Property management refers to a third party’s company that manages the daily oversight of residential or commercial properties. Typically, they work for the owners of investment properties and are responsible for the upkeep, security, ongoing maintenance, and property repairs.
A property management company may also be responsible for preserving the home value and helping the homeowner generate income by finding high-quality tenants.
What Do Property Managers Do?
Property managers provide numerous services, including: rent collection, sourcing tenants, property maintenance, and financial guidance.
RENT COLLECTION
Collecting rent is one of their most obvious duties, and it takes more work than most people realize. Property managers examine real estate market conditions to determine rent prices, allowing you to profit while tenants pay a competitive price. They can provide invaluable advice and help homeowners earn more from their investment.
Hiring a property manager also helps limit vacancies, which can be a major financial liability. They can outline rent contracts and agreements on your behalf, but your signature is still required.
Property managers also deal with defaulters, a job most homeowners are happy to turn over to someone else. In these cases, defaulters could endanger your SFR Investments or accumulate months of past due rent.
In short, property managers can save you time and stress in collecting rent, dealing with tenants, and protecting yourself from malicious renters.
SOURCING TENANTS
Property managers are responsible for showing units, marketing tenants, and screening prospective renters. They oversee move-in and move-out schedules.
Finding a high-quality tenant is not easy. A good property management company will have a rigorous screening process and should turn down a tenant that may cause issues. The property manager will use great marketing to bring in a large number of candidates, check their rental histories, run their credit scores and conduct interviews. Allowing a low-quality tenant to move into your investment property can be a very costly mistake.
PROPERTY MAINTENANCE
Tenants of a rental property expect property managers to deal with regular inspections and routine maintenance of your SFR investments, including but not limited to the following:
- Drywall Patching
- Appliance Repairs
- Pressure Washing
- Preventive Maintenance
- Plumbing Issues
In these cases, they act as the intermediary between the tenants and the contractors needed to address their concerns. This allows the tenant to receive immediate support without bothering the homeowner. It is faster, more objective and typically more cost effective.
FINANCIAL GUIDANCE
A strong property management company will have a good process for invoicing and bookkeeping. They will keep the rental money coming in each month, make payments to the homeowner, and provide detailed tracking.
Hiring a property management company is crucial for property owners who want to maximize their rental income while minimizing the stress and workload associated with managing their property.
A professional property management company can handle tasks such as tenant screening, rent collection, maintenance, and repairs and ensure that the property complies with local laws and regulations.
PEACE OF MIND
By delegating these responsibilities to an experienced team, property owners can enjoy a more passive income stream, reduce their legal liability, and ultimately increase the value of their property.
In short, a property management company can provide peace of mind and help property owners achieve their financial goals with less effort and hassle.
Smart Investors Use Property Management Companies
Meridian Pacific Properties provides investors with a turnkey real estate investing platform. In addition to building and selling top-quality investment properties, we also provide property management.
“Meridian Property Management is a company we formed in 2012 and it is completely devoted to the interests of Meridian Pacific Properties investors,” said Brian Conlon, Director of Business Development. “Our property management company minimizes vacancies, manages maintenance and provides exceptional communication to our investors.”
Meridian Pacific Properties has a sophisticated business model. “Our goal is to help our investors realize the highest returns for their investments, that’s why we include first-rate property management,” said Conlon. “Property management will make or break your return on investment.”
We build investment homes in the greater Memphis area. Currently we are selling new construction homes in Walls and Horn Lake, Mississippi. Our property management company is conveniently located and ready to serve our local tenants and investment property owners from coast-to-coast.
Become a Real Estate Investor
If you are interested in investing in SFR real estate, please reach out. We are a leader in build-to-rent investments and have a long history of helping investors build wealth through real estate.
Sources:
Investopedia. (2021, August 11). Property Management. https://www.investopedia.com/terms/p/property-management.asp
FortuneBuilders. (n.d.). What Does a Property Management Company Really Do? https://www.fortunebuilders.com/what-does-a-property-management-company-really-do/
Rocket Mortgage. (2021, June 7). What Does a Property Manager Do? https://www.rocketmortgage.com/learn/what-does-a-property-manager-do
Nolo. (n.d.). Should You Hire a Property Management Company? https://www.nolo.com/legal-encyclopedia/landlord-hire-property-management-company-29885.html
