Probably Your Best Business Asset
If you’re a small to medium-sized rental property or real estate investment firm, you might believe that asset values are simply a byproduct of good asset selection, smart financing, and maximum rent yields alone.
Yet with the growing amenities and services property owners are delivering with upscale properties today, the success mix is much different. It’s property management companies that are able to manage the complexity and increase the value and yields of your property assets and keep you in the black.
Property managers help you protect the value of your investment, grow rent yields, and give you the confidence to make wise decisions
Adding Value is Harder to Do Now
If you’ve got limited time, don’t like managing, live a distance from your properties, have lots of properties, and don’t want all the tasks involved with being an employer, then outsourcing to a good property management company is a wise choice.
“From common area amenities to individual unit maintenance needs, a quality property manager will keep a community in prime condition, maximizing its value…This, in turn, will bring higher rent potential for increased profit during ownership and a larger return once the investor is ready to sell.” — Debbie D. Willis of Phoenix-based P.B. Bell in a post in GlobeSt.
Services, Amenities, and Expectations
Okay, so maybe it isn’t so new to many, that property managers optimize property performance (see KPIs), keep tenants loyal, and create sustained rental income. What many don’t realize is the property rental industry is changing. In the pursuit of high yields and competitive properties, it’s getting more technical and complex, and still serving a variety of real human tenants. And then there’s the amenities.
From smart locks, to simplified accounting, to in-depth owner reports, and maximum operational efficiency, property managers help you grow your asset value during a flat property appreciation period and flattening rents.
It could be the easy money is gone, and the last source of good profit is via property managers. In fact, property management companies are likely the only route you have to capitalize on the lucrative multifamily market. When you grow your portfolio, the challenges multiply. That’s why a lot of landlords look to professional property managers to help them today.
A Potent Value Proposition
As we mentioned in previous posts, property management companies excel at assessing how to manage a property, finding the best trained and quality staff, and they can attract and screen the best quality tenants.
The 22 benefits listed below reveals a potent value proposition for landlords and investors. As a result we’re seeing a boom in property management firms and supporting technology called Proptech. They’re delivering much needed services.
The value of property management companies is vastly underrated, as is the role of Proptech, such as property management software in operational efficiency. Making it all go smoothly is what makes it even possible. Tackling more properties without an intelligent blueprint could be disastrous financially. The PM’s advice could be very helpful.
Upscale Properties is Where the Market is Now
As Debbie D. Willis of Phoenix-based P.B. Bell, an award winning full service property management firm says, it’s the burgeoning luxury property sector where there are more services, amenities, higher expectations and performance demands — and higher ROI.
Upscale residents expect the very best in property management services. And growing millennial renters with fast rising wages too, are demanding in terms of Proptech, do-it-yourself, smart apartments, and smartphone friendly renter tools. What renters want today goes beyond property management apps though, to key lifestyle amenities.
22 Reasons Why Property Management Companies Help
The value PM Companies offer is an impressive and convincing selection:
1. keep everything under control, producing ROI sustainably
2. take the load and stress off of you and return your free time
3. maximizing rent yields via tenant management and analytics
4. attracting better tenants and managing onboarding well
5. mitigating the loss of long vacancies
6. having a better idea of what tenants want
7. writing and handling leases correctly
8. meeting regulator guidelines, laws and compliance
9. knowledge of local tenant/landlord laws
10. managing property budgets and business records responsibly
11. managing accounting and tax reduction well
12. managing the complexity of advanced services and amenities
13. keeping building operations running smooth
14. responsive service to tenants
15. professional communication among all relevant parties
16. better building and apartment maintenance/repair protects expensive assets
17. keeping property accident free and looking excellent
18. efficient collection of rent
19. evicting non-paying and bad tenants
20. managing in-house or contracted service contractors well
21. maximizing revenue and minimizing costs
22. help advising on your future property investment from their point of view
If you’re a landlord or property investor growing your portfolio fast, the services of good local property management companies can cut a lot of the worry and risk. Sure there’s a cost, yet with your property management software reporting tools, you can weigh the cost vs profit benefits yourself.
Good software can keep you and your property management company on the ball and aware of oncoming threats and issues. It can improve your tenant relations and keep your ship on course.
Just the fact you have trained professionals to make your business work is probably enough. They might be worth their weight in gold so to speak. All you have to do is find the best property management company in your region and negotiate something that works for both of you.
When you’re both happy, the value of your property assets are protected and optimized. Good luck with your search for a great property management company!
See also: 2018 2019 Rental Housing Market | Phoenix AZ Housing Market | Las Vegas Housing Market | Los Angeles Housing Market | California Housing Market | Toronto Housing Market | Toronto Condo Prices | Australia Housing Market | UK Rental Market | San Jose Housing Market | San Francisco Housing Market | San Francisco Rental Market | Florida Housing Market | Apartments for Rent | Property Manager Training | Cloud Property Management Software | ManageCasa Rental Property Software