Busy landlords and rental property investors often hire property manager that is part of a property management company to run their rental business. We at LeaseWell work with both entrepreneurs and rental property landlords venturing into a property rental business, who face this consideration sooner or later. In this article we shall answer some pertinent questions regarding hiring property manager or property management company.
You will also get a good insight into what are their roles, what to expect from them and how to choose the best property management company or a great property manager for your real estate business or rental property in Calgary if you are a landlord.
Simplifying Property Management
In property management, some real estate brokers also operate as property managers. When this is the case, the real estate broker also lists, shows, and leases rental and vacation rentals. Property managers help landlord or vacation rental owner create budgets, advertise rental properties on best rental websites online and offline, qualify tenants, collect rent, comply with local real estate or landlord and tenant board laws, and maintain properties.
Preventive maintenance, interior, and exterior cleaning, and construction all fall within the scope of a property manager or the employing property management company’s responsibilities. Owners pay property managers aka property management company a fee or a percentage of the rent generated by a property while under management.
1. What is a property manager?
A property manager is hired to oversee the day-to-day operations of a unit of real estate. Property owners and real estate investors typically hire property manager or property management professional when they are unwilling or unable to manage the properties themselves. The cost of employing a property manager is tax-deductible against the income generated by the property. Apartment complexes, retail malls, and business offices are common types of commercial property that are run by the property management company.
2. What does a good property manager do?
The benefits of hiring a property manager sometime can far outweigh those of the do-it-yourself approach. It is often seen that most property owners decide to manage their own properties once they hear the costs of hiring a property management professional. However, several factors such as bad tenants, lack of time and commitment and inadequate knowledge to handle the intricacies of property management compel them to hire a property manager.
Sadly, many people realize the importance of hiring professional help only after facing business losses for a few years. Following are the benefits of getting a professional property manager or a reputed property management company to look after your property rental business;
A) Compliance and enforcement of rental terms
Essentially your property management professional or property management company managing the property needs to have the accurate knowledge and understanding of the laws, rules and regulations, legal matters as well as needed documentation pertaining to property rental business.
Right from the start of the business, the property manager will be able to ensure that your tenant follows the local, state and federal housing regulations. They will be able to provide the right legal advice if the need arises. Additionally, a property management company will ensure that all documentation related to maintenance, accounting, taxation and laws are in place.
B) Rental Market knowledge
A good property manager has the knowledge of the local rental market. He will know exactly how and where to market your property and put up the right advertisements at the right location to get you the best of the tenant pool. The property manager and the property management company will also know how to ensure shorter vacancy periods between two tenants.
C) Setting the right rent pricing
Many landowners argue that deciding on the rent is easy. They often look for a ballpark figure based on the going rates in the market. However, a property management company will have the tools and the means ready to conduct a thorough market research in addition to keeping market rates in mind. He will be able to strike a balance between getting a profitable income out the business while ensuring minimum vacancy periods
D) Finding good tenants
This is by far the most critical and important job of the property management company. It will know how to get you the right tenants. They will take on the responsibility of screening your tenant pool, getting the most relevant applications and conducting background, criminal as well security checks. They will also ensure that personal, employment and previous landlord reference checks are conducted. These responsibilities of the property manager will also ensure that precious time is saved.
E) Timely rent collection
The most important benefit of hiring a property manager is that your rents get collected in time. Collection of rent is the most tedious task associated with property rentals. A property rental property manager will be able to put up tried-and-tested collection systems as well as maintain on-time collections ensuring business profits.
F) Property maintenance and repairs
A property manager has the responsibility of managing most of the tenant-landlord relationship management duties. These include regular routine as well as emergency maintenance, inspections, etc.
G) Managing vendors
A property manager will have all the necessary contacts needed to maintain the property. He will be able to get hold of quality maintenance workers, contractors, tradesmen, suppliers, etc. on time and ensure they come at the best price.
H) Maximizing value for time and money
A property manager will not only manage the day-to-day running of the property, but also give valuable advice about investing in further properties to help the business grow. This ensures maximizing the time and money value in the long run. With so many benefits, hiring a property manager is worth every bit of the cost they come for in the longer run.
However, the next crucial consideration includes ensuring that you hire the right property manager and property management company to run your property rental business.
3. What services do property management companies offer for tenants?
Most property managers will take care of tenant apartment search start to finish, at no cost to you! If you are busy and don’t have time to spend scouring listings or scheduling tours. This is where they can help! Find the best apartments, condos and single family homes matching your busy schedule.
They will handle all of that work and more to present you with personally curated properties that tick all of your needs, schedule your property tours for you and even assist you with the whole rental processes and related paperwork without any cost to tenants as they get paid by the landlords to rent their properties
4. Frequently Asked Questions
1. How would a property management company in Calgary know what to charge for my property?
The best property management companies rely on current market data to arrive at the figure. They take into account the comparables for similar properties in the neighborhood. Property managers have tried and tested tools to help them in this regard. Property management companies also have solid experience and knowledge of the local rental markets, which enables them to get you the highest possible rent for your property.
2. How the best property management companies’ market rental properties in Calgary?
A good property management company in Calgary would generally employ a range of aggressive marketing strategies to ensure that the vacancies are filled at the earliest without any income loss. For a layman, it is usually not possible to use multiple marketing channels and strategies. This is where the best property management companies have an edge.
3. If we hire a property management company in Calgary, do we work with a direct contact?
The biggest apprehension people have about hiring property management companies is that they may have to deal with a faceless entity and not a direct contact. However, this is not true. The best property management companies ensure that you deal with a direct contact for everything concerning your property.
4. How do property management companies ensure that the properties are properly taken care of?
Property management companies are in the business of ensuring that your property is in the best possible condition and providing you good, consistent rental income. They conduct regular inspection to ensure that tenants are taking care of the property, and they address any repair and maintenance issues that may have developed.
5. Do we lose control of our property if a property management company in Calgary manages my property?
No. The best property management companies listen to and follow landlord instructions thoroughly. They keep you updated periodically about the performance of your rental property investment and have your best interests in mind