Imagine you have what it takes to become the perfect small-scale real estate investor. You own three apartments in a single condo development and you live in one of them. By a happy coincidence, you’re an electrician, or a carpenter, or better yet, a licensed real estate broker. Hence, you can rent two of your properties and earn some easy money. However, there are always more to a job than it seems on the surface, even in this best-case scenario. It’s doubly true that there’s more to the job if you have more than these and live far away from your investment, in which case getting a property management service will make perfect sense.
And we list six reasons why you should.
1. They Know the Law
As a landlord, you cannot just list a set a demands to your would-be tenants and expect them to abide by them. The real estate sector, especially the rental sector, is governed by a specific set of laws. This ensures that the interest of both tenants and landlords are protected.
The Rent Control Act of 2009, for example, states that the rent for any residential unit in Metro Manila and other highly urbanized cities should not by more than 7 percent annually as long as the unit is occupied by the same lessee. And who better understands these than an expert property manager.
2. They Source and Shortlist Tenants for You
Then there’s sourcing a tenant, which is a job in itself. Think posting an ad in a real estate website, wording the ad just right to entice would-be renters, shortlisting candidates, and doing the necessary background check, all for finding the right one. In most cases a property manager has enough experience, connections, and understanding of the local tenant pool to help you find the right tenant – one who will live up to the commitment set out in the lease.
3. They Help You Draw out Legal Contracts
Although there are standard lease contracts available online, you’ll be well advised to have a property-management expert help you draw one. Every tenant is different, and each will probably request additional clauses to be included. This may present potential complication as you don’t have an idea of what falls within your responsibilities as a landlord and your tenant’s rights. A seasoned property manager is more likely to have an attorney at hand already familiar with the standard lease and who can double check that it provides adequate protection for you and your investment.
4. They Oversee Tenant Changeovers
If you offer your property for short-term leases (usually a couple of months of shorter), then the more a property-management expert would be of great use to you. Property management entails scheduling bookings, signing contracts, meeting and greeting renters upon their arrival, providing them with a key and instructions, collecting payment, and then at the end of the lease returning to the property to collect the key and any outstanding money due and inspecting the property for damages. If you have a full-time job or run another business, then it’s more likely you don’t have time for all of these.
5. They Make Sure Your Property Is Maintained
You don’t just expect your property to be cash-churning machine without much effort, do you? In between leases, short- and long-term, you need to schedule cleaning and maintenance to fix anything that either was broken or damaged by the last tenant or is just starting to show signs of wear and tear. What if the next tenant is due to arrive the next day and the cleaning service can’t make it until after two days? You definitely need backup for all the necessary services, and seasoned property managers will most likely have them.
6. They Bridge Relationship between You and Your Tenants
Houses present more challenges than what are readily apparent. Faucets leak, toilets back up (eek!), and the neighbor’s cat may sneak inside and leave a little surprise on the living room floor—tenants will expect you to come and deal with all these immediately if not sooner.
No matter how much time and effort you put into selecting the right tenant, there will always be a few who will complain about anything, so you have to have the patience to deal will all these. This is perhaps the most important and useful skill a good property manager possesses.
You may be prepared to deal with the legal obligations, collect rents, and hire cleaners, but how much would you pay not to receive a phone call in the middle of the night from a tenant who needs to complain that the mattress is lumpy?
A property manager who can deal with all of these and manage to smile while doing his or her job is worth every peso you, as a landlord, will spend.
