Buying a rental house can be a good way of generating extra income and long-term wealth. The reality, though, is that landlording is neither a walk in the park nor a bed of roses.
From dealing with tenants who nitpick about everything to juggling the need for maintenance and repairs, landlord duties never end.
That’s where a local property manager comes in handy. Instead of juggling all of the landlord responsibilities independently, you can hire a professional to assist.
Whether you have one rental property or a portfolio of them, here are five ways a local property manager can help in a way that an out-of-town service provider can’t.
- They Know the Local Market
Real estate is by nature local, and there are going to be idiosyncrasies in every market. Rental demand levels, pricing, tenant preferences, and even desired amenities can vary widely from city—or in some cases, even neighborhood—to city.
So, if you own an apartment building in, say, Houston, Texas, you’ll do yourself a big favor by hiring a property manager serving Houston apartment owners. It will understand how much similar properties are renting for, how to price it properly, and how to acquire good quality tenants. That skill will save your bacon since you’ll enjoy the uninterrupted flow of rental income.
- Professional Tenant Screening
Possibly the greatest danger of owning a rental property is dealing with bad tenants. Overdue payments, property damage, or constant complaining will drain your profits and boost your stress. Such problems might prompt you to second-guess your property ownership decision.
Local property managers, however, have systems in place to screen tenants. Since they know the local demographic, they’ll better know what to look for than out-of-town property managers.
- Good Rent Collection and Compliance
Suing for unpaid rent or getting yourself entangled in landlord-tenant issues can be infuriating if you don’t know the laws of your area. Rental laws vary from state to state, and all it’ll take is a single mistake to land you in legal hot water.
Local property managers understand such laws well. You don’t want to rely on a property manager based elsewhere since they won’t have the same level of local knowledge as a local service provider.
- Maintenance and Vendor Relations
Maintenance is vital for all rental properties, whether for preventative care or unexpected emergency repairs.
Local property managers have relationships with reputable good vendors and contractors within the community. They can have boots on the ground faster than out-of-town property managers, which means maintenance and repairs will get done faster.
This not only saves your time but also makes your tenants more content—a key factor in their decision on whether to renew leases. Regular, timely maintenance will keep your property in great shape and reduce the risk of small issues becoming major problems.
- Lower Vacancy Rates
An empty property is one of the fastest ways to lose money as a landlord. Each month your rental sits vacant, you’re responsible for the mortgage, taxes, and utilities without any income to offset the costs.
Local property managers know how to market rentals. They know the most effective marketing vehicles in your local marketplace, what to highlight when marketing to get local tenants, and how best to get a unit ready so it will display optimally when shown. Their goal is to minimize downtime between tenants and have your property leased with quality tenants.
Hiring a local property manager is about protecting your investment, maximizing your return, and keeping your rental business operating like a well-oiled machine. You don’t want to deal with a service provider that is so far away that response times are delayed. Staying local will give you peace of mind since the service provider will be nearby.