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A Property Manager Can Save You Money

Brooklyn Property Management Blog of ProRealty

Hiring A Property Manager Can Save You Money

If you have a rental property and manage it by yourself, it is not just easy and involves many risks. New landlords try to maximize their profits by self-managing their properties. However, this do-it-yourself approach can cost you a lot of money. Because you don’t have the experience, expertise, and resources. On the other hand, hiring a property manager can save you money.

Below are the top ways a property manager can save you money.

 1. Reduced vacancy lengths

As the day passes and your property sits vacant, it will cost you money. The less time your property is vacant, the better for your finances. 

Hiring a property management service will let your property get the maximum exposure on the market. And property managers have a stockpile of prospective tenants, and they will find you instead of looking for them.

Well-managed properties are more likely to retain tenants. And if you have lesser vacancies, you will also have lesser expenses. If a rental property sits for at least a month vacancy, you will have cost a month’s rent and additional expenses for cleaning, changing locks, repainting walls, installing new floors, and other repairs and improvements. Therefore, if you can lessen the number of vacancies, you will save more money.

2. Higher quality tenants

A bad tenant makes the vacancy more costly since unpaid rent, eviction costs, and extensive property damages would add up to the expenses. If you encountered three or four bad tenants consecutively, there would be a suddenly lose even if you start well in your investment. Leasing the wrong tenant will actually lose you more money than a vacancy. 

But if you will hire an excellent property management company, they will conduct a comprehensive tenant screening that includes a criminal background check, employment verification, and rental history review. They will call the previous landlord and employer and ask the appropriate questions, and since they have the expertise, they will see the red flags that a landlord often overlooks. 

Moreover, getting a property management company for tenant screening will protect you against rental scams from tenants who don’t pay but are difficult to evict and against discrimination lawsuits due to inconsistent screening processes.

A  property manager can save you money because it is less expensive than the legal cost of defending and proving your right based on a Fair Housing violation.

3. A property manager can save you money by reducing maintenance costs

Working with a property management company is beneficial if you have a repair and maintenance issue that needs to handle. You will get access to their in-house maintenance staff, and this service is mostly included in the monthly fees.

And if there’s no available maintenance staff, the management company will look up to their network of contractors that are indeed licensed and insured. These are the contractors with which the management company has a good working relationship. Therefore, they know the quality of their work instead of finding a handyman on their own without the assurance of quality work.

And since there’s a volume of deals the property management has with the contractor, it will get a reduced rate for the services. In that scenario, you will pay for less work, and a discount could save you several hundred dollars. 

4. Increasing buying power

You will get a volume discount not just for the contractor’s fee and other services like an in-house attorney, cleaning services, carpet cleaners, pool maintenance, accountants, and insurance representatives. There are other discounts that will mesmerize you, like reduced banking rates. 

And talking about office equipment and supplies or accounting software, there’s no need to buy this stuff. The property management company will purchase it, and you will just pay for a small amount.

5. Tighter rent collection process

Consistent cash flow depends upon rent collection on time monthly. You need to be strict when it comes to payment. Late payment would be late payment no matter what the tenant has many reasons.

Hiring a property manager will become a buffer between you and the tenant. The property manager will take care of all collection matters. Since they are trained professionals, they will not fall for any hard-luck story. Instead, they will simply enforce the lease.

On the other hand, the do-it-yourself landlord has a more challenging time getting firm to the lease terms and is more susceptible to excuses, resulting in skipped payments and eviction process delays. Getting a property management company will reduce this potentially catastrophic situation.

In addition, the property management companies also renew leases up-to-date, in which an individual landlord is not attentive. 

6. Fewer legal problems

Failure to follow the rental laws, such as the national, state, local, and Fair Housing Act, can lead to monetary penalties, not just small amounts but hundreds of thousand dollars. A good property management company has the knowledge of all the applicable laws and, fortunately, has an attorney on staff. Policies will be established and strictly enforced to avoid violations of the law.

Lawsuits are unavoidable, and if there’s an instance that you have to go to court, a property management company can give you a referral to its ‘in-house legal counsel or an experienced real estate attorney. And their expertise in legal guidance will save you from a negative result.

7. A property manager can save you money and more time for you

Time can be valuably spent at your day job or finding more investment property. Or can it be more worth it if you spent it with your family on a weekend getaway or get a good sleep instead of handling emergency maintenance issue in the middle of the night?

A property management company can do all your tasks, from leasing your property, tenant screening, rent collection, field phone calls, handling repair and maintenance, lease renewal, lease enforcement, tenant eviction, and other tasks at a low fee. Many things can cover the cost of hiring a property management company from an avoided lawsuit, eviction, and vacant property. 

8. Introducing profitable amenities and resident services

It makes it more desirable for the potential tenants if your property has special features and amenities. But not all people have the same preference. A property manager can conduct a resident survey and studies and can recommend based on the results. Upgrades and improvements like additional parking, car charging stations, on-site laundry facilities, and package delivery lockers can be recommended. And these features will attract more potential tenants, increase property value and improve your finances.

Who will you hire to manage your property?

Property management companies are worth hiring. You can some of your finances at the same time will lessen your stress, and you can have more time with yourself, other jobs, and most especially for your family.

Hiring a property manager will keep your rental business running smoothly without the burden of getting into any issues, primarily legal. So if you want to hire a property management company, Pro Realty property management got you covered.

 

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