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.

Owner Behaviour Sets The Tone For Your Property Management Business

Have you ever heard that old saying that the customer is always right? Well, if you’re a property manager or run a property management business, owner behavior will certainly set the tenor of the relationship. It may even decide whether a property owner client stays a client! Not sure what I mean?

Here’s an example

Owner Behaviour Sets The Tone For Your Property Management BusinessYou are managing a property that is a single family home. The family is a typical one: mom, dad, 2 kids. Your property owner insisted on a pet free home, so their lease specifies no pets.

The family has given you, the property manager, no indication that they have a pet. You inspect the property regularly and don’t find any. Unfortunately your client has it in his head that the family has a cat, dog and other various pets in the home and won’t take your word for it that they don’t.

Their lease also says they, the tenants, are entitled to quiet use and enjoyment of the property and advance notice for inspections. Now guess who keeps showing up unannounced to “inspect” the property? Yes, the owner, their landlord.

A ripple effect

Whether there is a problem or not, the landlord can’t just drop in unannounced. Neither can you, the property manager. You know that. You’ve tried to explain it to your client. What the client’s behavior will cause is a ripple effect.

First, if he has you try and evict the tenant, they will have a claim against both you and the landlord for violating the lease as well. Down the line it could damage your business. You, as the property manager, will suffer. In the eyes of the tenant you are the landlord. You are an agent for the landlord and his bad behavior will reflect on you.

Do some initial screening

The answer? Screen your property owners. Set ground rules for what they may do if you are managing their properties. If they don’t like them, don’t take the client on. If they can’t abide them after you take over management, fire them. Don’t let your business suffer because of a bad client.

5 Ways Property Managers Make Real Estate Investors Lives Better

You invest in real estate and have a few rental properties. You’re trying to decide whether to hire a property manager to help you out. So how can a property manager make your life better?

Financially

5 Ways Property Managers Make Real Estate Investors Lives BetterFirst, a property manager can help you financially. First, they are more in touch with rental rates in the area or areas where your rental property or properties are located.

If you overprice, no one will rent, if you underprice you are cheating yourself. A good property management company will conduct a thorough market study in order to set a rental price for your property. They will also collect and deposit your rental payments. That will relieve you of the hassle of chasing down tenants who may be late or no-pay.

But before you get to the rent collection issues, getting the property rented for you is right up their alley.

They will market the property, do background and financial checks on prospective tenants and get the property rented. Finding the right tenant for you also means keeping the property rented and keeping your income flowing.

Maintenance: scheduled and emergencies

Keeping those tenants happy is also a huge part of keeping them. Having a property manager means having someone available for those emergency maintenance calls. They will handle regular maintenance, inspect the property and manage any situations where conflict resolution is required. That keeps your property in good condition. They know the best contractors, tradesmen and suppliers who will do quality work on your property.

Laws and regulations

Even more important, they will know the housing laws and regulations inside and out. This knowledge will keep you out of hot water with local, state and federal officials. Between regulations on rental discrimination and fair housing regulations and requirements (from the ADA) there is a lot to remember. Can you keep on top of it all?

Using a property manager is a smart decision. Don’t go it alone.

Looking for a great property manager in the Denver Metro area? Give Tena D a call today! 303-452-5853

Denver Luxury Home Property Management – Why Hire A “Hands On” Rental Agent

You know having a property manager is a good idea, but should you hire a hands on rental agent? After all, can’t your property manager handle that too? In some cases, yes, but a good rental agent can be a great asset to getting your property or properties rented, while your property manager helps to keep them rented.

“Rental agent” and “property manager”

Denver Luxury Home Property Management - Why Hire A "Hands On" Rental AgentOften the terms “rental agent” and “property manager” are used interchangeably. Sometimes they are interchangeable. However, there are times they shouldn’t be, and you should hire a professional to handle just the leasing of your rental property, not the ongoing management. A rental agent provides specific services dealing with the rental of your property or properties. These can include market research to fix the pricing for the monthly rent; advertising the vacancy; showing the unit to tenants; and writing up the lease contract and getting it signed.

Find tenants

A rental agent might have more resources available to find tenants. They are dealing with people daily who are looking for someplace to live. They have marketing resources available for real estate and it’s their specialty. They understand the things that people are looking for when they are trying to find a new home, whether purchased or rented. Use that knowledge to your advantage.

Provide services

Property managers can also do the same things a rental agent does, but they are better suited to provide services like collecting rent; conducting periodic property inspections; taking care of maintenance and repair; managing the tenant relationship; handling monthly accounting and preparing year-end tax reports. (disclosure Denver Realty and Rentals is a full service Denver Property Management company)

It is possible that you will need both types of services from time-to-time. If you would like to find out more about Denver Rental Property Management services, give Tena D. a call today! (303) 452-5853