If you own an income property, you would know that the majority of the work making the investment succeed begins after you have bought the property. Raising money to finance a rental property is one of the first hurdles you have to cross at the start of your investment journey. But as hard as that may be, it pales in comparison to the work involved in operating the property after you have bought it.
Managing a rental property requires specific skills. It is a multidimensional endeavor that is as tasking as any full-time job. You must become savvy at maintaining the physical structure of the building and marketing the property to maximize occupancy rates. At the same time, you must see to the daily needs of tenants, while striving to balance costs and ensure you turn a profit every single month.
With so many things to oversee in a rental property, it is not surprising that many investors start out trying to build a business but end up with a job. This is the reason why most people who buy investment properties never realize their dream of becoming established property investors. Most never even make it past their first three years and of the few that do, the majority remain small.
1. Be profitable from the get-go
With a property manager overseeing your income property, there is no learning curve. You can avoid the costly mistakes other investors make in their first few months of owning a rental property. You get to leapfrog this teething period and go right to the phase where your property starts to put money in your pocket.
2. Flawless property maintenance
Getting a handle on physical maintenance will be one of your biggest headaches as a landlord. You must first understand the issues to find the right person to deal with them. Afterward, you must ensure the problem is permanently fixed and you don’t overpay for repairs. In this process, mistakes are almost inevitable but a property manager can help you avoid all that hassle.
3. They shield you from tenants
Dealing with people is one of the worst things about owning a rental property. Property managers have the tools, expertise, and experience to do a thorough screening of potential renters and ensure you don’t rent to bad tenants. They handle the often messy task of collecting the rent on time, enforcing the lease terms, and evicting problematic tenants.
4. They will sustain your occupancy rates
The more systematic and extensive your processes for marketing the property, the quicker you will be able to fill vacancies and the more profitable your property will be. But building such a system takes many years. Property managers have vast networks that let them find new tenants in a short time.
5. They help your property appreciate
In addition to making sure the rental property generates sufficient rental income on a steady basis, a property manager will also make the property more valuable. The property manager will set up a schedule for inspecting the building regularly to make sure it is in the best condition. The manager will also advise you on renovations that will improve the value of your property.
6. Access to local experts
One of the biggest benefits you get from a property manager is access to the people they know. Given that most property managers operate within a locality, they know the most competent experts in the area. They will save you the trouble of searching for the right kind of attorney, accountant, handyman, roofing expert, electrician, plumber, etc.
7. They help you navigate the law
The process of owning rental property is filled with legal difficulties. You are at constant risk of being sued by a prospective, current, or past tenant. You are also at risk of running afoul of local regulations. With a competent property manager by your side, navigating these legal landmines is much easier.
Your Key to Investment Property Success
Why do so many newbie property investors fail in their first few years? What do real estate millionaires know that other property investors need to learn? As with all things in life, success as a property investor is determined by information and preparation. How much you know about the realities of an investment and your level of preparedness will influence your success.
If from the outset, you recognize that the skill needed to buy a property is not the same skill needed to manage it, you make your success easier. Operating a rental property is the same as running a business; you need specialized knowledge, systems, and employees. Successful property investors know their limitations in this regard and that is why they hire property managers.
Property managers have the right mix of building maintenance, marketing, human relationship management, and financial skills to make a rental property profitable from the start. The property manager is the key that transforms a semi-passive form of investing into a passive source of income. A property manager lets you separate your success as a property investor from your investment of time.
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