If you invest in residential real estate on a very small scale, you may be trying to run your business on your own to avoid the expense of hiring any supportive services. Unfortunately, part-time investors often find that the work of caring for a few rental properties can make it difficult for them to handle other responsibilities, including their family and career. While it is important that casual investors remain watchful of their budgets and look for ways to make their rental properties as financially profitable as possible, hiring a residential property manager could offer benefits that should not be overlooked.
A residential property management professional understands current housing regulations
Failure to follow housing regulations can result in expensive fines and the potential for legal problems for landlords. By hiring a residential property management firm, small investors can be assured that their properties will continue to remain in compliance with local, state, and federal housing regulations.
A residential property management professional can conduct better tenant screenings
Screening tenants is critically necessary to ensure that those with a poor rental history are avoided, but most small investors may lack access to information commonly used to help with the tenant screening process. Residential property management firms, however, will typically maintain access to databases that help with the process of screening each prospective tenant to ensure that they have a history of making timely rental payments and taking care of their rented home. Property managers can also conduct background checks, including employment verification or making contact with a previous landlord to confirm the applicant's qualifications.
A residential property management professional can help insulate the owner
One of the most important functions that a residential property management professional can provide for small real estate investors is the ability to insulate them from much of the daily work of handling each property. Tenants will call the property manager to report problems or ask questions, instead of calling the owner. Many property managers also routinely handle basic scheduling of routine maintenance needs, such as scheduling lawn care and advertising for new tenants when a unit becomes vacant. This layer of insulation allows the investor to more easily focus on other parts of their life or search for new residential property to purchase.
In addition to the benefits listed above, casual investors who opt to hire a residential property manager can also enjoy benefits such as collecting rent payments, making bank deposits, and paying other service providers. To learn more, investors should take the time to meet with a residential property management firm in their area.