Being a landlord, especially in a hot rental property area like Toronto is not for the faint of heart. While rental property can be rewarding and positive investment experience, the reality is that it is a lot of hard work. You are not only managing properties, but tenants as well, and that can quickly become an overwhelming responsibility. Hiring a professional property manager can be an excellent solution for owners and landlords who are either inexperienced, overwhelmed with the upkeep and maintenance of their investments, or simply don’t have the time it takes to make that investment successful. The following are some of the top 10 reasons to hire a professional property manager, and why the benefits of doing so definitely outweigh the costs involved.
1. Property Managers have Knowledge of the Rental Market, Rates and Property Values
A professional property manager understands, and if familiar with the local rental markets, and understands how to get you the maximum rate possible for your rental units. If you misjudge the market and price your units too high, they will sit empty, sometimes for months at a time, price the units too low, and you will get stuck in a situation where your investment returns are not what you hoped they would be.
2. Property Managers have Marketing Expertise
Professional Property Managers have an extensive network of rental advertising and marketing know-how established through years of experience and know how to best advertise and promote your property to get you the maximum exposure you need to find the ideal tenants. Finding the right tenant, and finding them faster reduces vacancies, which results in better cash flow and maximized investment returns.
3. Finding the Right Tenants
A Professional Property Manager knows that good tenants can either make or break a real estate investment. They have experience advertising for the best tenants, and experience in interviewing and determining which ones will be the best fit for your property. Screening processes should include checking and verifying rental history, past eviction history, rental references, employment references, credit score checks, and other references as necessary. A solid tenant is the foundation of your investment success, and establishing and maintaining relationships with good tenants is something a Professional Property Manager knows all about.
4. Handing Tenant Enquiries and Emergency Calls
This is the major reason that people decide to hire a professional property manager in the first place. Most investors don’t want to be on call 24-7, to handle all the maintenance and repair requests that may come in, especially in the middle of the night, or when you are on vacation with your family. Property managers take care of ALL calls from your tenants, allowing you to spend your time doing the things that make you successful, and doing the things you love.
5. Extensive Network of Vendors and Professional Services
A Property Manager that has been around a while will have a large network of proven suppliers, contractors and vendors that have proven reliable and trustworthy in other circumstances and with other properties. These vendors will give you access to quality work at reasonable (and sometimes preferred) rates. Since these vendors have already proven themselves you can avoid the costly risks of trusting your time sensitive repairs and maintenance to strangers, and hoping that you “guessed right” in choosing one. Often times, because your Property Manager is a repeat customer, you will have access to preffered rates and discounts that you would otherwise have been unable to negotiate on your own. Using a well connected, Professional Property Manager to deal with maintenance and repairs can save you money, and more importantly, save you time.
6. Management of Day-To-Day or Month-To-Month Duties
A good Property Manager will have efficient systems to manage everything that will be required to make your investment a successful one. Such services and duties might include: Rent Collection, late notices, property inspections, monthly financial reporting, property bill payment, property notices and repair or maintenance coordination. Having efficient proven systems in place not only reduces risk and problems, but also directly addresses problems if they do arise, and deals with them quickly, and to the owner and tenants’ satisfaction. Time is money, so saving time dealing with daily operational issues directly goes to your bottom line, and maximizes your return on investment.
7. Documenting the Property
Professional Property Managers perform inspections and document the condition of your units before, during, and after each tenant. Problems or issues at are found during inspections can quickly be dealt with prior to them turning into expensive issues, ones that could increase vacancies, or result in issues with your tenants and successful rent collection. Disputes with tenants over repair issues are dramatically reduces when the proper documentation and record keeping is a normal part of your ongoing business dealings.
8. Maintain and Provide Accounting Reports
Professional Managers provide financial reports of your properties income and expenses on a monthly basis, and in a yearly report. Organized and complete financial reporting streamlines your processes during tax season, and having a manager keep up to date records means you will never again spend countless hours hunting for receipts and documents when you need them. As well, most management fees are tax deductible.
9. Multiple Units
This may not apply to all, especially the first time or small investor, but many landlords and property owners have several properties spread out over one or more geographic region. The more units, the more potential property and maintenance issues you will have to contend with, not to mention the travel time looking after all your properties. In a multi unit situation, time is the big issue, and a professional property manager with the expertise to look after your investments and tenants will save you time, and ultimately save you money.
10. Provide Peace of Mind
Ultimately, a great property manager, who is skilled knowledgeable and experienced give you the ability to relax, and let your investment do what it was intended to do, make you money for the long term.
Property Managers who are extensively networked with vendors, understand marketing, and are experienced at finding you qualified tenants at the optimal rental rates will save you time, money, and make your investment experience an enjoyable one.