Bardell Real Estate Logo
Benefits of Using a Property Management Company?

Benefits of Using a Property Management Company?

Benefits of Using a Property Management Company?

A competent property manager can add significant value to your investment, which is why many seasoned real estate investors will tell you that a good management company is worth their weight in gold.  Here are a few ways that a good property manager earns their keep:

 

Higher Quality Tenants

Think of tenant screening as the moat and draw bridge around your castle. It is certainly possible to get a bad tenant out of your home once they are in, but it’s a real hassle and you are so much better off never accepting them in the first place. A thorough screening process results in reliable tenants that:

  • Pay on time
  • Rent longer
  • Put less wear and tear on the unit
  • Generally cause less problems

      An experienced property management company has seen thousands of applications and knows how to quickly dig for the real facts about candidates and analyze that information for warning signs. By allowing a management company to handle the screening, you will also be shielding yourself from rental scams directed at owners, and discrimination lawsuits resulting from an inconsistent screening process. This kind of experience takes time, and insomuch as it means avoiding bad tenants, scams and lawsuits it is arguably one of the most significant benefits a property management company will provide.

      Fewer costly and time consuming legal problems

      Veteran landlords know it only takes one troublesome tenant to cause significant legal and financial headaches. A good property manager is armed with the knowledge of the latest landlord-tenant laws and will ensure that you are not leaving yourself vulnerable to a potential law suit. Each state and municipality have their own laws, these plus federal law cover a number of areas including but not limited to:

      • Tenant screening
      • Safety and property conditions of the property
      • Evictions
      • Inspections
      • Lease addendums
      • Terminating leases
      • Handling security deposits
      • Rent collection

      Avoiding a single law suit can more than pay for the property management fees, and spare you time and anguish.

      Shorter vacancy cycles

      A property manager will help you perform three critical tasks that affect how long it takes to fill your vacancies:

      • Improve and prepare the property for rent – A property manager will suggest and oversee cosmetic improvements that maximize revenue.
      • Determine the best rent rate – Too high and you are stuck waiting, to low and you’re losing money every month the tenant is in the unit. Determining the optimal price requires knowledge of the local market, data on recently sold comparables, and access to rental rate tools.
      • Effectively market your property – An experienced property management company has written hundreds of ads and understands what to say and where advertise in order to get a larger pool of candidates in a shorter period of time. Additionally because of their volume they can usually negotiate cheaper advertising rates both online and offline. Lastly, they are familiar with sales and know how to close when they field calls from prospects and take them on showings.

      Better tenant retention

      While its easy to see the effects of lost rent, there are other equally serious problems with a high tenant turnover rate. The turnover process involves a thorough cleaning, changing the locks, painting the walls and possibly new carpet or small repairs, not to mention all the effort associated with marketing, showing , screening and settling in a new tenant. This is a time-consuming and expensive process that can often be averted by keeping tenants happy and well cared for.

      A good property management company will have a time-tested tenant retention policy that ensures happy tenants with lengthy stays in your properties. These kinds of programs require a consistent, systematic approach, which is where a good property management company will shine.

      Tighter rent collection process

      The way you handle rent collection and late payments can be the difference between success and failure as a landlord. Collecting rent on time every month is the only way to maintain consistent cash-flow, and your tenants need to understand this is not negotiable. By hiring a property manager, you put a buffer between yourself and the tenant, and allow them to be the bad guy who has to listen to excuses, chase down rent, and when necessary, evict the person living in your property.

      If you let them, your tenants will walk all over you. They have to be trained to follow every part of the lease or deal with the consequences. Property managers have an advantage because tenants realize that they, unlike the owner, are only doing their job and are obligated to enforce the lease terms. Many property managers will tell you that it is considerably easier to manage other people’s units rather than their own for this reason.

      Regarding evictions, there are strict laws concerning the eviction process, and doing it wrong, or trying to evict a “professional tenant” can be a MAJOR fiasco. A good property management firm knows the law and has a good process for obtaining the best possible outcome given the circumstances. Never having to handle another eviction can be a compelling reason to consider hiring a property management company.

      Assistance with taxes

      A property management company can help you understand which deductions you can claim, as well as organize the necessary forms and documentation to make those claims. Additionally, the property management fees themselves are also tax deductible.

