Self managing your income generating property is even more beneficial to your pocket if you are able to commit enough time and have the correct skills at hand. But what happens when you don’t have the time or the skills, or when you simple want to expand your property portfolio.
Most of us don’t have the adequate time or skills to manage our investments to the best of it’s abilities. Not to mention the desire to increase our property portfolios, we find ourself working harder with even less time at hand. It is here that you need 10 Reasons to Hire a Property Manager, to save you time, money and manage your investment to the best of the professional’s ability.
1.Setting the correct rental rate
Setting the correct rental rate is more than simply going through your classifieds and seeing what your neighbourhood is charging. This method of research will give you a very good ballpark figure, but not a rental rate specific to your property. Keep in mind that one property is not the same as another. Is the space new or old, revamp or dilapidated. How far up the hill or down the valley are you. All these factors wil influence your rental rate. Finding the best rental rate for the least amount of vacancies are more of a delicate balance than we might think.
For more in depth articles on rental rates, please read…
2. Collecting and depositing monthly rent payments
Any one who ever worked in a billing department can tell you getting money out of those who owe you can be more time consuming that ever imagined. Property managers and their property management companies has methods of making these rental payment happen in full and on time.
I myself manage a rental property of my own, and this is one of the best benefits a property management company can offer you:)
You will find this service particularly important if time is of any concern, especially if you have more than one income generating property.
3. Marketing and Advertising your investment property
Any empty months are a direct money lost and can have severe consequences on your cashflow. It is for this reason that successful marketing and advertising of your property will lead to smaller periods of vacancies, enabling your cashflow to stay above water, ensuring your ownership of the property in the long run. Property managers are skilled individuals that know where to find your tenants, how to market and advertise for the best and quickest results.
If you are unsure, go work out the math it will cost you if your property stands open for 2-3 months every year over a 5 year period. The results I’m sure will convince you to use a property management company.
4. Finding quality tenants
You don’t have to look far, to hear about the cost of what a bad tenants can be. Late payments will be a small concern when considering how they can break your property down to the ground. Making their small deposit not enough for a cleaning or paint job, never mind the fixtures that are broken or gone:/
Finding a good quality tenant is essential to having a happy tenant and landlord relationship. Property managers know what to look for in such a potential candidate. They not only have years of experience, but they will also handle all the background checks and references. Ensuring you receive the best tenant your property can attract.
5. Managing tenants
Tenants, good or bad will take more time from you than you ever thought possible. It is for this very reason that you will love your property manager the most. Because it is the property manager’s responsibility to handle all tenants matters, the concerns and their complaints, the emergency issues and routine inspections
Trust me there can be many complaints, you don’t want your ears filled with them.
6. Managing Vendor Relationships
Property managers have a list of skilled companies to call for all kinds of property related matters, the tradesmen, the contractor, the suppliers. This ready to use list of theirs are invaluable to any landlord, simply because they will get the matter resolved in the time stipulated in your contract at the best cost for quality value.
7. They know the property and tenant laws
One needs to be very careful not cross the law accidentally when it comes to renting out your property. The law in South Africa is written to be fare of both the landlord as well as the tenants, granted the landlord never overstep their bounds. Overstepping, even accidentally, can lead to massive eviction troubles, that will in the long run make you regret getting involved in income generating property. Understanding what you may and may not is a very complicated matter that will take far more of your time than you will be willing to give. Property managers know the law, they know how far they can push and how far to let leancy go. An absolute must for anyone that’s not a property lawyer.
For more in depth articles on the legal matters, please read…
8. Enabling you to invests in geographically distant properties
Managing your own investment properties forces you to only buy properties close to your current location. Property Management Companies allows you the opportunity to buy any good investment, no matter the geographical location of either.
9. Maximizing the profitability of your time
There is never enough time, time to work, time to play, time to spend with our loved once. By employing a property management company you are opening your time to be used as you would prefer.
10. Maximizing the profitability of your money
Property Management companies usually takes a small % (5-8%) of your monthly rental rate for their services. This small payment are worth the benefits you will gain. You will not only be stress free, have more time, but your investment will be managed by a professional enabling the best growth it can.
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