For many property investors, the main objective is to increase ROI and maximize cash flow, and the correct fundamental principles of property management can make that possible. It can also quickly become a stressful task which requires an ongoing routine, especially when regulations are involved.
Often, when we think about the efforts required for managing a property, the tasks may seem simple. Find a tenant, get the contract signed, collect rent and make sure the house stays in good shape. When it comes to putting this theory into practice, however, the details and the level of time and effort extend far beyond the series of tasks previously outlined.
Property Managers in Calgary significantly contribute to meeting the objectives of income properties, regardless if it involves a single unit or a portfolio of different properties.
1) Finding Tenants
The most significant advantage that professional property managers offer is that they already have an established client database. They can tap into this database for potential residents and pick the right ones for your property. Having a customer database plays a huge role in successful property management because the longer your house stays vacant, the more the carrying costs would be. Property managers can reduce the vacancy time significantly, and that alone can have an enormous impact on the overall revenue you get on an annual basis, especially if you have multiple rental properties. Another benefit of having a property manager is that you can get insights on what the optimal rent should be because of their exceptional local market knowledge.
2) Filtering Tenants
One of the factors that determine the overall value of property in a neighbourhood is the type of tenants living in the property. You need to have a keen eye to judge a person’s ability to maintain payment and upkeep your property through background checks and credit history. Property managers can take on the role of filtering applicants by running thorough background checks which can include work history, criminal records, and credit reports (through credit check services). Just implying that you will be running background checks can deter a lot of applicants with less than adequate backgrounds.
In order to find tenants, there is a lot more effort that is needed, especially online. Almost 94% of buyers and renters begin their search online, advertisement also plays a crucial role in getting your property in front of the right tenants. However, getting your property discovered and finding tenants only serves as the initial responsibility of property managers. In the next part of our blog, Urban Dwellings Calgary will explore the other benefits property managers offer to income property owners.