Why It Makes Good Sense To Hire A Property Management Company

Owning a rental property is one of the strongest investment options available for generating long-term income. There are naturally day-to-day duties and responsibilities connected with maintaining the property, dealing with tenants, and any other issues that arise. These are usually manageable and not too time-consuming when it involves only a single property. But once you get into the upkeep of a portfolio of multiple properties, the responsibilities can become more onerous. Your investment creates more stress and worry than you had bargained for, and the project is no longer enjoyable. Before things ever get that bad, it’s time to engage the services of a professional property management company.

Typically, the property manager takes responsibility for the routine tasks that take up the most time and hassle for a property owner, so you are free to reap the rewards and enjoy your investment. Screening potential tenants, dealing with contracts, collecting rent and dealing with problems with tenants, repairs on site and ongoing maintenance are can all be handled impartially by property management companies. Many property managers are flexible and can offer a partial service for a negotiable fee if you or your contacts are willing or able to do some of these tasks.

Usually, the property manager will interact directly with rental applicants and tenants on behalf of you, the property owner. They can arrange the marketing and advertising of rental properties, hosting of viewings and meeting interested candidates, screening prospective tenants and collecting deposits and rents. Property managers can be the first point of contact for ongoing repair issues or emergency maintenance. They are also responsible for dealing with tenant complaints and can assist you in legal and practical terms if you ever have to deal with an eviction.

It is a significant investment to employ a property management company, and this is a factor which leads so many property owners to attempt to take full responsibility themselves. But for property owners with a full-time job, having the time and availability to look after a portfolio of more than three rental units can become too much of a challenge. The management fees make more sense when compared with the potential income from a larger stable of properties, and the relief of leaving the hard work to a professional manager.

Absentee owners, or owners of a widely distributed portfolio of properties, may find that hiring a property manager in the local area is the only sensible option.

If you’d prefer not to have to attend a plumbing crisis at 3 AM, repair and decorate woodwork or manhandle leaking washing machines, then a good property manager will have the know-how and a network of trusted professional backup to tackle these and all manner of problems daily. If you feel property maintenance and calling on skilled people to organize it is beyond your skill set, then enlisting a property manager is a sensible option.

There’s a long list of issues that may arise with rental property. Using a property manager who’s seen them all before and dealt with them is the best way to prevent problems from becoming nasty, expensive or stress-inducing surprises, and ensuring that your experience of owning and letting a property remains an enjoyable one.

Property Management Phoenix AZ

Red Hawk Property Management

Should You Self Property Manage Or Put Up With A Property Manager Fee?

Most property owners are often faced with the question if it is cheaper to manage their property or whether leaving property managers to do it is a better option. While some consider managing their property so as to escape the extra fee of hiring property managers, it is worth that you know it is not all about the charge but what the fee has to do with the services. Hence to get the answer to the question as stated earlier, you need to consider all the factors that make you hire the property manager, such as the value of your time and get to see if the services provided by your manager are much more worth that the fees charged.

According to research, most property owners are on the move to hire property managers. There is an increase in the number of landlords who prefer to have property managers manage their rentals while there is a decrease in the number of those who manage their property.

I believe you are now wondering why such a trend and why opt to hire a property manager while you can do it for free. The reason behind this is simple. No one would consider going for an expensive option while you can get a cheaper option, which means that hiring a property manager is cheaper as compared to managing your property. However, how can this be true while you will pay a property manager and you don’t need to incur any fee by managing your property? Let’s have a discussion and discover why a property manager is worth your consideration.

Time is money

Managing your property when that isn’t your full-time job will take much of your time, not to mention that you will probably have to spend much of your valuable time dealing with tenants. This is likely going to make you lose much money especially if you have to leave your business to deal with your rental property residents’ issues. This can worsen if your rentals are too far from your residence or business area. However, no matter the situation you are in, you cannot forsake your tenants as this may just make you lose another income source which means that you will probably have to go out of your business for some time. Such situations will make you make losses on your business especially if you need to deal with your tenants frequently. To avoid losing your valuable time you should consider delegating some duties, the most convenient which is leaving property managers to oversee your property.

Knowledge of the law

Did you know that there are rules set for a property owner to abide by? Failure to comply with such codes will only lead to costly pitfalls. Being a property owner who has more valuable things to deal with, you probably will not have the time to research on such rules and regulations. Besides, keeping up to date with changes to such codes can be hard, which can cause you to deal with costly legal charges or even the loss of your property. To ensure that your property and every undertaking related to it is compliant with the law, hiring property managers is a good step to take as you can have the assurance that you will not fall in the illegal arms of the law. The reason behind this is that property managers keep track of the rules and regulations supposed to guide property owners, thereby ensuring that your rentals meet the required requirements.

Offsetting tax

Despite the fact that you ought to pay the fee arising after hiring a property manager, you can still raise your tax benefits. This results when the management fee is counteracted against your tax.
While there are several advantages of paying the extra fee and having experts manage your property, the choice on whether to incur the fee or to manage your property ultimately depends on you.

Make sure that you weigh the benefits of hiring property managers to the fee charged as well as the value of your time and ensure that you make the right choice.

Property Management Phoenix

Red Hawk Property Management

Do It Yourself Vs. Professional Property Management Companies

Property owners are often faced with several challenges, the major of which is making the decision on whether to take charge of their rental properties or whether to leave their management to a property management company. While each of the options has its pros and cons, professional property management companies have more advantage over owners due to their great experience. Keep reading and discover why property managers are a better option taking charge of your rental property’s management.

