Investing is multifamily real estate is complex and there’s lots at stake. You need expert help, and not just in the buying and selling, in the property management too. Here are six great situations where a professional property manager is the right call!
Six Situations Where a Property Management Company Can Save You Time and Money
While many individuals are tempted to follow the DIY route by becoming their own landlords, there are several situations where a property management company is better equipped to deliver stronger profit margins. If you struggle with any of the following situations as a landlord, you could greatly benefit from working with a trusted property manager.
Multifamily real estate owners can see “stronger profit margins” by using a property management company, says Jason Falcon, owner of LEAP Property Management, writing for National Real Estate Investor. He notes that:
…many individuals are tempted to follow the DIY route by becoming their own landlords, there are several situations where a property management company is better.
A Focus on Money
Falcon thinks the two most important places professional property manager (PM) can help are both related to money. First, he says, a PM can help set the right rent. They have, he says:
…access to the tools and information you need to set the optimal rental rate for an investment property. To determine this rate, the property manager needs to achieve the ideal balance between maximizing the monthly income levels and maintaining a low vacancy rate.
And with the right rates, comes collecting the rents on time. That’s a task that Falcon thinks “might seem …easy…”, but in reality “…is far more time-consuming and challenging than most landlords anticipate”.
And Doing Good Marketing
Just like with pricing the rentals, Falcon says professional PM firms have the tools to properly market your units—without the hassles that come a DIY approach.
Owner-managers turn to things like Craigslist to market their units, according to Falcon, often running head-on into
…the all too common phenomenon of price slashing. People turn to Craigslist looking for a bargain, meaning they are less likely to pay the full price.
Due to a lack of experience with real estate marketing and price negotiation, landlords are more likely to experience price slashing and take the first offer that walks through the door. Property managers can help you successfully market your rental properties to the right group of tenants. They can also market rental properties on a wide variety of real estate search engines, as well as the local MLS.
Keeping You Out Of Trouble And Leveraging Your Time
With all the laws related to landlord/tenant relations, it’s something that professional knowledge really helps with: applications, evictions, damages.
Most of all, Falcon thinks, professional property managers help you expand your reach and maximize your time.
Instead of only being able to “invest in properties located within a tight radius of your home”, using a PM allows you to expand your reach. His point:
Unless you want to spend the majority of your day driving around from property to property, you are better off hiring a property manager who specializes in the entire area.
He closes by coming back to time and money, saying:
The old adage, “time is money,” is all too true in the world of real estate investments. A property manager is best equipped to handle the day-to-day aspects of managing your investment property, which means that you are free to spend your time identifying additional investment opportunities. By working with a property manager, you can increase the profitability of your time and enjoy the monetary benefits that ensue.
Closing Things Up
Whether it’s setting rental rates, handling an eviction, or the buying and selling of multifamily real estate, you need professional help. René Nelson and the staff of commercial real estate experts at Pacwest Commercial Real Estate are ready and waiting to answer all your questions. Give them a call today at 541-912-6583 to get started!
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