Property manager can lessen stress for landlords
Another contributing factor has been the hearty appetites of investors to add to their residential real estate portfolios. Over the last couple of years, institutional and private investors alike have poured millions into the local market and added thousands of units to the rental pool.
In addition to the typical investor, a niche of landlords evolved during the last recession. Often referred to as “reluctant landlords,” this group consists of owners who were unable to sell their home due to a loss of equity or some other circumstance. Many in the latter group will sell their home as market values rise, while others have learned from the situation and will likely continue as long-term investors.
All rental properties share one thing in common — someone must manage the workload and relationship between the investor/owner and tenant. Some investors choose to take on that task themselves, while others engage the services of a professional property manager.
What does a property manager do? In short, he or she oversees the day-to-day activities associated with owning and maintaining rental property. Property managers or firms work with the owner to provide a variety of outsourced services on a fee basis.
Securing a qualified tenant to rent the property is always a top priority. The manager is required to market the property (online, signs, etc.), make it available for viewing by prospective tenants, and conduct background screens and checks. He or she must also comply with fair housing laws, local regulations and ethical standards.
After a prospective tenant has been approved, the property manager oversees the lease negotiations, property inspections and other tasks as requested by the owner. After move-in, the management company usually coordinates maintenance requests and handles the day-to-day care of the property.
Maybe the most important function is to collect payments from the tenant and properly record and disperse funds. This includes pursuing late payments and executing eviction orders when that becomes the only remedy with a delinquent payer.
Why should a homeowner or investor hire a property management company to handle the day-to-day activities? Because the best are trained to manage difficult and frustrating situations, lessening the stress and hassles of real estate investment.
Ann Hoke leads the award-winning residential real estate team at Ann Hoke & Associates Keller Williams. For more information or comments, contact her at (615) 397-4024 or [email protected].
Source: Tennessean.com
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