Owning rental properies is great. However, being a landlord can be terrible. While some owners scoff at the idea of having to pay 10% to a manager, there are at least 10 reasons why this 10% is well worth it. Among them are:
- Years of experience
- Background checks
- Quick rent collection
- Easy evictions of bad tenants
- Tracking of income and expenses
- Logical decision making
- Less stress
- Ready professionals on call
- Firm grasp of the market
- Great for advice
Years of Experience
Two propery managers at a real estate office dealing with fifty properties for the past ten years have twenty years of collective experience compared to a new investor’s new endeavor.
Background Checks
All that experience makes doing background checks second nature and judging potential renters by their creidt reports very easy. While new investors might want to overlook a mediorcre credit score in order to start collecting rent, an experienced manager will ask for a double deposit.
Quick Rent Collections
Rent is due to a property manager on the 5th and sent to owners on the 10th. If rent is paid on the 6th, then a late fee is attached and the owner only knows about it becuase his check is slightly bigger. There are no negotiations on this matter and renters rarely argue with a company like they would an individual.
Easy Evictions
When rent is overdue and then not paid, the eviction process begins immediately and tenants are out in a couple weeks. The house is spruced up, the deposit (or double deposit) is applied, and everyone moves on.
Easy at Tax Time
Property managers send 1099s to their clients along with a report showing income and expenses. This saves at least a couple hours on top of all the time not spent chasing delinquent rent, fixing leaks, and screening potential renters.
Logical Decision Making
Since property managers are not emotionally involved and they have so much experience, they make their decisions much more easily. Rather than be clouded by the judgment of someone who has strong feelings about this property, they think more pragmatically, which can save thousands in he long run.
Less Stress
All of this leads to less stress for the owner, which has been detailed in full already, but to reiterate, there are many times that late rents are not even known about until the money is received. When rent comes later than the 10th, the property manager begins to sweat over it, but assures the owner that they will be handling it.
Ready Professionals on Call
Property managers have a list of plumbers, carpenters, and other professionals on the ready.
Firm Grasp on the Market
When rents in the area are dropping or rising, they will adjust prices accordingly because their goal is to rent their homes with no vacancies at maximum value.
Great for Advice
Lastly, the advice that a seasoned property manager has to offer is priceless. They can advise owners on what to fix or improve, and even give an idea of where the market is heading.
