Your will have to ask yourself these question before investing into real-estate like should I manage my property, and should I hire a property manager. These are common question that many south Florida rental property owners ask and that’s because the way a rental property is managed can make all the difference to its success and profitability. Deciding who takes care of the property is an important decision.
Self-managing your property is better for those who have the time, skills, experience, and resources. Without any of these, self-managing your property can be very difficult and unsuccessful.
On the other hand, some property owners may decide to hire a property manager to take the responsibility off their hands so that they can enjoy their returns without having to deal with the hassle.
In today’s blog, we are going to compare the advantages of each option to help you make the right decision for your south Florida property. Having a good property manager can help you in the following areas down below.
Do You Have Time?
Do you have the time to manage and respond to any issues related to your rental property?
Having adequate time is key. Aside from tenant issues, you need ample time to carry out annual inspections and market your vacant units. A property manager can help you in this regard. You will have more free time because of the tasks and responsibilities the property manager will take care for you.
Every day that your property stays vacant will cost you money.
A property manager has the necessary tools and strategies that will help get your property the exposure it needs to be rented as quickly as possible.
Do You Have a Network?
Who knows the ins-and-outs of the rental property business better than a property manager?
A good property manager will have directly managed a few dozen properties in his career. During this period, they will probably have made relationships with suppliers allowing them to get you better prices on materials, contractors, and services.
Proper Money Management
An experienced property manager will be able to keep your property’s finances in order. Among other things, he or she will ensure that rent is collected on time and that operational expenses are handled properly.
Do Have Good Legal Backing Knowledge?
The landlord-tenant relationship is one that is guided by many laws. From the Federal Fair Housing Act to habitability laws to security deposit laws, understanding them is crucial. A good property management company is knowledgeable on all rental property-related legal matters.
Why Hire a Property Management Company?
A good property management company can be very beneficial for you and your rental property. With that said, no two property managers are created equal. As such, always do your due diligence prior to hiring one.
To improve your chances of selecting the right manager, you need to be cautious. Ideally, you want to ask your local apartment association or colleagues for some recommendations.
Here are some questions you would want to ask them down below.
- How do you market your clients’ rental properties? Look for a property manager that uses a variety of marketing strategies, from email and social media marketing to the use of “For Rent” signs and newspaper ads.
- Can you guarantee occupancy? One that can guarantee occupancy will likely have a good tenant screening process.
- What percentage of the tenants you manage renew their lease? As a baseline, look for a lease renewal percentage of no less than 80%.
- What is your average eviction rate? Look for a property management company with the lowest eviction rate. Broadly speaking, choose one that doesn’t exceed an eviction rate of 5%.
- How successful are you at retaining owners? If the company is retaining most of its clients, it essentially means that they are doing a good job. As such, look for an owner retention rate of more than 97%.
- How long have you been in the property management business? The longer a company has stayed in the business, the richer the experience they have.
As a south Florida investor, you must have a lease or rental agreement for your tenant. By follow a specific process to ensure it is successful and to avoid lawsuits.
We hope this post was helpful and informative! If you still have further questions, contact Lamar G Property On Us.