A property manager oversees the daily running of the property on behalf of the property owner. But why have a property manager when you can manage the property for yourself?
Whether property is owned for investment, development, or personal use, the technical and legal complexities of property management can place a disproportionate burden on both time and resources.
Consider the following additional benefits of hiring a property manager:
1. More freedom and time
Having a third party manage your property undoubtedly gives you more power to move and act freely. You do not have to receive tenants enquiries, follow up for rent payment, repairs etc; your property manager should handle these matters on your behalf.
2. Access to expertise
Property managers have vast experience in management of various types of properties and are always in touch with the current market rates and the dynamics of the property market.
Access to such expertise guarantees the landlord better results in terms of investment and finances.
3. Reduced legal problems and liabilities
Property managers know the importance of good tenant selection; selection of a good tenant goes a long way in ensuring enhanced and consistent income, better relationships between all stakeholders of the building, appropriate use of the space let out and less legal problems.
Property managers also carry out lease and other documents management. By having leases prepared and duly signed, property managers are able to take care of the landlord’s interests, eliminate controlled/protected tenancies and thus have a solid and legal basis to address any legal matters.
4. Access to high quality and long-term tenants
Vetting and good tenant selection is a must for a property manager when applications are made. Once more a high-quality tenant guarantees you of a stable income over a longer period of time with less maintenance costs. Proper tenant selection also helps to enhance the image and investment value of the building.
5. Higher occupancy levels and tenant retention
Property managers also have insight on how to Optimally let out a space, set appropriate rental rates and negotiate with tenants. Optimal marketing results in higher occupancy levels; good negotiation tactics further helps retain tenants.
6. Better relationship management
Over the years, property managers have interacted with, understood and managed various personality types. As a result, they are able to successfully manage all relationships necessary when handling a property. Some of the relationships managed include: landlord-local authority, landlord-tenant, service provider-tenant, service provider-landlord, property manager-tenant, landlord-property manager, property manager-service provider. Such relationships guarantee the landlord of better services that are competitive, steady income and high occupancy rates and reduced expenses.
7. More professional property and equipment maintenance
Property managers know the importance of timely and systematic maintenance of a building plus it’s equipment. Good maintenance results in less expenditure and increases the life of a property/equipment. A well-maintained building also attracts potential tenants and helps retain tenants.
8. Better financial management
Record keeping is a key aspect of property management. This allows the property manager to ensure that monies paid, expenditure, savings made and money set aside are all easily tracked and accounted for. Further such records allow for forecasting for the property owner(s) income, expenditure and further investments.
9. Increased and maintained value of a property
A properly managed property i.e one where all relationships are properly managed, financial records are well kept etc results in increased value of the property. This is a general goal for the property manager which makes them indispensable asset for a landlord.
10. Compliance with local statutory requirements and regulations
Along with expertise, property managers are also usually well appraised on statutory requirements and regulations. Property managers are among the key stakeholders whenever laws are being drafted. Hence, they are aware of key matters/areas that need to be addressed and how to address them. This includes: taxes, public health matters, building regulations, land rates and rent, redecoration of buidings etc.