The main similarity between traditional and non-traditional investments is the goal for a good return on investment. There are tips and tricks to reach financial freedom, like upgrading your curb appeal or repainting rooms. You can think of a property management company like an investment advisor for the stock market.
What are the benefits of hiring a property manager?
There are plenty of benefits to hiring a property management company. We’ve narrowed them down to the four most important.
You’ll have access to more vendors that you don’t have to vet yourself.
By working through a property management company, you will have access to vendors who are well trusted and vetted. You want the best of the best tackling maintenance issues on your property and for the right price. Property management companies have vendors on deck. A good property manager will have your best interest in mind when picking a vendor.
The team will focus on shorter vacancy times and tenant retention.
Property management companies have leasing teams that strategically market their properties. They have access to plenty of marketing platforms and have the credibility of the company behind them. People tend to trust when there are plenty of reviews from those who have experienced a good or service before them.
Property managers help with this process by making sure turnovers are complete in a timely manner. “We put all our time and attention into preparing that space for new residents,” Nate Schweers, a Property Manager at RPM Iowa says.
A property management company will free up your time.
Your time is valuable and can not be earned back. If you have a full-time career on top of your investment portfolio, you could be burning the candle at both ends. “Our jobs are solely managing investors’ properties. You can have peace of mind knowing that your property is being well taken care of,” Schweers says.
Professional suggestions that will optimize your rental rates.
If you trust your property managers, they can make educated suggestions on how to elevate your property. Property managers should make suggestions that align with the goals you’ve set for the house.
“There’s a difference between someone who is wanting their property to be a long-term investment or a short-term investment,” Schweers mentions. “Our suggestions will be totally different. A longer-term investment may need the interior repainted to follow market trends, and a short-term may just need smaller upgrades, like the curb appeal.”
A good property management company will help you set goals if you aren’t sure where to start. They can pull market trends and statistics to lead you to making an educated decision.
Hiring a property management company isn’t the right decision for everyone.
Sometimes the best move is to be your own landlord. You may consider a property manager later down the road when you find that handling residents is a big time investment for you. Here are some reasons why people deter from hiring a property manager:
It takes away from your monthly cash flow.
The common consensus is that hiring a property management company will cost you. This is not the case.
Building wealth is should be one focus for a good property management company. They also need to be able to handle management duties such as collecting rent, maintenance requests, and filling a property’s vacancy. A one-stop shop can be tricky to find, so look for a company that has diverse team members. Look for: Property managers, leasing specialists, marketing or content managers, and real estate investment advisors (REIAs). This will be a good indication of whether or not they have what you need in order to reach your investment goals.
You want to be hands-on with the process and don’t want to hand the reins to a property management company just yet.
You may not be ready to make changes to your home. Or you don’t have the capacity to trust someone else to make the right decisions for your wealth. Just like traditional investments, some people choose to be their own advisor and that’s completely okay.
A good property management company will not expect you to give everything up. Whoever you hire needs to be flexible and understanding of your needs.
If you find that you enjoy being a landlord, but you’re struggling to find qualified residents, you could hire someone to help you. Some companies, like RPM Iowa, have a lease-only service.
Like pieces of a puzzle, it only works if there is a match.
“You’re hiring someone that has the same passion for the property as you do,” Schweers explains what to look for in regards to the perfect match between investors and their property managers. “You want to be able to trust the person(s) who manage the property as if it’s their own.” If there’s an apparent opportunity to form a relationship with professionals who have your highest interest in mind, you may have lucked out. You want to hire a team that can collaborate and grow your wealth with you.
If you have any questions about building wealth through real estate, or what property management services we can offer, give us a call!