Do you own income property, or are you looking to invest in one? Managing an income property can be financially rewarding, but it can also be very time consuming. Hiring a property manager enables you to easily delegate the many tasks of property management. There are many day to day duties and responsibilities of managing income property; here are the many benefits that come with hiring a professional property management company:
Collecting and depositing monthly rent payments: Property management companies have efficient processes to effectively collect rent payments on time. This is extremely important for any property owner, as it allows the building to cash flow properly. In the unfortunate event that a tenant is late on a rent payment the property management company will have the skills necessary to remedy the situation in a professional and legal manner.
Entering and paying incoming bills: Insurance, lawn care, phones, elevator maintenance— These are some of the many bills that an income property will incur. A property management company will efficiently and effectively insure these bills are paid on time.
Creating annual operating budgets: Budgets are created by a property manager. They typically include any expected expenses for the year. These may include: snow removal, janitorial, and internet services, property taxes, insurance and many more. These budgets are also a guide in determining CAM rates for commercial properties with NNN leases.
Financial record keeping: Property management companies will keep a detailed record of the properties financial information. Quick Books is a quick and easy tool that many property managers use. This system can generate simple up-to-date financial reports which are easy for any landlord to access/view.
Managing vendor relationships: Property management companies have a network of vendors that would be difficult to have as a landlord. These networks allow the properties to get the best price for quality work, and aid in reducing the properties operating expenses.
Ensuring that you’re in compliance property laws: There are many local, state and federal laws and regulations when renting and maintaining income properties. Property management companies help avoid lawsuits by staying compliant with these laws and regulations.
Maintaining tenant relationships: In addition to rent collection, property management companies will maintain a positive and professional relationship with the tenants. Property managers will resolve day-to-day and emergency maintenance issues, routinely inspect spaces, and manage any conflict resolution situations that may arise.
Provide on-call property maintenance/personnel: Imagine it is Wednesday night at 11:00pm, and your phone rings. It is your fire protection company calling because the alarms are going off at your building. When you hire a property management company these types of issues no longer need to be your issue at odd hours of the day!
Maintaining the overall appearance of the property: Think about your home— weeds seem to grow faster than you can pick them, and if you have children the toys end up on the floor faster than you can put them away, right?!?! Worrying about the appearance of your income property can easily be resolved when hiring a property management company.
Maximizing the profitability of your time and money: The typical property management company charges a percentage of your property’s monthly income. For commercial building this rate is usually 4-5% of gross rents. Managing an income property is a full time job. By hiring skilled professionals to manage your property, it not only is the most cost efficient, but also the most time efficient. It will give you more time to further your investment portfolio, career or any other pass time you may enjoy!!!
If you think hiring a property management company may be for you Arrow Companies can help! Property management is one of our core services. We will insure your property is managed to the highest standards. Our extensive portfolio and many years of property management experience enable us to gauge commercial trends and successfully promote and manage various properties. Our professional property management team is extremely organized and detail-oriented, constantly seeking new solutions and learning new technologies to enhance every service we offer. We will work closely with banks and third parties to carry out property management services. We also offer an outstanding team with the resources to fill vacant spaces and keep every tenant happy. Contact us today to take advantage of our property management services!