If you have been a real estate investor for a long time, you may have been told by an investor friend that you need to hire a real estate management firm. There’s a good chance you’ve considered saying “yes” to their suggestions as well. Not every investor has the time to manage the unit (and the tenants who join it) on their own, so it’s nice to be able to delegate some of those tasks to a managing agent.
The catch is that South Florida property management companies tend to be expensive, but there is a plausible explanation for that. In this article, we’ll share some of the benefits of hiring a real estate manager so you can decide if it’s worth the cost. (Spoiler warning: it is.)
What is a property management company?
A property management company is a third-party contractor that manages the day-to-day operations of a residential, commercial, or rental industrial property. Generally, a property management agent is assigned to look after repairs, maintenance, and so on. They may also be assigned to manage tenants in residential rentals, such as screening applicants, collecting rent, managing complaints, and so on.
How much does professional property management cost?
The fees charged by property management companies depend on the scope of their services, as well as the markets they serve. Yet on average, they charge ten percent of the total rent collected. In some cases, property management companies may also take a portion of a tenant’s first rent in addition to their standard fees.
It should be noted that property management fees may be higher for short-term rentals such as Airbnbs. This is because managing short-term rentals requires more work than long-term rentals. For example, if you rent a beach house, your property manager should be able to find some short-term tenants to avoid vacancies. Screening multiple tenants a year is more time-consuming than screening just one tenant, which is why they charge higher rates.
Please note that this does not apply to every investment property management company. Costs and services vary, which is why you need to shop around to compare real estate management agents around you.
What do property managers do?
If you’re not convinced of the value that South Florida property managers bring, you need to understand what they do.
#1 Fill in the blanks
One of the struggles of real estate investors is dealing with tenant turnover. When a tenant moves, you need to find a replacement tenant quickly, otherwise, you will start to lose rental income. The property management agent not only monitors the transfer of tenants but also advertises the property to prospective tenants. They also take on the heavy task of conducting background checks, which involve contacting previous tenant landlords, checking their credit scores, and so on.
Furthermore, when you hire a South Florida property management agent, you benefit from a thorough tenant screening process that follows the Fair Housing Act (FHA). That way, you can make sure that your tenant screening process complies with the law so that you won’t lose out in a lawsuit.
#2 Interact with tenants
As a real estate investor, you should consider your rent as a business and your tenant as a customer. With that, you need to provide customer service.
Property management requires interaction with tenants around the clock. You start by entering your tenants, then you proceed to collect rent from your tenants, and sometimes, you have to deal with evicting your tenants. If this seems too time-consuming for you, that’s where real estate management firms come in.
Property managers collect rent, schedule inspections, deal with complaints, and more. They are trained to deal with all types of tenants - even those who want to do it their way. Property managers are always professional because they understand that the way they treat your tenants reflects your rental business.
#3 Carry out repairs and maintenance
Over time, your property will show signs of wear and tear (and in severe situations, damage) that you need to resolve. When the time comes, you can have an investment manager by your side to get third-party services at competitive rates. This is because they have been in the industry for many years and have already created a network of reputable vendors.
If there is a problem, your tenant will be able to contact your managing agent, who will then coordinate with a third-party vendor to resolve the matter in no time. They no longer have to go through you, and in turn, you no longer have to be bothered by your tenant’s endless demands.
In short, your property management agent will not only oversee maintenance and repairs but will also help you save a significant amount of money.
# 4 Keep a record of everything
There are a large number of papers involved in renting real estate. You need to document everything to enjoy a smooth tax season and to protect yourself in case your tenants decide to sue. For example, if an applicant claims that they have been discriminated against during the screening process, you will be able to deny it as long as you have the documents.
Property management companies are tasked with maintaining your bookkeeping records and complying with various data privacy laws. They protect your current and past tenant data and ensure all parties ’information is protected at all times.
What else do property managers do?
As we mentioned earlier, the services provided by property management agents vary. Some firms offer a foundation, while others offer the full spectrum of property management.
The last example is Luxury Property Care, a specialist property management company from South Florida. As a full-service property management company, we stand ready to provide all the services on this list - and more. That’s because we understand that no two properties are the same. Whatever your investment property needs, we create custom management plans designed to meet your goals.
Black Label Commercial Group is extremely proud to offer the best Commercial Property Management service in Houston, TX.
Black Label Property Management is fully equipped to manage your tenants and commercial properties from start to finish.
Our services include property maintenance and compliance, vacancy marketing, and tenant placement, rent collection and accounting, on-call property managers, web-based portals for property owners and tenants, along with other commercial rental management services.
If you are a landlord or letting agent, you may sometimes struggle to find new tenants, particularly at the price you would like to charge.
We look at the most common reasons tenants are put off renting a property and what you can do.
Most of the time the solution is very straightforward and although it may require some hard work and cost, it is usually well worth the effort.Dirt and MessIt goes without saying that no one is going to be attracted to a dirty property.
They may also be put off because clutter usually makes rooms look smaller and lots of space is always a plus when renting a property.
Sometimes a fresh pair of eyes can help you see your property without any personal attachment to items that you have on display.
However, it is also important that you don’t go overboard with this.
If you are new in the rental business and you want to know more about this, then really you will become the successful owner of the rental units and the income will be more because you have the interest in the root problems and also your rights.
You can’t just jump to any conclusion; do the right property management following every step.
Reasons to do the eviction
When the tenants start staying at the property, there the lease documentation must have been signed mentioning all the terms.
If the property is used for the purposes that are strictly prohibited or they don’t just use any area for making money to start the works, then obviously, this will be the reason to evict the tenants.
The neighbors are keeping complaining about the loud noises, party and more but they just follow their own rules, no importance is given to the same, then it will be highly needed to evict them and that to be from the immediately.
