Investing in a rental property is a potentially profitable endeavor, yet it also comes with responsibilities that are not necessarily for the faint of heart.
From dealing with the renters with prickly personalities to handling midnight phone calls about broken HVACs, landlords may find themselves wearing the hats of handyman, accountant, marketer, negotiator, and peacemaker. That’s why the majority of successful rental property investors hire a professional property manager to help with the nitty-gritty responsibilities.
When going that route, however, proximity is key. If you rent out an apartment unit in Houston, Texas, it’s essential to find a property manager in Houston that caters to apartment owners.
Keep reading to learn about five reasons why a property manager can help if you own a rental property and want to be successful.
1. Tenant Placement and Screening
Good tenants are the biggest — and most challenging — part of real estate investing. A bad tenant can lead to non-payment of rent, property damage, and even litigation if the unpleasant substances hit the fan. Property managers bring years of experience with professional tenant screening beyond a basic surface-level background check.
They typically verify income and employment, check credit and rental history, contact previous landlords for references, and adhere to fair housing laws.
Proper screening reduces the risk of getting problematic tenants. In addition, seasoned property managers know how to market vacancies to find you quality tenants quickly.
2. Effective Collection of Rent and Management of Money
Late payments are probably the most annoying to landlords. After all, renters who are loosey-goosey about paying up on time can hinder the flow of passive income.
Property managers act as a cushion between you and your tenants by taking in rent and managing lease documents.
Contemporary property management firms also have websites where your tenants can make rent payments online, receive reminders, or even set up automatic payments.
3. Maintenance and Repairs
No rental property owner wants the 2 a.m. emergency call reporting a leaky pipe or broken heater. That’s what property managers handle, so you don’t have to. They typically have a vetted group of experienced contractors, vendors, and service professionals on speed dial who can readily repair maintenance issues.
Furthermore, neat and clean buildings attract and retain quality tenants and minimize turnover.
4. Legal Expertise and Risk Management
Landlord-tenant law differs extensively depending on the location. It’s often more than landlords can manage to keep up with, since things can change at any time. Property managers, however, stay up to date on local, state, and federal legislation that affects housing.
They can assist with the creation and execution of legally binding lease contracts, the enforcement of fair housing and anti-discrimination regulations, and the issuance of eviction procedures, if necessary, in the correct way.
Mistakes here may lead to lawsuits, fines, or reputational damage. So, property managers can keep landlords from making legal mistakes and lower their risk exposure.
5. Time Savings and Peace of Mind
Perhaps the best benefit of hiring a property manager is the gift of quality time you’ll receive. Owning a rental home is a business — and if you own several investment properties or have a full-time job other than owning a rental property, you could stretch yourself too thin.
A property manager will take care of the day-to-day drudgery, and you can invest time in building your real estate investment portfolio, spending time alone or with family, and doing other things on your to-do list.
Buying a rental property can be profitable, but it’s no picnic. From finding the right tenants to collecting rent, you will have a lot on your plate if you do it alone.
Having a property manager will provide an insurance policy and roadmap to long-term profitability. Due to their knowledge, you’ll more likely than not enjoy good tenants, stable cash flow, properly maintained properties, protection from lawsuits, and a better work-life balance.
For the majority of rental property owners, the question isn’t whether they can afford a property manager but whether they can afford to do without one.
