If you’re a real estate investor, one of the most critical decisions you need to make in commercial real estate is whether you should hire a property manager to take care of your rental properties or not. While certain landlords are able to manage their properties effectively, most property owners are better off with a high-grade property manager.
If you’re new to world of real estate, it’s important to know that property management is a demanding job. From marketing the property to screening tenants and addressing service requests, each step has its own set of challenges. Therefore, we recommend hiring a high-grade property manager, which should provide you with the following benefits:
1. Investing in Distant Properties
Managing your own properties means your investment opportunities are limited to a specific radius of your location. An experienced property manager, on the other hand, helps you go beyond that range and benefit from investment deals in distant locations of your choice.
2. Finding the Best Tenants
Finding decent tenants who won’t be a nuisance to collect rent or create other challenges is among the most significant goals for real estate investors. Property managers who’ve been in the business for years will run security and criminal background checks, pull credit reports, collect references from previous landlords, and verify employment of tenancy applicants instead of just acquiring them haphazardly.
3. Timely Collecting Rent
Collecting rent on time is extremely important to ensure a smooth cash flow, but at the same time, securing rent payments from tenants can be quite hectic. Thankfully, top property managers rely on tried-and-true, efficient systems to collect rent and ensure on-time payments. This proves valuable when you have multiple rental properties to manage.
4. Boosting Profitability
You’ll typically be paying a proportion of your monthly rental income to the property manager for their services. The percentage is around 6% to 10% of the rental rate. This is significantly less than the amount you save by hiring a property management company. In the end, your net profit increases.
5. Addressing Maintenance Requests
Finding the right tenants is not enough. To ensure they stay in your property for a long period of time, you need to be responsive to their service requests. Your property manager will effectively manage all aspects of the tenant-landlord relationship, handling routine inspections, completing repairs, and resolving conflicts.
6. More time for Identifying New Investment Opportunities
Hiring a property management company also means you’ll be free from the day-to-day maintenance obligations. This time is made more productive as you can engage in exploring new investment opportunities.
Property Management Company In New Jersey and New York
To sum it up, whether you own commercial real estate or multi-family residential properties, services of a property manager should be highly valuable. With Milbrook Properties Ltd., you reap the property management benefits discussed above and more. Contact us today to utilize our services.