
If something breaks, the manager arranges to have it repaired. If a tenant has any type of complaint, the manager resolves the issue promptly and professionally.
Keeping Updated With Rental Requirements
When you manage a rental property, it is imperative that you follow guidelines set by the state where you are located. The American Apartment Owners Association has a user-friendly resource to find your state's requirements.
Requirements can be a wide range of things, but all must be covered, nonetheless.
For example, in the state of Washington, if multiple families live in one rental unit, the property manager is responsible for providing trash pick-up. However, if only one family occupies the unit, the manager is not required to provide trash pick-up.
Property Managers: A Smart Investment
If you've decided that hiring property managers for your investment properties is a good fit for you, your next step is finding property management companies near you!
In the Seattle area? Call or message Next Brick Property Management to discuss what we can do for your individual property management needs!