February 23, 2024


Mad about real estate

Who Else Needs Property Management? Top 6 Reasons to Hire a Property Manager

One of the biggest headaches of investing in real estate is finding renters, dealing with tenants, and fixing toilets at 3:00 in the morning. But there is a way to be a real estate investor and not deal with any of these things. All you have to do is hire a professional to manage your property, and here are the 6 top reasons why you should:

Local Knowledge of Rental Rates: Property Managers have extensive knowledge and experience with the local market and know what to price to market the property in order to minimize vacancy and maximize your profits. For example, a Dallas Property Management team is going to know the local Dallas rental market which is going to be quite different than the New York City market.

Rent Collection: A residential real estate professional has strategies and systems to improve rent collection and on time rental payments. This will allow you to ensure consistent and swift rent collection, and good cash flow is absolutely critical when trying to be a successful real estate investor in today’s market.

Financial Records and Security Deposit: Property Managers will provide detailed income and expenses reports along with end-of-year tax reports for your accountant or financial advisor saving you the bookkeeping headache. Additionally, they will also manage your security deposit escrow funds and make sure you are in compliance with local and state regulations.

Eviction: Let’s say the worst scenario happens and your tenant stops paying rent. Your rental team can start the headache and hassle of the eviction process for you.

Freedom: With someone else managing your property in place you don’t have to live in the area where your property is located. You are free to go on vacation or retire in a foreign country knowing that your property is being professionally managed while you are away.

Low Cost: Perhaps the best reason to A Property Manager will charge around 10% of the monthly rent collected. Assuming you are collecting $1000 per month in rent then the property management fee would be $100 per month. That is a little over $3 a day, could you do all these things for $3 a day?