The rental income generated by any rental property is directly proportional to both its physical appearance and marketing effectiveness. If you wish to increase your property’s value and attract high-level tenants, you must invest significantly in the right improvements: modern appliances, quality siding, insulation, indoor & outdoor amenities, lighting fixtures, etc. This doesn’t necessitate breaking the bank for extravagant purchases or extensive renovations. You just need insider knowledge of what your ideal tenant needs in a rental home.
How Professional Property Management Can Increase The Value Of Your Property
Professional property management will save you money, time, and stress, allowing you to enjoy your rental income passively- as it should be! Here’s how:
Property management companies serve as a one-stop solution for all your problems as a landlord. From maintenance, marketing, financial management, legal compliance- you name it! They have the technology, personnel, and expertise needed to keep your rental property in tip-top condition, advertise it, and price it. You need not worry about writing lease agreements, screening tenants, or collecting rent when you have a property manager on your payroll. The manager will do all those things for you within the ambits of the prevailing laws and regulations.
Let’s explain in detail how your hired property management team can increase the value of your property.
- Keeping your property up to scratch
Small maintenance issues (e.g. a tiny leak on the roof) can quickly morph into costly renovations if not fixed early enough. They can also threaten the safety of your tenants, precipitating unwanted injuries and lawsuits. But none of that will happen if you have a reputable property manager. A property manager has all the time and expertise needed to schedule inspections, spot problems early on, and fix them before they get serious.
That’s not all. If there’s a need for significant renovations, a property manager has the time and experience to vet independent contractors to ensure that you get value for money. And because they manage multiple buildings, they have invaluable insights into prevailing home improvement trends. They’ll advise you on the right additions to improve the value of your kitchens, bathrooms, outdoor spaces, etc. without going overboard.
- Compliance with safety regulations
Every country/state has its unique set of regulations for fire, gas, and electric safety. The regulations cover everything from smoke alarm installation, carbon monoxide detection, fire-safe furniture, and accessibility of escape routes. The appliances and accessories you supply to tenants must also be compliant with all set safety regulations. Your property won’t generate much rental income if it doesn’t meet these safety requirements or doesn’t stay up to date with any legislative changes. It can cost you heavily in terms of lawsuits, fines, penalties, and victim compensation if someone gets injured on your property.
Here’s the good news for you: Property managers undergo mandatory property safety management before getting their certifications and licenses. You won’t have to worry about non-compliance with safety regulations if your property is under the care of a certified property manager.
- Drawing up fair tenancy agreements
Tenancy agreements are regulated by a whole stack of legislation. Everything from rent agreements, deposits, eviction notices, etc. has to comply with your state’s tenant protection laws. But then, you have a business to run and profits to make even as you comply with tenant rights. Your property management company will help you do exactly that. They will optimize prices for you, collect rent on time, keep errant tenants in line, and handle evictions when necessary, all within the law. They will also draw up all the required paperwork for you and enforce the laws firmly but fairly.
- Getting quality tenants
A professional property manager can help you define the ideal tenant for your property and market effectively to that ideal client. The manager will also draw up comprehensive tenant application forms and screen potential tenants thoroughly. A thorough screening process will ensure that each tenant’s financial health is in order and that they don’t have an alarming criminal record.
When done well, the screening process should produce tenants who pay their rent on time, take their tenant responsibilities seriously, and take the best care of your property. Such tenants are also never in a hurry to vacate your property for as long as you’re treating them well. This translates to shorter vacancy time and a steady rental income.
- Good marketing and communication
Your property manager will ensure a quick turnaround time for all lease renewal processes, minimizing vacancies on your property. That’s not all. When a new tenant is moving in, the property manager will schedule tours, address any arising questions & concerns, and sometimes assist the tenant in setting up their new home.
When it comes to marketing, property managers have an impeccable understanding of real estate markets and trends. That enables them to craft compelling marketing materials and enhance your property’s visibility to the right audience. A good manager also works with professional photographers and other marketing experts to create effective marketing campaigns. They will post professional photos of your property on social media, premier listings, real estate websites, magazines, and prominent signboards. They know exactly where to find the ideal tenant and how to appeal to them.
Property marketing also touches on the experience that existing tenants have on your property. An experienced property manager will enhance your tenants’ experience by being available whenever they need help. The manager keeps everyone happy through honest and open communication. That makes every tenant’s stay at your property enjoyable and comfortable.
How to Find A Competent Property Manager
It’s important to look for property managers that operate within your county or state. Suppose you’re a property owner in Austin. You need to find a property manager in Austin who’s familiar with local codes, property laws, culture, and the entire real estate market in Austin. There are a few other qualifications you should need to consider:
- Their reputation: A reputable property manager should have a rating of above B on the Better Business Bureau (BBB) website.
- High-quality referrals: Is there a real estate agent you know and trust? That agent might know good property managers. Or do you have a friend or a family member who runs a successful property rental business with the help of property managers? His/her referrals have to be of great quality.
- Licenses: Is the property manager licensed under your state’s property management laws?
- Proof of low vacancy rates for previously managed properties.
- Shared morals and values- you want to work with a management company that sees people and the world in the same way you do.
- Availability of efficient management systems and policies.
- A large client base. This means the manager is experienced, well-connected, and has great customer service.
- Insurance covers: General liability, errors & omissions (O&E), property-casualty, and any other insurance covers you think are necessary.
- Certification by reputable organizations such as the National Association of Residential Property Managers (NARPM).
- Specialized experience for your specific type and size of investment.
Owning a rental property is very rewarding when you manage it right. You must take deliberate steps to maximize your profit, particularly on matters of inspection & maintenance, tenant screening, marketing, and legal compliance. Doing that isn’t exactly a piece of cake. That’s why you should hire a professional property manager to do all the heavy lifting for you as you enjoy your investment.