If you own real estate investment properties, then you know how challenging it can be to manage those properties and the tenants that are renting or leasing your homes or commercial buildings. In fact, property management can quickly turn into a full-time job! So if you maintain real estate holdings, then you may want to consider hiring a property management firm, as this can provide you with many benefits that can even increase your profit margin. So that’s exactly what we’ll explore in today’s article from The Short Sale Gal Kristine Zelazo.
What is Property Management?
Property management can be extremely time consuming, especially if you have multiple properties spread across a large area or have properties located a significant distance from your home. Leaseholders and tenants can range from needy to downright demanding. In fact, many tenants call the property owner in cases where any average homeowner would just tend to the matter on their own. For example, it’s not uncommon to get a middle-of-the-night call demanding help with a clogged drain, while a homeowner would just run out for a bottle of Drano.
Oh, and there’s also those periodic complaints about a neighboring tenant — complaints that can put you in the position of peacemaker and mediator.
Incidentals aside, you also need to oversee the management of the actual property and grounds. Plus, there’s the matter of screening new potential tenants and collecting rental fees.
Property management firms can assist with all of these, issues, including repairs and maintenance, care of the buildings and grounds, miscellaneous tenant-related issues, finding and screening prospective tenants, collecting rent from current tenants, and enforcing rules and regulations.
It may seem counter-intuitive, but a property management firm can actually make you more profitable as a real estate investor. Instead of dealing with property management issues, you can focus on other, more enjoyable and profitable tasks, such as seeking out new and profitable investment opportunities.
Is a Property Management Service Right for Me?
Lots of different real estate investors can benefit from property management services, including:
- property owners who live a significant distance from the property in question;
- owners who don’t feel equipped to deal with certain aspects of property management;
- property owners who have a full-time job and cannot tend to tenant issues at a moment’s notice;
- owners of large, multi-unit properties; and
- individuals who don’t have the time or desire to manage the actual buildings and grounds.
To determine if a property management firm is right for you, you should begin by considering and evaluating your time obligations. Do you have the time and flexibility in your schedule to manage the property and deal with unexpected incidentals? If you have a traditional 9-to-5 office job that prevents you from responding to tenant complaints in a timely manner? If so, you may benefit from hiring a property management firm.
Do you have the patience and desire to deal with tenants? Including tenants who may be upset and angry? If you’re a “people person,” and feel comfortable acting in an assertive role, you may enjoy dealing with tenants, while others feel uncomfortable and would much prefer to have someone else deal with those issues.
In addition, most property management firms have a handyman and tradesmen such as electricians, plumbers and landscapers on-staff. Smaller firms will usually have arrangements with local service providers, enabling them to provide these specialized services at a much lower cost than what you would spend if you were to hire them on your own. The actual cost of services is typically lower when you go through a property management firm.
It’s important to remember that time is money, so as you crunch the numbers, consider your going rate and how much time you spend tending to property management tasks on a monthly basis. Then, compare this figure to what a property manager is charging. Also remember that many property management firms offer customized services, so if you feel comfortable with some aspects of property management, such as screening tenants and collecting rent, then you can typically continue to deal with this while the property management firm deals with all other issues.
In short, turning to a property management firm can allow you to pursue new and profitable investment opportunities, so it’s definitely something to consider if you maintain rental holdings.
Need Help Getting Started in Real Estate Investing?
If you’re getting started in real estate, consider working with a real estate investing mentor like The Short Sale Gal, Kristine Zelazo. Getting started in real estate investing can be somewhat challenging, but when done right, you can stand to make significant profits. You’ll have lots of advantages in this regard when you work with a real estate investing and short sale expert like Kristine Zelazo, better known as The Short Sale Gal.
Based in Florida, Kristine works with both buyers and sellers and she is an experienced negotiator. So if you’re an investor seeking to get started in buying short sales and need a great mentor or wish to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
To get started with selling your home, simply complete the home pre-sale form to provide Kristine with additional information on the property in question. Then, call 786.570.0360.