October 22nd, 2018
This hands-off approach saves you time and puts your property into experienced hands. All you really have to do is go over property reports and collect your rent each month for an agreed upon fee.
In this post we’ll look at all of the things third party property managers can do, including collecting rent on your behalf and handling all communication from tenants.
Having your property professionally managed means you don’t have to talk to your tenants! Though this might sound cold, some landlords want to be an arm’s length away from their properties.
All tenant requests, complaints and applications will go through the property manager who can decide whether you need to be aware of them. Most of the time, the property manager has the capacity to handle tenant communications and questions without having to bother you.
This will come in handy if you don’t live anywhere close to your rental property. The property management team is able to collect the rent for you, facilitate online payments, then forward you the direct deposit as a monthly lump sum.
If you own a building with multiple units, or moreover, multiple buildings comprised of multiple units, a property management team will be a lifesaver.
Third-party collection means you’ll always have your rent collected on time. Further, when a unit becomes vacant, the property manager is able to fill it and set the rental rate at a competitive, market-value price.
Property managers are experienced in rent collection and have heard every excuse in the book. If rent isn’t collected on time, they have the ability to enforce strict late penalties. In most cases, a late payment from a tenant won’t even affect you.
When prospective tenants apply to live in your building, the property manager can look at their credit report and see if they have a history of late payments before handing over the keys.
Property managers are keeping up-to-date records of your building’s income. They have the ability to report on your cash flow, maintain a working budget for maintenance and repair, hire those repairs people, and even file your investment property’s annual taxes.
If you're looking to live a regular life aside from property ownership, hiring an experienced property management team is an educated decision.