Managing rental properties can be a complex and challenging task, especially for landlords who own multiple properties. The key to successful property management is building a team of professionals who can help with various aspects of the business. In this article, we will discuss the people that landlords need to be part of their property management team to ensure success in the rental industry.
Finding the Right People
Building the right property management team is essential for landlords who want to run their businesses efficiently and effectively. Here are the individuals that landlords should consider:
Accountant
A solid accounting system is a must for every real estate investor like a landlord with multiple properties. An accountant is a crucial member of the property management team as they can help with financial management, budgeting, and tax planning. They can also assist with the preparation of financial statements and provide advice on how to improve cash flow.
Many investors avoid using third-party accounting services because of the expense. However, hiring an accountant can end up saving you more money in the long run. Without adequate bookkeeping, you won’t be able to see your finances clearly. This will make it difficult for you to stay on track with your objectives.
Appraiser
Whether investing in a modest, one-story house or a multi-million dollar mansion, due diligence is necessary. An appraiser can provide an accurate valuation of the property, which is essential when determining rental rates and when buying or selling properties. They can also advise on any necessary repairs or upgrades to the property to increase its value.
With a proper appraisal, you will gain certainty that you’re buying a property at a fair price and that your investment will be lucrative. Without it, you risk spending more than the property is actually worth and receiving a poor return on investment.
Contractor
A contractor is needed for repairs, maintenance, and renovations of rental properties. They can also assist with emergencies such as burst pipes or electrical issues. It is important to find a reliable contractor who can provide quality work at a fair price.
There may be tasks you can complete on your own, but only a contractor should handle serious repairs. Therefore, you must hire a contractor you can rely on to complete your projects accurately and on schedule. Be meticulous when choosing a contractor. Many contractors would work with you in exchange for a quick payday but would fail to provide high-quality work.
Real Estate Lawyer
You run a lot of risk as a landlord, which is why it’s so important to be legally protected. A real estate lawyer is an essential member of the property management team as they can provide legal advice on various matters such as tenant disputes, evictions, and lease agreements. They can also help landlords navigate complex laws and regulations. Rental and housing laws vary from state to state. It would be difficult for a landlord to stay up to date with new provisions.
You may rely on their legal expertise to warn you away from transactions and relationships that could leave you in a precarious position later on. When buying a house or renting out your property, keep in mind that you’ll need to sign a ton of paperwork, so it pays to have a professional walk you through all the legalities.
Inspector
Hiring a specialist who can perform a thorough examination makes sense even if you have the opportunity to visit the property in person. Many property inspectors have previous construction experience. They can pay great attention to details while they examine the property’s condition. You can miss some aspects if you conduct a self-inspection of the property if you lack the skilled eye of an inspector.
An inspector can help landlords ensure that their properties are up to code and meet safety requirements. They can also identify any potential problems such as mold, asbestos, or structural issues. They could also calculate the repair costs before you purchase the property.
Rental Agent
A rental agent can help landlords find and screen potential tenants. They can also handle lease agreements, rent collection, and tenant communication. A good rental agent can save landlords time and money by ensuring that the property is occupied by reliable tenants.
They are responsible for presenting your property to those most likely to rent it. They have to determine your niche and develop marketing strategies that are directed at your ideal tenants.
Rental agents must have a clear strategy to find good tenants efficiently, in a short period. They can do this by advertising properties to attract potential tenants. It’s an advantage if they are tech-savvy. If they use online listing platforms like Padleads, they could increase their chances of finding great tenants. All they need to is create an attractive listing and syndicate it to popular websites so that more people can see it.
Although it is feasible to find tenants on your own, keep in mind that doing it by yourself usually takes a lot of time. No real estate owner wants their property to be empty for extended periods.
Advantages of having a Property Management Team
Building the right property management team can provide several benefits for landlords. Here are some advantages:
- Expertise: Each member of the team has specialized knowledge and skills in their respective fields, providing landlords with expert advice and guidance.
- Efficiency: Delegating tasks to the team members can save landlords time and help them focus on other important aspects of their business.
- Legal Compliance: Having a real estate lawyer and inspector on the team can help landlords ensure that their properties comply with relevant laws and regulations.
- Increased Profits: Hiring a team is an investment. They can provide advice on how to increase the value of the property and how to manage the rental efficiently, which can lead to higher rental rates and increased profits.
What to look for?
Choosing the right people to be part of your property management team is essential for the success of your rental business. Here are some factors to consider when selecting the individuals for your team:
Experience
Look for individuals who have experience in their respective fields. For example, a real estate lawyer with experience in landlord-tenant law can provide valuable advice on legal matters related to your rental properties.
Qualifications
Ensure that the individuals on your team have the necessary qualifications and licenses to perform their duties. For example, a contractor should be licensed and insured to perform repairs and renovations.
Reputation
Look for individuals who have a good reputation in their field. Ask for references or check online reviews to get an idea of their reputation.
Communication skills
Choose individuals who have excellent communication skills and are responsive to your needs. Good communication is essential for effective collaboration between team members.
Availability
Make sure that the individuals you choose are available when you need them. For example, a rental agent should be available to show your properties to potential tenants, and a contractor should be available for emergency repairs.
Compatibility
Choose individuals who share your goals and values and are compatible with your management style. A good fit between team members can lead to a more productive and positive working relationship.
By considering these factors, you can select the right individuals for your property management team. Building a strong team can help you achieve your rental business goals, improve tenant satisfaction, and increase your profits.
Building the right property management team is essential for landlords who want to run their businesses efficiently and effectively. Each member of the team brings specialized knowledge and skills that can provide numerous benefits.