Property managers work hard to maximize profits for property owners. Since property managers are on the front lines dealing with prospects, tenants, and vendors, they have a unique perspective on your income property. It pays to lean on the professional experience of your property manager.
Here are five things property managers wish real estate owners knew about income properties.
1. Finding Qualified Tenants Can Be Difficult
Property managers like to keep low vacancy rates to maximize income for the property owner.
But finding qualified tenants isn’t always as easy as you might expect. Savvy property managers market the unit to qualified buyers using smart features like PropStream’s Landing Page Creator. Landing pages are single-page websites created solely to provide more information about the property and invite tenants to apply. Property managers can then market the property all over social media and even create online ads to drive traffic to this landing page.
A unit may sit vacant for a few weeks, but your property manager is likely doing everything possible to find a qualified tenant.
2. Tenants Can Be Hard on the Property
Property owners are regularly surprised by how hard tenants can be on a property. Property managers insert clauses in the lease to mitigate damage, and they keep an eye on the property’s exterior, but without legal permission to enter the residence, there’s only so much a property manager can do.
Furthermore, when processing deposit refunds, property managers might not be able to use the deposit to cover some of the damage. In most states, the landlord is expected to handle painting costs and cleaning costs after a certain number of years because of “normal wear and tear.”
3. Accepting Pets Can Generate More Income
Your property manager knows that lots of renters have pets. By accepting pets, your units will be in greater demand. In addition to renting faster and for more money, most states allow property owners to charge a monthly “pet rent,“ which increases profits for the owner.
If you’re worried about pet damage, most states allow you to charge a “pet deposit” in addition to the standard security deposit. This pet deposit can be used as needed to cover any damage caused by the pet.
4. Rehabbing the Property Will Increase Your Bottom Line
A rehabbed property makes your property manager’s life a lot easier. The units will have more interest from qualified renters, making it easier for your property manager to keep the units occupied. But the main reason to rehab the property is to increase your bottom line. You’ll be able to charge higher rents for a rehabbed property.
To maximize your ROI, use PropStream’s rehab estimator tool when projecting your rehab costs. This tool uses local material and labor costs so you can more accurately estimate project expenses and plan accordingly.
5. Common Areas Don’t Get Much Use, But They Move Units
As a property owner, you may be disappointed to see that residents aren’t taking advantage of your common area amenities like fitness centers, pools, or greenspaces. But your property manager wants you to know that these areas generate heavy interest during property tours. People imagine the lifestyle these amenities will provide, and they fall in love with the property because of them.
It’s not a bad thing that they don’t get much use on a daily basis. It means less wear and tear and lower maintenance costs. So before deciding the little-used fitness center should be converted into another apartment, consider how these common area facilities seal the deal during property tours.