The Importance of Property Management: A Guide for Investors
For many investors, purchasing rental properties sounds like a great way to earn passive income. You just purchase a property, rent it out, and capture rent payments in the form of income. However, the reality is not that simple. Regardless of how modest your rental property is, it takes a great deal of time to ensure that you get the most from your investment. You have to keep up with building maintenance, ensure that you find qualified, high-quality tenants, and develop a relationship with those tenants at some level to ensure they are abiding by the terms of their leases. And this task is multiplied when you have more than one property to manage — so much so that it can turn into a full-time job.
That’s where a competent property management partner can be a great asset. Property management is defined as the managing of all the business operations involved with residential or commercial real estate properties. In this article, we’ll give you an overview of how a property manager can help add value to your real estate and rental portfolio by managing daily operations and ensuring a greater return on your investment.
What You Need to Know About Property Management
A property management company’s job is to ensure that you achieve success in handling your investment real estate properties. To do this, they help you manage several aspects of both commercial and residential rental properties, including:
- Using advertising to capture the interest of potential rental applicants.
- Creating and enforcing appropriate lease agreements.
- Scheduling repairs and maintenance on an as-needed basis.
- Collecting rental payments every month.
- Preparing financial reports and statements for the investor.
- Developing relationships with tenants.
- Handling eviction procedures where necessary.
Many property management companies allow you to be as involved as you like, but in general, working with a third-party property management company can help relieve you of these duties so you can focus on other commitments.
The Benefits of Using a Property Management Company
A good property management company helps to maximize your investment in your rental property. They help provide qualified tenants, keep them happy, and ensure that your property remains in top condition. Other benefits include:
- Reducing the amount of time you spend creating income from your rental properties.
- Shielding you from the need to respond to tenant requests outside of business hours.
- Removing the need for you to travel to and from your properties to handle the details of rental management.
- Decreasing tenant turnover to maximize your profit potential.
- Reducing maintenance costs by providing access to a pool of service providers through their internal network.
In addition, property management companies have in-depth knowledge of landlord and tenant laws as well as fair housing legislation in your investment areas so they can help reduce your exposure to potential legal issues. They will also be involved in handling rental terminations and the return — or withholding — of security deposits, keeping you shielded from these stressful situations.
Property Management Partners Can Help You Maximize Profit
Let’s face it — for most people, rental properties are not just a hobby. You need them to meet your revenue producing and investment goals. Partnering with a property management company can help provide you with the resources you need to maximize your investment income from rental properties. In addition to taking care of all of the issues explained above, a good property manager will concentrate on strategies that help you decrease overall expenses. In fact, as your property increases in value, your property manager will ensure that value is appropriately reflected in your profits each month. Keeping up with market trends, rental rates, and even changing laws and regulations are part of their expertise, so you do not have to worry about staying abreast of these issues.
33 Realty — Your Partner for Maximizing Return
As a multi-faceted real estate agency, 33 Realty offers you added value as a property management partner. With over 150 employees, we have the expertise you need to maximize the value of your investment real estate throughout Illinois and Indiana. In fact, our property management services have expanded to cover multi-family, office, retail, and even industrial assets, allowing you to grow your investment portfolio in almost any direction.
Our team can help you purchase, renovate, and maintain your investment real estate portfolio, providing one-stop resources for all your real estate needs. If you want to learn more about how our team can help you create, manage, or expand your investment property revenue, contact us here or call 773-839-4728.