You and your tenants may sleep better when you leave the details to professionals
You’ve landed a prime property in a great location. On the surface, it seems like an easy, consistent revenue source that diversifies your portfolio and builds equity. And whether it’s residential or commercial, it can be tempting to take on all management duties yourself—this saves money and gives you confidence that every detail is just right. But a closer look at the details of what professional property management offers may lead you to a different conclusion.
Why consider a property management firm?
While property management may seem economical and fairly simple on the surface, there are a number of instances where hiring a manager may be the smarter course of action:
- The number of units has grown (this is good!) but to a level that the landlord can no longer manage (not so good…)
- The property is in a different city or state, or perhaps on another continent.
- You need someone to handle day-to-day operations (simple maintenance, rent collection), which frees you up to focus on larger concerns such as marketing, staffing, and acquisition of additional units.
- You need dedicated expertise in issues of rental law, including federal and state fair housing regulations.
- You need someone with a deep understanding of both industry best practices and the local market, either through personal knowledge or a network of fellow professionals.
The cost for these services typically includes fees for basic setup, leasing, maintenance, and other management duties.
Maintenance services are a key element of professional property management
A property manager will be your eyes on the ground, making sure routine maintenance is in check and tending to emergency repairs that may be needed. A quality manager has a list of vendors which provide fair rates and service records. These vendors will share a vested interested in providing good service in order to maintain their preferred status with the management company.
Managing tenant relations
Your residential or commercial tenants will likely appreciate a management company that’s focused on their needs and not a landlord who’s spread thin with competing for career or business priorities. Best practices are to make contact about four times a year, updating tenants on the relative health of the property and any current maintenance or safety issues, and generally keeping open channels of communication.
Managers can also intercept and dispense with any frivolous complaints (loud neighbors, construction across the street, etc.) that will take up your time. And more serious issues must be addressed in a timely manner to meet legal responsibilities.
Rent and lease management
Property managers can handle arguably the most tedious and frustrating aspect of rental property ownership—collecting the actual rent. If the check comes on time in the mail or payment shows up automatically online, that’s great. But on those occasions when it doesn’t, you don’t spend hours tracking down tenants, enduring excuses, and possibly regretting the investment in the first place.
A management company can help set policy about late rent and oversee the process of warnings and, if necessary, eviction, that comply with state and local law. It can also enforce other terms of the lease, such as noise violations and unauthorized alterations to the property.
Finding new tenants is a service offered by quality management companies
Without reliable, productive tenants, the most beautiful property will sit idle and devoid of life. The process of finding ideal tenants can be unpredictable and frustrating—placing ads, screening applications, interviewing tenants, and coordinating on-site visits. A management company can take this onerous task off your plate or, at a minimum, significantly augment your efforts to ensure occupancy remains consistent.
Property management is a worthwhile investment for South Florida CRE
In the end, it’s crucial to understand the scope of responsibility inherent in property self-management. While there may be some up-front cost savings, the long-term time commitment and aggravation often tip the scales towards hiring an outside firm to do the heavy lifting. Morris Southeast Group provides comprehensive, professional property management that can make the difference between marginal and successful real estate investment. For a free consultation on property management services or commercial real estate investment, call us at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at kenmorris@morrissegroup.com.
Tags: Maintenance service, Managing tenant relations, New tenants, Property Management Firm, Rent and lease management, South Florida Landlord Headaches
