AboutTime Issue 33 | Page 6

PROPERTY MANAGEMENT Benefits of using a property management company By Turnie Morolong Owning investment property, especially if it is multiple properties with a wide geographic spread, can be very cumbersome. In such a situation, hiring a professional property manager to take care of the properties becomes the only logical thing to do. Whilst it is true that professional property management is another expense to your business, the advantages it offers can certainly outweigh the disadvantages. What are some of the important advantages of hiring a professional property manager to manage your investment properties? Ensuring rent is paid on time Since property managers deduct their fees from the monthly rent received, they are motivated to keep those payments flowing in. Timely rental collection is the only way for an investment property owner to generate reliable income. Consistent rent collection is key to receiving rent payments on time. A property manager will enforce the provisions of the lease if rentals are not received. If a tenant consistently fails to pay rent on time (or at all), the property manager will know the proper steps to take to deal with the situation, including if necessary issuing an eviction notice. Screening of tenants Property managers handle all the tenant screening activities with a view to getting tenants that pay on time and who are most likely to take better care of the property. Some investment property owners do not run credit and/or background checks on prospective tenants either because they do not have the time or do not know where to get reports. Renting to people without regard for their credit or background checks is one sure way to end up with problem tenants. Decreasing tenant turnover A good property manager knows how to keep tenants happy; he or she is responsive, available and takes care of the problems as they arise. Happy tenants are less likely to look for another place to live. Vacancies cost the landlord money. Shortening of vacancy cycles Vacancies cost money. Without a property manager, it may take a landlord several months to prepare a property for rent, determine how much rent to charge and market the property to potential tenants. Property managers can reduce the amount of time it takes to perform these tasks. 6 Acting as the point of contact for tenant concerns If something breaks in a property, it is not always convenient or possible for an investment property owner to drive over to the property to inspect it himself, especially if it is in another town. A property manager can address problems at all hours of the day and arrange for a service provider to repair or replace the item. Handling of legal aspects of leasing A property manager handles all legal aspects of dealing with tenants and maintaining the property. A property manager handles evictions, property inspections, lease negotiations and terminations. A property manager ensures that each property is in compliance with all property bye-laws, which may vary by municipality. These services can help an investment property owner avoid costly lawsuits and legal problems. Investing in property can build long-term wealth. But the day to day management isn’t for everyone. If someone else is handling the day to day management of your investment property, you will have fewer complications and commitments to worry about. If more time and less stress are key to your quality of life, a property manager can be a great asset. Many of the benefits of using the services of a property manager are related directly to saving money. However, there are several personal benefits, the most important being that it allows investment property owners greater freedom. Instead of being attached to one property, an investment property owner can buy multiple properties in different locations and let a property manager take care of each one. Owning an investment property can be a rewarding experience as it often generates a steady income. However, an investment property only generates income if it is managed well.