Property owners, large and small, appreciate the value that property managers can add to their property to increase their investment return with less stress and hassle. Good property managers are assets that can positively impact your bottom line. 

For most property owners, the benefits of adding property managers will far outweigh the costs.

For others, it may not pay off, and here's why.

Whether self managed, or professionally managed, property management requires voluminous time, effort, as well as commitment. Even if you have only a few units, the DIY approach may not be practical in many cases. Spending several hours taking care of issues as they arise also makes trying to grow your investment portfolio (or just focusing on your day job) an arduous task.

With these points in mind, here we take a look at some critical tasks a property manager relieves you from. Allowing you to take care of your portfolio as well as negotiate new acquisitions.

Essential Tasks of a Property Manager

1. Advertising and marketing your property. 

A skilled and experienced property manager has the advantage of knowing the markets as well as can create exciting advertising materials. They will know how and where to market your property. Thereby creating short-term vacancies.

2. Conducting market studies for rental rates. 

Taking the time to select a qualified property management company pays off. They have the skills as well as resources to conduct the necessary market studies in your area to set reasonable rental rates, ensuring the highest profitability and the lowest vacancy rates.

3. Vetting tenants. 

Skilled property managers are experienced at vetting out tenants, while ensuring you stay in compliance with all Fair Housing Laws. They handle all the details—credit reports, criminal background, security checks, verifying employment, as well as obtaining prior landlord references.

4. Timely collections. 

Most people find it awkward to ask for money, especially when it comes to late payments. Property managers are seasoned at this sort of thing and are effective at maintaining on-time payments. They also understand that on-time payments are crucial to your cash flow.

5. Managing the tenant-landlord relationship. 

This is a crucial part of a property manager's job. They manage all aspects of the relationship, including routine inspections, routine and emergency maintenance, conflict resolution, as well as pursuing evictions.

6. Vendor relationships. 

The property manager's job encompasses other vital relationships as well. They include suppliers, contractors, maintenance workers, vendors, and tradespeople. They are also responsible for securing the best price as well as the highest quality of work on your behalf.

7. Costs. 

In exchange for their services, property managers typically charge a percentage of a property's monthly rental rate, which averages from 6-10%. This is generally less than adding staff to take care of your property.

8. Compliance—housing regulations/property laws. 

There are various laws and regulations applicable to renting and maintaining a rental property on the federal, state as well as local levels. Remaining in compliance with fair housing regulations (such as the ADA) can be daunting. A property manager can handle the requirements efficiently.

The bottom line:

By engaging a property manager, you can capitalize on the time saved. Your time is valuable to your success. A property manager can also take care of the day-to-day aspects of that your investment. Freeing you up to identify and negotiate future investment opportunities, or focus on your current day job, or just relax and enjoy family time.

Should you Hire a Property Management Company?

One of the most significant decisions for a landlord is hiring a property management company. A resident manager is perfect for smaller properties, but when landlords see the need for more help, that's when a property management company might make sense.

Property management companies earn their money, and they can be expensive. Giving due consideration to the following factors will help you determine if hiring a property management company is right for you.

Consider hiring a property management company if:

1. You have several properties or rental units. 

The larger the number of units and properties, the more likely you will benefit from a management company.

2. Suppose you don't live near your properties. 

If your rental properties are far from where you live, handling the issues from afar is challenging. A property management company can be indispensable when it comes to dealing with those issues.

3. Investment rentals. 

If rental property ownership is strictly an investment for you, consider hiring a property manager for your property. If you prefer to spend your time securing financing for renovations, searching for new properties, as well as growing your business, it would be worth hiring a management company.

4. You are overwhelmed with management tasks. 

If your business suddenly starts to grow as well as needs a significant amount of help to manage everything correctly, it might make sense to hire a management company.

5. Employer vs. Contractor.

A resident manager is an employee - you become an employer, and you will have to handle payroll as well as deal with other legal requirements and considerations. Neither the property management company nor its employees are considered your employees. They are independent contractors.

6. Affordable housing program. 

If you participate in and rent at least part of your property to tenants earning below a certain income level under the affordable housing program, things can get complex. These programs provide financial assistance to landlords. Such as low-interest loans, grants, as well as tax credits. To remain eligible to receive these funds, the landlord must be in compliance at all times with a complex set of rules. Hiring a property management company with the experience as well as expertise in these types of housing programs would probably serve you well.

Charlesgate Property Management is a local Boston, MA company servicing the Greater Boston metro area and Eastern Massachusetts market area. Our mission is to deliver the highest level of service through hospitality. A mindset that delivers only the best in accordance with what you say or do, as well as how it makes a resident feel. Our property management style adds value to your rental communities in four key ways:

• We proactively build communities of residents who become advocates for the property. This in turn lowers turnover rates, increases retention, as well as reduces vacancy.
• We help you manage costs more effectively by leveraging community as well as vendor relationships.
• We help you plan preventative maintenance as well as capital improvement plans to reduce property physical and financial risks.

Call Charlesgate Property Management today and let's discuss how we can help manage your rental properties efficiently and cost-effectively.