Understanding state and federal regulations

Let’s face it. You as a property owner cannot follow up on the legal requirement as compared to professional property managers who deal with rental properties on a daily basis. Even though you will have some idea concerning the local rules, the fact is that you will hardly stay up to date. Failure to follow the required regulations can place you in a danger of violating the law thereby endangering your property finances and yourself. By leaving property managers to take charge of your rentals, you can rest assured to have no issues with the law as a result of your property not staying on par with the necessary current codes.

Handling the renting process

Did you know that the rental process can be quite cumbersome but you ought to pass through it? Once your rental property is ready for occupation, you need to get potential tenants. This involves establishing a budget to advertise your 

rentals and getting to the real advertisement of your property which involves placing of rental ads. Once prospective renters show up, you need to deal with all information required from them to enable you to screen for the right tenants. You should get their employment information, personal references, previous address, background information, all of which can take much of your time. Besides, you should always avail yourself when these prospective clients need to issue their documents. If you are in full-time employment, you will end up losing many potential tenants as you might not be available when they need you. To stay safe, a property manager is better off taking charge of your property. After all, they are familiar with the rental process aspects.

Screening and selecting the best tenants

You do not want to involve your property with renters who will always give you a headache. However, failure to properly screen your tenants will just cause you to have stubborn renters. Without the experience and knowledge to distinguish those who give you true information versus those who lie, you will likely end up giving your rentals to untrustworthy persons. Besides, if you rush to pick tenants due to lack of enough time to screen all of them, you will also fall into the trap of accepting renters who will give you problems. Property managers can guarantee to give you the best tenants. They have the experience and knowledge to determine genuine residents after the interviewing process, therefore, giving you the guarantee of only getting the best renters.

Establishing rental rates

The amount of rent set for your property determines whether you will be successful to get the number of tenants you want for your rentals. Setting a price that is unrealistic only discourages residents from renting your property. After all, they consider apartments where they can save. In as much as you may have a value in mind of the price to set for your property, this amount may be unrealistic as compared to the market value. Property managers can set realistic rental rates for you, as they can access the current rental data to help establish the appropriate rates for your property.

Handling rent collection

Rent collection is something that you will have to deal with monthly. Despite the screening process as mentioned earlier, you will probably come across some tenants who pay late due to financial constraints or a bad month. Following up on late payments can give you a headache as this will interrupt your daily duties. Management companies will save you from handling all rent collection issues on your property. They will handle all monthly payments and late payers giving you a peace of mind.

Tenant communication

Dealing with complaints from tenants can be stressful, especially for a rental property owner who stays far from the rentals. You do not want to imagine having to travel all the way from your home or business just to go and get someone to deal with a plumbing or electrical issue on your property. With property managers, you can rest assured never to have to deal with small problems in the rentals, as they will have that catered for. They handle all day to day issues arising from the renters thereby giving you a peace of mind.

From this discussion, many benefits arise if you decide to leave property managers to oversee your property. They save much of your time allowing you to spend it on valuable things. Moreover, the amount of fee you pay to these professionals is much less than the value of their services. Hence if you are confused about getting a property management team to oversee the running of your rentals or whether to do it yourself, it is recommendable that you consider hiring a property manager.

Property Management Phoenix AZ

Red Hawk Property Management

Implementing Energy-Efficient Systems In Homes For Property Managers

If a property manager makes energy saving investments, they can save a large sum of money over time. It is important to save as much money as possible on energy costs when operating the property.

Real estate and property managers often spend a lot of money to make money so it is important to look for ways to save. The property manager can control the energy used by making some energy-saving investments. Here are some tips to reduce the spending on energy. These tips can offer some significant savings over time.

1. Purchase New Appliances

While many property managers look for the least expensive products it can cost them more in the long run. The cost of energy saving appliances may be higher at first but they use 50 percent less energy than regular appliances. Look for appliances that have the Energy Star rating. They have been proven to use less energy. This equals savings in the long run.

Look for the energy star logo when purchasing appliances.

2. Energy Management

If the energy output is not watched the price can go up very quickly. Managing the output is important but so is predicting future usage. As the market changes due to things such as whether having the right items and the correct information is needed. There are so many factors which affect property management that are beyond the control of a property manager. Spending on energy should not be included. When watching the output changes can be made as needed to save additional money.

3. Switch to LED

LED’S are 75 percent more energy efficient then other bulbs, they are weatherproof, and as an added bonus they are better for the environment. They last for a much longer period of time than regular bulbs as well. These bulbs may cost a little more but they will save money over time. There are also tax rebates and other incentives. Companies will often add the installation costs to the monthly electric bills. This will provide options on how to pay for the lights over time.

4. Retro Commission

Everything needs an inspection from time to time. The property should be inspected to see that it is operating at its peak performance. This is called retro-commissioning. Anything from the HVAC unit to the electrical systems can be inspected. This will reduce the amount of energy that the building is using. It may lower operating costs by at least 15 percent if not more. This may catch smaller issues before they become an expensive repair in the future. A property manager may have to invest in upgrades but the benefits in the long term can be well worth the cost.

If you are in charge of a real estate company or work as a property manager, then you know that saving money it important. Saving more means a higher profit. It takes planning and precision to save money. Smart spending can put you ahead of your competitors. These tips will help you come up with a business plan on how to save money and increase your profit in the long run.

Red Hawk Property Management