Homeowners invest in additional property to expand their portfolio or as part of their retirement plan. But whether it’s a single house, a duplex, or an apartment complex, every property owner needs to find a reliable and trustworthy property manager to take care of the day-to-day tasks.
A good property manager will have systems and policies in place to deal with any eventuality, from maintenance issues to bad tenants. But what does a good property manager actually do?
In this article, we’ll discuss seven things your property manager should have in place to keep your investment running smoothly.
1. Accurate Financial Reporting
Your property manager should provide you with accurate and timely financial reports. This includes a profit and loss statement, as well as a balance sheet. These reports will help you track the performance of your investment and make informed decisions about how to improve it. Owning rental property is a business, and like any business, you need to know where your money is going.
2. A Well-Maintained Property
Your property manager should keep your rental property in good condition. This includes regular maintenance and repairs, as well as preventive measures to avoid future problems. They would typically have a commercial lawn care company and a handyman on contract to take care of these tasks. A well-maintained property will not only be more valuable, but it will also be more attractive to potential tenants.
3. Screened Tenants
Your property manager should screen potential tenants carefully. This process should include a background check, as well as a credit check. By screening tenants carefully, you can avoid problem renters who may damage your property or fail to pay rent on time.
4. Rent Collection
Your property manager should collect rent from tenants on a timely basis. This includes sending out late notices and pursuing legal action if necessary. By collecting rent on time, you can avoid financial problems down the road.
5. Eviction Protection
Your property manager should have procedures in place to protect you from problem tenants. This includes following all state and local laws regarding eviction. By having these procedures in place, you can avoid the hassle and expense of dealing with problem tenants yourself.
6. Insurance Coverage
Your property manager should have adequate insurance coverage for your rental property. This includes liability insurance, as well as property damage insurance. By having adequate insurance coverage, you can protect yourself from financial loss in the event of an accident or natural disaster.
7. Regular Communication
Your property manager should communicate with you on a regular basis. This communication should include updates on the status of your rental property, as well as any problems or concerns that have arisen. By staying in touch with your property manager, you can stay informed about your investment and address any issues that may arise.
The Bottom Line
A good property manager can be a valuable asset to any rental property owner. By having these seven things in place, you can rest assured that your investment is in good hands.