Optivo ProAssist

Imagine this…you have just purchased several new properties to add to your investment portfolio but realize you now face a new challenge. Now that you have multiple properties, how are you going to manage all of them? The time has come to consider hiring a property management company. But what is a property management company and what do they really do?

What is Property Management?

Property management is the daily oversight of residential, commercial, or industrial real estate by a third-party contractor. Property managers make investing in real estate a much easier process, while sustaining its profitability. Managing everything from administrative work regarding rental applications to hiring and managing maintenance workers on rental properties, property management companies provide a plethora of helpful services to property owners far and wide.

What We Do

Let’s be honest for a moment, managing the day-to-day operations of a property and its tenants is a massive undertaking. Now add the day-to-day operations of more than one property and you have found yourself trying to be in two places at once. It’s just not possible. Optivo Group was created for this exact purpose; to alleviate the stress of managing all the properties alone. Some of our services include:

• Screening potential tenants
• Drafting, signing, and renewing leases on behalf of property owners
• Collecting rent
• Maintaining properties including landscaping and snow removal
• Coordinating necessary repairs
• Setting up appointments for property maintenance
• Understanding state and national landlord-tenant laws and regulations
• Marketing properties to fill vacancies faster

A property management company’s sole purpose is to maximize the property’s potential. There are many reasons to hire a property management company. As discussed previously, perhaps you have multiple rental properties and lack the time and/or expertise to maintain them and deal with individual tenants. Whether the owner lives out of state, or the landlord simply wants to entrust a professional to manage the rental properties, property management companies can help maximize the investment. Having an on-site manager is advantageous if the property owner lives out of state, but furthermore can be valuable for tenant relations. Developing trust and respect with your tenants increases rapport and encourages them to renew their leases.

Five Benefits of Having A Property Management Company

The single biggest advantage investors have by working with property management companies is, you guessed it, time. By procuring the services of a great property management company, investors won’t be forced to handle the property themselves; they’ll be free to take on other obligations. The added time will help most investors find and acquire more rental properties to add to their portfolio. For others, not having to manage a property rids their lives of unnecessary pressure and worry. However, there are so many other benefits to hiring a property management company, but for now let’s focus on these five:

1. Diminish Liability: As a first time or inexperienced rental property investor, one of the greatest risks is liability. An underrated perk of having a property management company is they act as a buffer between the tenants and the owners. It’s too easy for an unscrupulous tenant to make false claims about negligent maintenance, rent collection tactics, and illegal eviction practices.

2. Quality Tenants: Managing properties and people is what property management companies are good at, it’s how they make a living. Therefore, they have come to know what qualities to look for in a good tenant. The better the tenant, the better the experience for investors and owners all around.

3. Shorter Vacancies: Not only will a property management company aggressively market to fill vacancies, but it will also do this with a sense of urgency and efficiency. Property management companies are better at filling vacancies than traditional landlords because they have the time and resources to do so which drastically shortens the length of time between vacancies. Meanwhile, landlords can increase profits throughout the year by making sure each unit is occupied continuously.

4. Lower Maintenance Costs: Typically, property management companies have spent years building a good relationship with contractors and vendors to secure the best rates available. Having a property management company that partners with reputable vendors is invaluable.

5. Better Reviews: Tenants tend to favor working with property managers, as the process is almost always smoother. Thus, the experience is naturally better than dealing directly with landlords. Subsequently, renters are more likely to leave a good review when they vacate the premises. Those same reviews will serve to drive more traffic to the unit when the time comes to find another tenant. Good reviews go a long way in today’s world and any seasoned renter has had their fair share of bad property managers.

Is A Property Manager Worth It?

The short answer here is yes. The long answer is something everyone needs to analyze for themselves. Managing multiple properties at once can be costly and more importantly takes a ton of time. If the cost of a property manager is less than the opportunity cost of managing properties yourself, it’s definitely a good investment. Being an investment property owner means that you must keep up with property maintenance, retain an understanding of the rules and laws encompassing property ownership, and keep your tenants happy all at the same time. These are not easy tasks! Property management companies focus exclusively on these responsibilities and they’re experts at what they do. Hiring a property management company can not only give you time back in your day, but it will give you peace of mind knowing that you have a professional team working on all the aspects that make being a landlord or property owner complex. When you compile all the benefits that property management companies offer, you will often find that they are well worth the management fee, particularly if you are trying to grow your rental portfolio. Afterall, you are an investor, right? Connect with us now to fulfill all your property management needs!