When Is The Right Time For Investors To Hire A Property Manager

You have already made the smart decision to be a real estate investor, and that at some point you’ll need a property manager. Now it’s time to figure out when the best time to start using the services of a property manager. Do you want to start with one from the get go, or do you want to manage the property yourself for a bit and do it later? The answer to that will depend on a few considerations.

The first is how many properties do you have?

When Is The Right Time For Investors To Hire A Property ManagerIf it’s just one, you may want to wait a bit before starting with a property manager. This is especially true if you are in the same location as your property and the property is well maintained. In this case the cost may outweigh the benefit.

However, if this is your second or third or more it would probably be the right time. If you have a lot of properties you will benefit from what the property management company will be able to provide.

Multiple units means that you won’t have the time to be sure that you have good tenants and well maintained properties. You may be able to get rents collected, but it is doubtful that you have your own system to take automatic payments.

What about the knowledge and time it takes to evict a bad tenant?

If you have one or more properties and you live at least an hour or more away from them, you need a property management company.

That “hey, my heat is out” midnight call will be even more annoying to both you and your tenant if it takes you until 2 or 3 in the morning to even get there to see what is going on.

Then what if you don’t know who to call in the area to fix it? The same goes for evicting a bad tenant from a long distance away, or finding a new tenant from that same distance away. It is all made that much more difficult, so why try when someone who knows the area, has contractors on hand to make repairs and knows the local landlord tenant law?

Another consideration is how busy your life is and how well you can handle the added burden of taking care of your property or properties. If you think it would be too much, why not hire a property management company? They will take that burden from your shoulders, leaving you to handle your daytime job or the other businesses, as well as your family.

Part of this consideration is your desire to be a hands-on landlord. If you don’t, then you need to hire someone to do it for you. What you may not realize is if you do become “hands-on” you’ll become an employer and have all of the headaches that entails.

Last consideration is whether your property is, or will be, part of a state or federal affordable housing program. These programs can have complicated requirements and dealing with tenants in this kind of program can be a minefield that could get you in a lot of hot water.

Typically, these programs involve the landlord receiving financial assistance, like a grant or low interest loan in return for a guaranty that they will rent at least part of the property to tenants earning below a certain income level. Also under this type of consideration is all of the different fair housing laws. Do you know what they are? Do you know what it means to violate them? Do you know what it will cost you if you violate them? These are also very complicated laws and regulations and one misstep could cost you thousands of dollars or more.

Making the decision to hire a professional to help you with your investment properties will vary but keeping the above in mind will help you make the right decision at the right time.

Looking to hire an amazing Denver Property Management Company? Give us a call today for a free quote! 303-452-5853

5 Ways A Property Manager Can Save You Money

5 Ways A Property Manager Can Save You Money

Congratulations! You jumped into being an investment property owner. Great decision. Now time to make another great decision… hire a property manager. Yes, you’ll have to pay a fee to them to manage your property, or even properties, but in the long run doing so will save you a lot of money. Here’s how:

The first and best way to save you money

The first and best way a property manager can not only save you money, but help you make more money is to keep the time your property is vacant to a minimum.

Empty properties are money vampires. Not to mention the costs of cleaning, changing locks, fixing damage and wear and tear and marketing the property when it is unrented. You are spending money to maintain it, paying taxes on it and probably mortgage payments on it all while there is absolutely no income to offset those costs.

A good property manager or management company will have a pool of prospective, prescreened and prequalified renters that they can contact to rent your property. Since part of our job is to keep your property well maintained, your tenants will be happy and less likely to leave in the first place.

Finds you high quality tenants

Another way we keep it rented is by finding your higher quality tenants. Bad tenants are a nightmare not just for the aggravation, but also for the expenses of unpaid rent, costs to evict them and any damage to the property. They can suck money right out of your wallet. It’s almost worse than a vacant property.

A property manager will vet prospective tenants for you. They will thoroughly check them out, including a criminal background check, verification of employment and review of his or her rental history. They will know the right questions to ask their employer and previous landlords to get the answers needed to screen them in or out.

Have you ever heard of “professional tenants”? They are scammers who get into the property, never pay rent and make it incredibly hard to evict them because they file lawsuits claiming discrimination.

Property managers are used to looking for this and weeding them out. Not to mention that they do know the Fair Housing laws and will be sure not to violate them.

Property management and maintenance and repairs

Repairs and maintenance can be expensive. A property manager can seriously save you some money. If they have their own maintenance crew, that is a huge help. Often, their services are included in your monthly fees, saving you this expense altogether. If they don’t, or the job is bigger or more extensive than maintenance staff can handle, the property manager will have a network of licensed, bonded and insured contractors.

Since we deal in volume, we can usually secure reduced rates for the contractor’s services.

Now onto the actual money to be made

A property manager will have an established and successful rent collection process. Live by the rule that if you give a tenant an inch they will take a mile.

Remember that you need a consistent cash flow and while life happens, it shouldn’t happen to your bottom line. The best part is that the property manager is the one that has to hear the sob stories, not you! They are much better at being impervious to the drama and enforcing the lease.

Let’s not forget the lease itself

They will have a standard lease they successfully use with their managed properties. One less thing to worry about! The property manager will get it signed and handle renewals of the lease.

This is important because if the lease isn’t renewed, but the tenant holds over, they become a month to month tenant. That will cause its own raft of problems. They will make sure it is enforced, and also make sure the lease doesn’t violate any laws.

