Why is property management so important when investing in real estate?
Tuesday Nov 14th, 2017
Investing in real estate is certainly not a spur of the moment decision. It is an outcome of well-calculated and well-studied choices of many opportunities. So why do some people ignore the second most important step to maintaining such an excellent investment, management?
Professional property management should be looked at as a money-saving method, because ultimately that’s exactly what it is. It’s a way to sustain the good investment you just made and make it grow bigger, because an investment should start giving back from day one.
So how can your investment start giving back so soon? In short, the answer is Property Management. Here’s why:
A property management company is a service provider that manages properties for a monthly fee. Its sole purpose is to make life easier for the owner and take care of day-to-day tasks that all types of properties require. Their typical tasks are:
- They provide multiple analyses of property and location to determine the appropriate rent level of your property.
- Advertise about the property in relevant medias.
- Carry out credit checks.
- Meet with potential tenants to show the property.
- Assessing and selecting maintenance companies to carry out necessary repairs and periodic maintenance.
- Assessing and selecting cleaning companies for the property’s common areas.
- Receiving and dealing with any tenant complaints.
- Assessing and selecting contractors to check all or parts of the property before and after the tenants move in.
- Dealing with evictions or any lawsuits.
- Rent collection.
- Recurring expenses payments, such as electricity and water.
- One-time payments such as repairs.
- Paying any property taxes.
- Paying any property installments.
- Paying profits to the owners.
The above are all tasks that every property owner can live without. All owners have their own jobs and families to worry about and have no time to carry out all the necessary duties to managing a property.
Please remember that I am always available to discuss all of your concerns and answer all of your questions.