Real estate investors are highly self-sufficient, independent thinkers who ask a lot of great questions. They want to know where their money is going, what benefits they’ll receive when paying for a service, and how that translates into building a portfolio that provides security and wealth. Our favorite question, of course, is: What does a property manager do?
Here’s a quick list of everything that great property managers can do for real estate investors, in order of importance.
Generate positive cash flow
Investors take a risk buying rental properties, and a good property manager understands that risk and knows that time and occupancy rates are of the essence. Here’s how property managers generate cash flow for investors quickly and reliably:
- Set rents that are appealing to the local market
- Market properties to a local target audience looking to rent
- Select applicants who will pay the rent, on time, every month
- Collect the rent from all tenants
It’s all about the rent, and collecting that rent depends on a lot of factors that a reliable property management company can manage on a daily basis so that owners see positive cash flow.
Protect landlords from costly legal and tax situations
Laws in place to protect tenants and property owners vary from state to state, and even within local municipalities. Those laws are in place to protect everyone from unfair or discriminatory housing practices, and it’s a property manager’s job to follow local and state laws when vetting tenant applications and writing leases, collecting rent, and even handling evictions.
In addition to following local and state laws regarding landlord-tenant agreements, property managers also provide monthly income and expenditure reports that keep property owners apprised of a property’s performance. That information helps owners make important decisions like when to invest in an upgrade or renovation, or even when to sell a property to maximize profit.
Property managers also provide owners with tax documents necessary for annual IRS filing. Those include annual investment property expense reports and 1099 forms so owners can claim rental property income.
Keep properties in good repair
A property that is well-maintained will provide rental income much more reliably than one that’s allowed to fall into disrepair. Property managers make sure that valuable rental investments continue to provide owners with cash flow by regularly providing the following services:
- Regularly scheduled inspections
- Emergency repairs
- Upgrade recommendations and consulting
Finding a property management company that offers comprehensive property management services doesn’t have to be time-consuming. Contact us today to learn more about how Class A Management can relieve you of some of the burden of rental ownership while protecting your investment and helping grow your portfolio. It’s what we do.