      Lower maintenance and repair costs

      Good maintenance and repairs keep tenants happy and preserve the value of your investment which make them a very important part of land-lording. By hiring a management firm you gain access to both their in-house maintenance staff, as well as their network of licensed, bonded and insured contractors who have already been vetted for good pricing and quality work. This can translate into significant savings compared to going through the yellow pages and hiring a handyman yourself. Not only is the firm able to get volume discounts on the work, they also know the contractors and understand maintenance issues such that they are capable of intelligently supervising the work.

      Increase the value of the investment

      Preventative maintenance is achieved through putting systems in place that catch and deal with maintenance and repair issues early on, before they grow into larger more costly problems. This requires a written maintenance check program, detailed maintenance documentation and regular maintenance visits. The management firm can also offer you suggestions and feedback on upgrades and modifications, both how they will affect the rent you can charge, as well as their impact on maintenance and insurance.

      Personal benefits for owners

      • Less stress – Avoid having to deal with middle of the night emergencies, chasing down rent, evicting people from your property, tenants who wreck your property, rental scams, lousy vendors, piles of paperwork.
      • More freedom – Live and invest wherever you want with the constraint of needing to be near your properties. Additionally you can live and travel without the requirement of always being available in the event that your tenants have a need you have to tend to. Once you have found a good management company, it doesn’t matter if you live in the same state. Some landlords live in other countries and simply collect their check every month without ever seeing the property.
      • Free up more of your time – Time is money, and for many investors, their time can be more profitably spent in areas other than servicing their properties. When you focus on asset management you’re working ON your business, when you manage your own properties you work IN it. Additionally you have more time to spend with family or friends doing things you enjoy.

      A final thought

      Of course, this is an ideal scenario.  These results can only be expected if a management company is competent, trustworthy and a good fit for your property.  A poor choice of a management company can produce many headaches of its own.

       

      Source: Managemyproperty.com

      Ready to make a Move?

      Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

       

      Pro and Cons of Hiring Property Management

      Pro and Cons of Hiring Property Management

      Pro and Cons of Hiring Property Management

      Pro and Cons of Hiring Property Management

       

      It’s a decision that most landlords will face at some point in their rental management career: to hire or not to hire a property manager? The question may arise when the landlord first considers renting his or her first property. Or it may come up as the business grows and the landlord adds additional properties to his or her portfolio. There are a number of pros and cons to consider whatever the specific situation, though the decision will generally boil down to time and money.

      What is a Property Manager?

      First, it’s important to understand what a property manager or property management company is and what they can do. A property manager is a third party who is hired to handle the daily operations of a real estate investment. Depending on the property manager, they can manage different property types, from single family homes to multi-unit dwellings.

      Many services will be turnkey operations, meaning the property management company will handle most issues from marketing your rental to collecting rent. However, it is possible to find property managers that may do most of the day-to-day work but leave some decisions or tasks to the landlord, based on how the relationship is negotiated.

      Many property managers can do the following, though this list is by no means exhaustive:

      • Advertise and market the property
      • Interview and screen potential tenants
      • Handle executing a lease agreement
      • Collect rent on behalf of the landlord
      • Manage maintenance and repairs

      Why Consider a Property Manager?

      There are several reasons why a landlord might consider hiring a property manager or management company. Perhaps the number of rental units in a portfolio has grown beyond a landlord’s ability to manage. If the property is in another city, state or even country, then it may be useful to have someone else manage the rental.

      A landlord may find that passive rental income is attractive but the job of managing a property or properties is not suitable to his or her skills, personality, etc. Or a landlord may want to control some aspects of the business—such as the vital task of finding and screening tenants—while allowing a property management company to work directly with the tenants on day-to-day issues such as maintenance and repairs.

      In any of those cases, it may be time to consider the pros and cons of hiring a property manager.

      Pros of Hiring a Property Manager

      There are a number of positive reasons to hire a property manager, most of which revolve around the desire to have an experienced party that can save a landlord time on a range of rental-related issues.

      Filling a vacancy

      An experienced property management company should have the resources and experience of the local rental market to quickly fill a vacancy. A good property management company will have a rigorous screening process in place like that offered by TransUnion SmartMove to ensure they find the best tenants possible.

      Setting the right rental rates

      As All Property Management states, “a good property management company will conduct a thorough market study in order to set a rental price for your property, ensuring that you achieve the perfect balance between maximizing monthly income and maintaining a low vacancy rate.”

      Managing vendor relationships

      A property management company will likely have preferred vendors that it works through for better rates for maintenance and repair issues. Theoretically, these vendors will perform quality work in order to maintain good relations with the property management company.

