Frequently Asked Questions
Below are some things that many people assume but which we think it might be a good idea to reconsider.
If I ever have a problem, I can handle it myself.
While it is uncommon, there may come a time during the course of a lease where you will run into some serious problems. Evictions, tenant disputes, and other legal issues may arise between a landlord and tenant. Also, there are many state specific laws and ordinances related to landlords, tenants, and rental properties. Sometimes a landlord may even accidentally violate a state law associated with managing their property. Hiring a professional property manager can alleviate much of the stress associated with this aspect of being a landlord. Additionally, many real estate companies keep a law firm on retainer, to assist them in the event legal council is required.
Accounting is easy and I can handle it.
Unless you are a CPA, this aspect of managing a property can be a headache. A successful property management firm likely already has the resources in place to handle major accounting hurdles associated with property acquisition and management. They can provide you with monthly accounting reports, invoices, and escrow fund statements with the click of a button. Your property manager will likely have an accounting firm handling their books as well, making it easy for them to deliver you accurate and precise information that will save you time and money.
Its easy to rent a place and collect rent. I don't need to hire a company to do that for me.
Once you have a potential tenant lined up to rent the property, it is time for the collection of deposits and rent. And, if your property is located in a home owner’s association, there are usually application fees, common area deposits, and other procedures associated with renting in an HOA. A property manager specializes in collecting the appropriate fees and deposits for the property. Once the tenant is in the property, they will also collect the rent directly and can usually direct deposit it into the account of your choosing. If the tenant does not pay, or is late, the property manager will actively attempt to collect the rent on the owner’s behalf. This can alleviate the strain of an owner to collect payments, or worry about tenant checks that may have become “lost” in the mail. Timely collection and disbursement of payments allows the property owner to rest a little easier.
I can do property management in my spare time and it won’t interfere with my day.
Unless you are a full time landlord, you likely have a career, family, and other obligations that consume most of your time. Hiring a professional property management company should alleviate most, if not all of the difficulty of managing a successful real estate asset. For most people, a house, condo, or small multifamily complex will be the most expensive purchase they will make in a lifetime. And most people don't have the bandwidth in their busy lives to dedicate the proper attention asset management deserves. Or, they aren’t able or willing to be on call 24 hours a day, 7 days a week. The most important question is: “Is this the highest and best use of my time?” Hiring a professional will allow you the freedom to focus on the things that matter most.
|Repairs are easy and they will rarely happen. |
Homes require regular maintenance and repairs. From air conditioning to landscaping, you want someone you can trust to facilitate and monitor any work being done to your home. A good property manager will have overall knowledge of home components and general maintenance knowledge. In addition, they work every day with their network of contractors and vendors to assure that their client is getting the best service at a fair price. More often than not, a professional will get a discount on services, saving the property owner money. With a professional management firm, you don't have to be on the other end of the line every time an outlet doesn’t work, or if the air conditioning goes out at 3AM.