Real estate investing can be a high-risk, high-reward game but a mistake that property owners often make is either attempting to self-manage or not seeking out knowledgeable and reputable property management companies.
Although it is usually looked at as a cost-saving tactic, in the long run, this can actually cost you money. And as you know, cash is king and the end game in real estate investing is a successful return on your investment.
A one-man show just doesn’t cut it when it comes to managing a multi-unit property. Think about what your property manager does and look at all the wheels that need to be in motion to ensure your investment is well looked after.
Having a knowledgeable property management team in place to focus on their designated areas can reduce maintenance costs, increase buying power, protect your investment and alleviate legal problems. Let’s talk about some benefits that are often underappreciated as examples:
Lease-Up & Marketing
One incredibly valuable service to offer to our property owners is quality marketing. What this means to you, the owner is reduced vacancy times by faster and more effective lease-ups. A designated leasing team provides marketing solutions and frequently available showing times. It’s hard to ask your Property Manager to prioritize marketing your properties and showings apartments when dealing with a more pressing maintenance issue.
Qualifying Tenants
This step s notorious for being rushed and hastily carried out. Rookie property owners may have the mindset that they need to fill the unit as soon as possible so they can start collecting rent checks. Unfortunately, this is not the case. Throwing the first prospective tenant into your unit is a risk and can often be a costly one if it does not work out in your favour. A thorough screening needs to be completed on each prospect to ensure they qualify. This protects you AND surprising to some, it protects the prospective tenant and even current tenants. Evictions are expensive and time-consuming, avoid them altogether with the right tenant.
Reduced Maintenance Costs
While you may think the most cost-effective way to save on maintenance is by having your Property Manager complete repairs, renovations and exterior upkeep like snow removal, it could be having a reverse effect on your cash flow. Why? Well, time is money. Property Managers already wear many hats; maintenance should not be one of them. The most effective solution to maintenance and repairs is to have a Property Manager oversee these tasks by sourcing out and identifying cost-effective solutions, obtaining and awarding quotes and contracting these items out so they are done effectively, efficiently and well, saving you money in the long run. Delegating maintenance items gives the Property Manager the opportunity to tend to their day-to-day management duties.
So, when it comes to managing your property, too many cooks in the kitchen can be a good thing! One chef might just burn dinner. There are many areas involved in property management and your investment deserves a team of qualified people.