      Cons of Hiring a Property Manager

      Despite the benefits professional property management can offer, there are negative aspects that may cause some landlords to balk when it comes to turning over their rental units to a third party. Control and money are the bottom line here.

      Reduction in control

      A landlord pays a property manager to make decisions, but those may not be the same decisions that the landlord would make. In addition, a property management company may oversee dozens or even hundreds of rental units, meaning a property may not receive the same amount of attention as it might under the landlord directly.

      Screening process may lack rigor

      One of the keys to finding and retaining good clients is to implement a rigorous screening process, especially since the landlord may never meet the tenant if the property manager handles all of the arrangements. TransUnion SmartMove offers credit reports for landlords, tenant criminal background checks and eviction reports that help take the guesswork out of whether a tenant will be a good fit for your property.

      Property management costs

      This may be the single biggest factor in determining whether or not to hire a property manager. Basic management fees can vary from between 4 and 12 percent. But that’s not the end of the story. Some companies may require additional fees, including:

      • Vacancy fee: Some companies may charge a flat fee or the standard management fee even while a unit is vacant.
      • Setup fee: This covers the cost of opening a new account.
      • Leasing fee: This is a standard fee that covers the cost of getting a new tenant for a rental property. It can range from 25 to 100 percent of the first month’s rent, but averages about 50 percent, according to Manage My Property.
      • Other fees can include advertising, repairs and even lease renewal.

      How to Hire a Property Management Company

      If after weighing the pros and cons you decide that you would prefer to turn over your rental business to a property manager, the next step is to find the right company. This step is as critical as finding a good tenant, as you are entrusting your property and profit to a third-party.

      Depending on your location, you may have dozens of companies from which to choose. You can first narrow down your search by looking at reviews on websites such as Yelp and Angie’s List. A Google search will also turn up results with reviews. Select several of the best-rated companies to interview.

      There are a few key criteria to keep in mind from BiggerPockets:

      • How many units does the property manager or company already manage? It’s like a teacher managing students: The bigger the class, the less individualized attention a pupil may receive. You should research how many units the company manages and how many employees the company has dedicated to managing them. Of course, you may need to pay more if you want a more “boutique-sized” management company.
      • Ensure routine inspections are part of the property management agreement.
      • Ask about the tenant screening process. A good property management company should have a comprehensive screening process in place like the one offered by SmartMove.
      • Settle the fee structure for maintenance and other costs up front and put the agreement in writing. You will want to empower the property manager to spend up to a certain amount for incidental maintenance or repair issues but should cap the amount at what you feel is a comfortable threshold—$250 to $500 is standard.

      CONCLUSION

      The decision to hire a property manager will likely be a balance between time and money. If a landlord feels that managing his or her property portfolio is too time-consuming and can afford the expense of a property manager, then that may be the best decision. On the other hand, landlords who prefer hands-on management of rental units that are within a manageable distance to oversee, and has the time and skill to devote, may decide professional property management is too high a price to pay.

      Source : Mysmartmove.com

      Ready to make a Move?

      Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

       

      Here’s Where Florida’s Rental Markets Rank

      Here’s Where Florida’s Rental Markets Rank

      Here’s Where Florida’s Rental Markets Rank

      Here’s Where Florida’s Rental Markets Rank

      Miami charges the seventh-highest average rent in the nation and is No. 1 in Fla. at $2,846. Jacksonville is Fla.’s least expensive with rent averaging $1,748.

      Gainesville, Fla. – These are the highest and lowest rental housing markets across the nation, based on average monthly rent, from among 107 metropolitan areas studied.

      We’ve also included a list of Florida metro areas’ rankings. Data is from the Waller, Weeks and Johnson Rental Index, an ongoing project co-produced by the Florida Atlantic University Real Estate Initiative, Florida Gulf Coast University’s Lucas Institute for Real Estate Development & Finance, and the Alabama Center for Real Estate at the University of Alabama.

