What is property management?
Property management is the management of real estate through a third party. The property management team ensures that cash flow producing real estate property operates properly and addresses any issues that may arise. Property management teams can either be put together in-house or outsourced.
What are the responsibilities of the property management team?
The property management team is responsible for ensuring rent is collected, repairs and maintenance are addressed, evicting non-paying tenants, occupying the property, collecting data, putting together a rent roll, and any property related tasks delegated by the property owner.
What are the benefits of a property management team?
A property management team allows you to invest in real estate out-of-state and scale your real estate business. Many investors limit themselves to only investing in local properties, but a property management team allows investors to expand their business. Inexperienced investors who feel they don’t have the time to manage real estate investment properties can lean on property managers to manage their portfolio.
How do property managers get paid?
Property managers charge a percentage of the monthly rent collected or a fixed fee.
What are the negatives of a property management team?
Some properties may never need the assistance of a property manager, therefore, it’s important for an investor to figure out which properties truly need a property manager as this can save the investor an unnecessary fee.
Reasons to hire a property manager
- Scale business
- Too many units acquired to self-manage
- Lack of experience
- Acquiring properties out-of-state