Inspections

Lastly, we will handle any necessary inspections. In order to maintain your property someone needs to regularly inspect it. Any small issues will be caught and fixed before they become big, more expensive ones. These inspections are part of your monthly fee and will save a lot of money in repairs.

Save some money!

So save yourself a bucket of cash and hire a property manager. It will be the second best decision you will make as an investment property owner.

5 Ways A Property Manager Can Save You Money...Congratulations! You jumped into being an investment property owner. Great decision. Now time to make another great decision... hire a property manager.

What Questions Should You Ask Your Property Management Company?

Congratulations! You are now an investment property owner. Now you need a property management company to help you with your property.

What Questions Should You Ask Your Property Management Company?When you are interviewing prospective companies, do you know what questions you should ask? Here are some good ones.

Questions To Ask Your Property Management Company

About The Property Manager

  1. How long have you been a property manager? The longer they have been in business, the better their track record can be proven to you.
  2. What kinds of properties do you manage and how many are you currently managing?Ask this because you want to have a property management company that is familiar with the ins and outs of leasing out your property. If they mostly manage apartment complexes and you have a single family home, that could be an issue. You also want to be sure that they aren’t over extended meaning response times will be slow.
  3. What associations do you belong to? This could include local chambers of commerce, Better Business Bureau, etc. They can be a font of information about their business practices.

Vacancy Questions

  1. How many vacancies do you currently have and how long does it take you to fill each? Obviously, a higher vacancy rate will mean something is amiss. Also, it will tell you how long your property may remain unrented.
  2. Can I see your current lease or have my attorney review it? If they aren’t willing to let you see or have their form lease look elsewhere. Violating local and federal laws with tenancy can be a huge problem.

Inspections & Repairs

  1. How often do you inspect properties? Keeping a regular inspection schedule will mean your property will be maintained properly.
  2. What process do you follow for repairs to the property?
  3. Do you set the limit for repair costs before consulting me or do I?
  4. Do you get competitive rates from your contractors?
  5. What is the bid process for large repairs?

Payment Questions

  1. What are your policies surrounding collecting rents?
  2. How late do you allow people to pay?
  3. Do you allow them to pay electronically?
  4. When will I receive payments?
  5. What are your eviction procedures and how often do you have to evict?

Property Management Fee questions:

  1. What are your management fees?
  2. What other fees do you charge (i.e. for eviction, renewal, marketing, contract cancellation and/or account set up)?
  3. Do you charge to find a new tenant? Is there a fee when the unit is vacant?

Selling Questions

  1. If I sell the property, do you handle notices to the tenants?
  2. Do I have to list it for sale with you (if it’s a real estate company that is managing it)?
  3. What is your screening process for tenants?

This is a really good list to get you started picking a property manager! If you are looking for a Denver area property manager, give Tena D a call today! 303-452-5853

Do Property Management Companies Handle Evictions?

It’s a sad reality when you have an investment property, having to evict a tenant. Whether you are evicting a tenant due to nonpayment of rent or violation of other parts of their lease, landlord/tenant law can be confusing.

If you don’t get it right the first time, it can become a colossal mess that leaves you with all of the problems. Since you don’t have a law degree, or the time to understand the ins and outs of the system, what can you do?

Property management company helps

Do Property Management Companies Handle Evictions?Your best bet is to hire a property management company. Part of their job is to help you not only find tenants, but handle evictions as well.

You know that a property management company handles your property upkeep and maintenance. That is a big part of what you hired them to do. It’s also an important part of keeping your property in the green and improving its value.

Property management duties

Part of that upkeep is making sure that your property is making money and keeping non-paying tenants from doing damage to it. That means knowing how to evict them quickly and legally.

Property management companies are experienced in these matters. They have handled many of them and have lawyers to make sure they are done correctly and to the letter of the law. They will have that bad apple out of your way in record time!

Don’t leave this important process to chance. Have a professional handle it for you and get it done right.

What Does A “Good” Property Management Company Do?

You are a landlord in need of a property manager, but there are so many out there. So how do you decide? What does a good property management company do so you know who to choose?

What Does A Good Property Manager Do?

A property manager’s main job is to manage, repair and

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maintain an owner’s property all while keeping the hassle to the tenant and landlord and expense to the landlord to a minimum.

Property owners are renting a property in order to fulfill a goal: pay the mortgage on it and make a profit, keep it from being empty which costs money in ongoing expenses and lost revenue and keep the property in good shape so when it’s time to sell it’s ready.

A well maintained property keeps its value, and also keeps the tenant happy and paying rent.

The property manager is who your tenants can call in an emergency. A proactive property manager has the skills to keep the emergencies from happening, or have the skills to fix most things keeping those exorbitant repair bills from happening.

The property manager also deals face to face with the tenants on rent issues, and, if necessary, has a “back up” list of tenants to fill in an unexpected vacancy. For the non-paying tenant, the property manager deals with the eviction process for you.

What Do Property Managers Charge?

The management company will charge a fee to do these things, so you will need to be sure you find one that is reliable for the money you pay them. But the fee is worth the peace of mind you will have knowing that your property or properties are well cared for and you won’t be having those nightmare situations quite as often!

Property management fees can range from 10%-15% of the rental price and may have a “signup cost” when you sign on.

Bottom line, the maintained value of the property and continued rental due to the efforts of the management company to collect the rent, and to keep the property from being vacant, is worth the cost of the of the service.

If you would like to work with a good property management company in the Denver area, give Denver Realty and Rentals a call today! 303-452-5853