Courtesy of: Fred Thompson, MPM® RMP® Director of Property Management
Many people think that professional property managers just collect rent, put tenants into a property, coordinate maintenance, and handle the move out when the time comes. That definition is far from the truth. A Professional Property Manager brings value and expertise well beyond their management fee. Anyone that owns investment property has or should have a circle of advisors to maximize the investment and your property manager is part of that group of trusted advisors. So, what should you expect?
- Just like your tax advisor who constantly stays on top of changes to advise you on your personal situation a property manager provides monthly and year-end statements along with a 1099 so that you can accurately report your income and expenses on your taxes.
- Just like your financial advisor who helps you keep your emotions in check with the ups and downs of the market a property manager is the gate keeper between you and the tenant. If the property was once grandma’s house or the home you raised your family in there will be strong emotions attached to the property and the property manager can provide sound counsel about how to handle tenant situations or questions.
- Just like your insurance agent, a professional property manager manages your risk. This includes ensuring that vendors used on the property have proper insurance, that Fair Housing laws are followed; that the property itself has the necessary insurance to protect the owner, and to screen and place qualified tenants to limit possible lawsuits. Behind the scenes, risk management includes keeping tenant and property information secure and for the legally required period. The property manager handles the return of security deposits and maintenance requests according to the law and works to ensure clean trust funds.
- Just like a bookkeeper tracks income and expenses a professional property manager provides internal bookkeeping services which are an integral part of property management. They take the burden off you by collecting rent and other tenant charges as well as pay bills associated with the property, which might include insurance, HOA fees, utility bills, and property taxes. They will issue 1099’s to vendors on your behalf.
- Just like having a human resource department that screens and hires employees, a professional property manager is astute at screening potential tenants. They are experts at what makes a great tenant. This alone is worth its weight in gold. Qualified tenants pay rent on time, report maintenance, and leave the property in excellent condition when the time comes to move. Property managers have seen fake tax returns, have spoken to fake landlords, and know the difference between a lab mix and a pit bull.
- Just like an attorney professional property manager’s stay on top of the ever-changing legal landscape of owning rental property. There are federal laws, state laws, and local ordinances. There are laws about how to post notices, how to increase rent, and what is a disability and the accommodations that are required. A professional property manager also knows when it is time to consult with an attorney.
- Just like a mediator, whose role is to find a win-win solution for everyone the professional property manager is a facilitator and advisor whose main objective is to provide solutions. The goal of professional property management is to allow the property owner to confidently step back from the day-to-day management of their investment.
Bottom line, property management is all about relationships. Solid relationships are built on trust, which is created over time by being transparent, honest, and professional. It is our mission to earn your trust daily. If you have questions about how we manage your investment, please reach out to us. We are in partnership with you.
More info: http://www.terraresidential.com/