We currently live in a time where convenience has become the driving factor in people’s decisions. People prefer shopping online instead of in-store, phones come equipped with facial recognition, and driving services like Uber and Lyft have taken over the transportation industry. Though automation is a current trend, there are still tasks that automation and technology can’t fully replace. Multifamily property owners should avoid self-managing their assets because owners are less likely to collect additional income. Hiring a third-party property manager not only saves you money, but it can put more cash in your pocket and increase the value of your property.
Here are four ways a property manager can positively impact your bottom line:
1. Match the Market
Understanding rental prices in the current market are one of the most important roles of a property manager. Using the most accurate data available, a property manager can:
- Analyze and evaluate your property in comparison to the area and your competition
- Check to see what incentives and promotions your competitors are offering residents
- Find new, previously overlooked avenues for reaching your target rental market
- Strategically increase rents
2. Implement Preventative Maintenance and Repairs
According to the Census Bureau, a quarter of rental property owners spend over 20 percent of their rental income towards maintenance alone. Property managers can save you an immense amount of money by implementing a preventative maintenance plan. An effective preventative maintenance plan has proven to avoid system failure, downtime, and extend the life of mission-critical, high-cost equipment and systems. Property managers understand that a preventative maintenance plan prolongs the life of equipment and reduces overall maintenance costs.
A property manager can:
- Make sure you have people who truly understand the way your property works
- Plan and schedule regular inspections and cleanings
- Maintain good relationships with vendors who repair systems beyond your team’s skillset
- Keep an inventory of all equipment and detailed records of work performed
- Stay on top of systematic and future repairs
3. Minimize Resident Turnover and Vacancy
Finding stable residents is extremely time-consuming. Resident turnovers can quickly eat into your profits due to the costs of completing repairs, painting, and cleaning. Property managers work hard to find good residents and hold onto them. Reliable residents pay their rent on time, take care of their unit, renew their lease, and thus, enhance the stability of your property. Difficult residents can cost you time and money from evictions, legal trouble, and/or damage to the property. Fewer turnovers equal fewer expenses and fewer headaches.
A valuable property manager will implement a resident retention plan by:
- Keeping all advertising and property listings up-to-date. Keeping unavailable properties posted can cause a decrease in resident applications
- Carefully screen residents and evaluate them based on their rental history and reasons for seeking a new apartment
- Build a relationship with current residents
- Be proactive in handling any resident complaints and follow up with the resident after the issue is resolved
4. Add Profitable Amenities
Using insights from resident surveys and market studies, a property manager will suggest supplementary upgrades or additions you can make to the property. These strategic improvements can attract more residents and create additional streams of revenue and most importantly, put more money in your pocket.
Profitable amenities include: on-site laundry, residential storage, extra parking, pet services, fitness center, cleaning services, package delivery lockers, and car charging stations.
By avoiding one difficult eviction process or one less vacancy, you can make up the cost of investing in a property manager. With the right professional on your side, you will have the freedom to focus on building your portfolio, taking that extra vacation, or focusing on your day job. A property management company will take care of your property so you don’t have to.
Taryn Spiller is with MPS Management. MPS Management is a leading property management company in the Los Angeles area. For more information, email [email protected] or visit their website at http://mps-management.com/.