In order to gain real value from your real estate investment, it is necessary to employ a real estate manager. But with so many property managers to choose from and considering the fairly low monthly rates they come with, it is easy to simply go for the first property manager you find.
When you are looking for an expert to manage your real estate property, your focus should not be on the lowest priced one but the one who provides services that are above and beyond what’s expected of them.
The most important thing to keep in mind is that you are not simply hiring a property manager, but also someone with whom you can establish a relationship. This relationship should be based on trust, open communication and the best advice to help grow your real estate value. When you take such things into consideration, you can see why the usual property manager just won’t do.
To help you make the right hire, here are some of the services a good property manager provides.
1. Basic property services
A good property manager has the duty of handling basic responsibilities. There are three main responsibilities; tenants, rent and property maintenance.
Tenants – If a property, residential or commercial, is unoccupied the manager has a duty to find tenants, screening them and then handle the lease agreement. For existing tenants, the manager handles any evictions, complaints and move-outs.
Rent – In relation to rent, the property manager sets the rent amount depending on the state of the market, collects rent and periodically reviews it and adjusts it if necessary.
Repair and maintenance – This includes preventive maintenance to prevent deterioration of the property and repairs when damage has occurred.
While the above services are extremely crucial, there are other additional ones that a property manager must be able to provide. They include:
2. Understanding and application of legislation
There are many laws that govern various aspects of real estate including landlord-tenant relationship, expansion of property, repairs and maintenance. It is important for a property manager to have a thorough understanding of these laws to ensure full compliance. This ensures that the property owner does not get into any legal troubles.
3. Understanding and application of real estate market economics
The real estate market keeps on changing. As property values change, the property manager has to keep up and act accordingly. For example, the rent is dependent on the current nature of the market within an area. If property prices go up for any reason, the property manager has to review and adjust the rent.
4. Act as a financial advisor to the property owner
With a good understanding of the market, the property manager can advise the owner on various matters such as what upgrades to make to improve value of the property, monthly and yearly maintenance budgets and projected future costs and investments.
5. Reporting to the property owner
Finally, the property manager has a responsibility to keep the property owner informed by submitting monthly reports regarding the property. The reports submitted are usually of two types; a financial one depicting monthly expenses and revenue (this should also include a budget for the coming month) and a physical one for any physical changes such as repairs that have been carried out within the property.
6. Assisting with using Property Management Software.
Property owners can also use Property Management software such as PropertyMe to assist with managing their profile of real estate properties making the process simple and easy.