Paying a property manager to take a slice of your pie might seem excessive.  After all, a property manager just finds renters and collects rents right?  Wrong.  If you’ve owned a rental property for quite some time, you’ll know that a property managers fee is a small bit of insurance when the going gets rough…and it will get rough. Not to mention, property managers are skilled at saving you money and time. Usually in the time it takes you to get your own home rented, a skilled property manager could have saved you a mortgage payment!

A successful rental is only as good as your tenants.  The key is to get the largest stack of applications to choose from, not just one or two.  Getting all those applications is what property managers do best…if you let them.

What does a property manager do?

A [good] property manager does more than just collect the monthly rent.  They provide a full list of  services that you aren’t likely to do on your own.

Experience is everything.   Renting out your home is best left to the people who know and understand landlord/tenant law, especially if things deteriorate.  A good property manager has the experience in not only identifying great tenants through screening processes, but can also employ conflict resolution if needed.   You might get lucky on your own, but a property manager has the experience and skills to avoid pitfalls and common mistakes by do-it-yourselfers.

Here is a quick list of things that good property managers do daily:

• Competitively price rental rates with the market.
• Advertise and promote your property effectively.  Anyone can buy a $12 “For Rent” sign and put up an ad on Craigs List, but can you access a database of real estate industry relationships and share your vacant rentals with other industry professionals?
• Show your property at the drop of a hat.  While you’re working people want to see your home.  If you’re not available, the other rental is and that’s where tenants go.
• Interview prospects.  You might be a nice guy, but can you identify a snake in the grass?  In my 5 years of management, there are at least 3 things every bad prospect will say and when they do, they’re off the list.
• Screen Applications.  Easy enough right!  You bet, collecting the appropriate documentation to prove income, employment and good rental history is just the beginning.  How about prior eviction filings or even criminal history?
• Run a Credit Check.
• Execute a strong lease.  Do yourself a favor, don’t get a fill-in-blank lease from Office Depot or Staples.  Instead, have a lawyer draft you one that will work with Idaho Code.
• Perform inspections.  Keeping on top of the issues before they happen is key.  Thousands of dollars of damages can happen in one day.  If you don’t check up on your property how will you know what’s really going on inside?
• Enforce a lease.  Knowing how and when to evict might come up.  In fact, it’s not a matter of if, it’s a matter of when.  To do it right takes a firm understanding of Idaho tenant/landlord law.
• Repair work.  When a pipe breaks, you need immediate action.  With preferred relationships, property managers will get service before you do every time.
• Reduce loss.  Knowing how to reduce the turnover rate in a rental is important when considering the validity of your investment.  What can you do to keep tenants in your house?

Before you attempt to manage your own rental:

Ask yourself the following questions

• Do you have experience managing rental property yourself?
• Are you familiar with fair housing and landlord/tenant laws in the jurisdiction(s) where your property is located?
• Do you have relationships with contractors that ensure you can get 24 hour service at reasonable prices?
• Do you have a reliable means to determine fair market rent and returns on your investment property?
• Do you know and have the proper notices and legal process to deal with non-paying tenants?
• Do you have a current, professionally crafted lease and related agreements/forms to minimize your exposure to liability should a tenant sue?
• Do you have relationships within the real estate and rental community to get leads and referrals for outstanding tenants?
• Do you have 24/7 availability to manage the property.
• Can you show the property daily?

If you answered ‘NO’ to any of those questions, then you should likely hire a property manager to avoid wasted time and excessive loss.

If you’d like a free consultation about the services that my property management services, just give me shout: 208-724-7602!

Related posts:

1. What is Property Management?
2. 12 Things That You’re Not Doing For Your Rental But Should Be
3. New Rentals Page

Tagged as: eviction, investment properties, landlord, lease, property manager, real estate, real property law, rent, rental properties, renting, tenant, tenant laws