The U.S. property management segment was worth $3.62 billion last year, up from $3.4 billion the year prior, and could reach $6.16 billion by 2028.
According to Fortune Business Insights, the industry is on pace to experience a compound annual growth rate of 7.9% between 2021 and 2028.
Meanwhile, the Census Bureau counted 48.2 million individual units in close to 20 million rental properties in its 2018 Rental Housing Finance Survey. The report notes that individual investors owned close to 14.3 million of those properties.
If you own investment properties and want to lessen your workload and stress level, consider the benefits of hiring a property management company to handle the day-to-day operations.
The chances are good that a reputable service provider offers options you might not know. And as you consider available service options, you’ll see that retaining the services of a property management firm is in your best interests.
Continue reading to see a list of some of the in-demand service options available.
It’s one thing to purchase a rental property, get it ready for tenants, and then advertise the rental property. But it’s another thing entirely to know how to set the rent. While it’s not in your best interests to set the rate too high, you don’t want to set it too low either. How do you determine how to select a reasonable rate that’s fair to you and your tenants?
A property manager will know the market inside and out, so it’ll be ideally suited to advise on setting the rent. You could sort through market data to check out property values and rental stats. But that will take you a lot of time and effort that you might not have available. But a property manager can do the research and then give you the information you need to make an informed decision.
As a property owner, you’ll want a 100% occupancy rate. That’ll give you the passive monthly rental income that factored into your wanting to buy an investment property in the first place. So, when tenants vacate, you’ll want to fill that vacancy as soon as possible. Your property manager will prepare the vacant unit by bringing in contractors to complete repairs and maintenance. As well, your property manager will let you know if there are things you can do to make the vacant unit more desirable. This can help attract more suitable tenants who want to stick around long term.
One of the most essential services property management companies offer is the screening of tenants. If your units are occupied by reliable tenants who pay on time, take care of their units, and don’t cause any trouble, you’ll no doubt be a happy camper. But if you have tenants who cause you nothing but trouble, you might end up regretting the day you bought an investment property.
A property manager will have the skills needed to vet the suitability of people who want to rent your units. The staff working at such a service provider will conduct background checks and criminal record checks. They might request letters from employers and copies of pay stubs to ensure would-be tenants have jobs and have the financial wherewithal to pay rent reliably month after month.
A property manager will also ensure that everything is done in accordance with the law. Knowing the law around rejecting prospective tenants is critical to avoiding lawsuits. A property will ensure everything is done by the book.
It’s been said that if you build it, they will come. But the reality is that you need to ensure that “they” — prospective tenants — know that you’re there and that you have rental units. A property manager will be able to properly market your investment property in ways that reach your target demographic. It’ll know what publications and websites to target. You’ll save a lot of time and effort by allowing a property manager to do what it does best.
Another service property managers offer is rent collection. Do you want to go to your rental property weekly, bi-weekly, or monthly to collect rent? It can get frustrating if one or more tenants don’t pay on time. When you get a property manager, you won’t have to worry about collecting rent from tenants. The property management firm will shoulder responsibility for this important responsibility.
One way a property manager can simplify the rent-collection process is by automating it so that money is automatically deducted from tenants’ bank accounts. This method will make things easier for tenants as well since they won’t have to write out checks.
You can also count on a property manager to schedule needed maintenance and repairs. One reason good tenants might look for greener pastures elsewhere and vacate units is if they don’t feel their rental properties are adequately maintained. You can appeal to such consumers by ensuring that your rental properties are in good repair. When you hire a property manager to handle such important matters, nothing will fall between the cracks. You’ll have a service provider who stays on top of things.
If you manage your rental property yourself, you’ll have to handle tenant concerns personally. While you’ll no doubt want to provide the best possible service, it’ll be hard to wear multiple hats. Your best bet is to focus on being an investment property owner while allowing a property manager to handle the day-to-day operations on your behalf. Tenants can contact the property manager for timely service at all times, so you won’t have to worry about fielding calls from tenants when you’re trying to have dinner with the family or get some sleep.
These are just a handful of the services you can get from a property manager. At Green Residential, we pride ourselves on offering a full suite of property management services.
We believe that property investors should be able to focus on finding other opportunities or spending quality time with their families. That’s why we offer services to help with all aspects of running rental units. For more information on how we can help you operate your investment property, contact us.
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