As a real estate investor, you know that making smart investments is critical for generating the passive income you need to meet your goals. Property owners can earn cash flow each month and benefit from long-term property appreciation. However, part of your success will depend on how well you manage your real estate investments.
If you are looking to improve the management of your property or simply want to remove the responsibility of taking care of tenants, collecting rent, and dealing with maintenance requests of your plate, hiring a property manager can be a great option. Here's why partnering with an Edmonds property management team could prove to be a smart investment!
Finding and keeping great rental property tenants is a core component of operating profitable rental properties. However, when renters aren’t happy (or you can’t find good ones that pay rent on time), you lose money!
One of the smartest reasons to hire a property manager for your investment property is to improve the tenant experience—for you and your renters. The right property management firm is available to answer tenant calls and make timely repairs in response to maintenance requests. Plus, owners don't have to find new tenants or handle renter issues with a property manager in place. This improved service for your residents can help to reduce annual rollover.
While a residential property management company can provide better service to the tenants, it can improve your overall experience as well. Managing rental properties comes with responsibilities to ensure it is properly maintained and more. It can also be time-consuming to collect the rent (or chase down late payments), market a vacant property, coordinate with vendors to make repairs, and keep up with the finances. If you don’t live near your rental property or have a limited amount of time, handling these tasks can be challenging—especially when receiving requests from tenants for late-night emergencies.
When you hire a property manager, they can handle these things for you! As a result, your rental property becomes a “passive” income stream when you don’t have to deal with the details.
One of the most important decisions you can make as a real estate investor comes when you choose a tenant. A quality tenant will pay rent on time, treat your property with respect, and avoid conflicts. However, bad renters could cause serious damage, may fall behind on rent, and force you into the eviction process to remove them from the home.
The best property managers apply a thorough tenant screening process to prevent bad renters from moving in! This will give you peace of mind that you are signing a lease agreement with someone that you can trust in the home. Avoiding terrible tenants is an excellent way to prevent costly property damage and income loss from your investment.
Just like your private residence, rental properties need repairs from time to time. While some landlords prefer to DIY small repairs, significant or frequent repairs can become costly without expert help. It’s often best to leave rental properties repairs to professionals. When you partner with a company that provides professional property management services, they come with the experience and resources to handle any type of repairs. If the repairs require extensive work from a licensed contractor, the right property managers have a network of vendors to serve your properties.
Tenants and property owners must follow the rules! These can include rules set by HOAs, local zoning ordinances, or local that govern landlord-tenant operations. Your rental manager can inform you of these requirements and will ensure that your processes, documents, and practices follow them accordingly when managing your property. Following the law helps a property owner avoid violations that could lead to fines or lawsuits.
In addition, your property manager enforces the lease! You don’t have to worry about renters breaking the rules with a property management company to monitor residents and hold them accountable during the lease term.
Understanding the current state of the real estate market and potential returns is easier with expert insights! While you may do your due diligence before completing an investment property purchase, market factors can change as time goes on. Staying on top of these changes is important. Your rental management company can offer any support that you need to assess the market and potential properties. This can give you insight into setting ideal rental rates to maximize your cash flow and investment return.
As you develop your real estate investment business, hiring a company that delivers professional property management services is one of the smartest things you can do! The best Edmonds property management company offers many of the benefits we mentioned here (and more) to support your long-term real estate investing success. If you’re ready to learn more about how smart it is to work with a rental manager, reach out to The Joseph Group today!