      10 areas in the U.S. with highest rent

      1. San Jose, California: $3,199

      2. San Francisco: $3,157

      3. Ventura, California: $3,014

      4. New York: $3,004

      5. San Diego: $2,946

      6. Los Angeles, Long Beach, Anaheim: $2,864

      7. Miami, Fort Lauderdale: $2,846

      8. Boston: $2,762

      9. (tie) Honolulu: $2,584

      9. (tie) Riverside, California: $2,584

      10 areas in the U.S. with lowest rent

      1. Youngstown, Ohio: $853

      2. Wichita, Kansas: $937

      3. McAllen, Texas: $1,051

      4. Little Rock, Arkansas: $1,059

      5. Des Moines, Iowa: $1,152

      6. Akron, Ohio: $1,162

      7. Toledo, Ohio: $1,175

      8. Omaha, Nebraska: $1,193

      9. Dayton, Ohio: $1,206

      10. Scranton, Pennsylvania: $1,207

      U.S. ranks for 10 Florida areas

      (National rank / monthly rent)

      7. Miami-Fort Lauderdale-West Palm Beach: $2,846

      13. North Port-Sarasota-Bradenton: $2,331

      14. Port St. Lucie: $2,266

      19. Fort Myers: $2,073

      20. Tampa: $2,055

      21. Orlando: $1,999

      29. Melbourne: $1,881

      35. Lakeland: $1,808

      39. Daytona Beach: $1,788

      44. Jacksonville: $1,748

      Year-over-year rent increase for 10 Florida areas

      (National rank / year-over-year change)

      1. Fort Myers: +32.38%

      2. Miami-Fort Lauderdale-West Palm Beach: +31.70%

      3. North Port-Sarasota-Bradenton: +30.88%

      5. Tampa: +26.93%

      6. Port St. Lucie: +25.54%

      8. Lakeland: +23.92%

      9. Orlando: +23.70%

      10. Melbourne: +22.46%

      11. Daytona Beach: +21.88%

      15. Jacksonville: +20.39%

      Source: Waller, Weeks and Johnson Rental Index as of June 2022

      © Copyright 2022, The Gainesville Sun, All Rights Reserved.

      Ready to make a Move?

      Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

       

      What Does A Good Property Management Company Do?

      What Does A Good Property Management Company Do?

      What Does A Good Property Management Company Do?

      What Does A Good Property Management Company Do?

       

      Are you a landlord or a real estate investor? One of the biggest decisions you will ever have to make is whether to use a property management company to maintain and oversee the daily operations of your property. Compared to landlords who prefer the do-it-yourself approach of management in order to save money, working with property management companies increases your chances of growing your properties bottom line and enhancing your rental portfolio.

      But what does a good property management company do? Here is a list of essential services you can expect from a good property management company.

      1. Effective Collection of Rent from Tenants

      If you own many rental units, you understand how cumbersome it can get when trying to collect rent from every tenant all by yourself. This is why you should use a reputable property management company. A good property manager will ensure that all your tenants pay their leases in full and at the right time.

      If you have limited time and you want to focus most of your efforts on growing your business, hiring a property manager who is fully committed to the day to day running of your property will be a great investment.

      2. Regular Property Maintenance

      Dealing with frequent calls from tenants is probably the biggest reason why landlords enlist the help of a management company. Sometimes the tenant’s needs are not very big but the timing and the urgency are. You may receive a call in the middle of the night from a distressed tenant who has misplaced their keys and can’t get in.

      Failure to address these issues can result in serious problems with your tenants in the future. Having a good property manager who responds urgently to all property issues will not only ease your burden but also ensure that all your rental properties are optimized.

      A good property manager will also inspect the property regularly and make sure that all routine maintenance such as lawn care, plumbing issues, drywall patching, pressure washing, and all other services that tenants may need are handled at the right time.

      3. Sourcing of Tenants

      It is one thing to get tenants for your rental property, it’s another thing to get the right tenants. A good property management company will ensure that proper screening of prospective tenants is done so that you don’t end up with tenants who are bankrupt or have fully maxed their credit cards and will have problems paying rent every month.

      A good property manager will also take time to call previous landlords and also look into the tenant’s criminal history. The last thing you need is a tenant who puts you or the entire neighborhood at risk.

      4. Bookkeeping

      Bookkeeping is a vital part of property management. Proper bookkeeping ensures that taxes are kept at a minimum, and the cash keeps flowing. A good property manager will ensure that your books are kept properly but if they don’t offer bookkeeping services, they can advise you on where you can outsource a good bookkeeper who will add value to your business.

      5. Effective Handling of Defaulters

      Sometimes tenants get caught up in serious issues such as breaching of leases while others could be involved in criminal issues. While some issues can be sorted directly with the renter’s other issues require lawyers and even going to court. A good property management company can handle these problems for you and save you the time and agony of dealing with such stressful situations.

      Ready to make a Move?

      Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.