With the condo boom slowing down, developers are placing less emphasis on continuous construction and more focus on better maintaining existing infrastructure. With demand cooling, developers are looking for experienced property managers to attract and retain tenants and prospective buyers.
Why are property managers necessary?
A competent property manager can add significant value to a property, which is why seasoned real estate investors will tell you that a good property management company is worth its weight in gold.
Here are a few ways that property managers provide value:
1. Higher Quality Tenants
Think of tenant screening as the moat and draw bridge around your castle. Though it is possible to reject a poor quality tenant, it is much easier to prevent them from ever entering. With thorough screening processes in place, only reliable tenants that meet these high standards will be selected:
- Pay on time
- Rent longer
- Put less wear and tear on the unit
- Cause less problems
An experienced property management company has seen thousands of rental applications and knows how to look at the information, as well as assess any red flags.
By allowing a property management company to manage your application process, you also prevent rental scams, discrimination lawsuits, and other pitfalls of the leasing process.
2. Fewer legal problems.
It only takes one difficult tenant to create a nightmare of legal and financial headaches. A qualified property manager has comprehensive understanding of landlord-tenant laws. Often times, they have an entire legal team dedicated to managing these affairs. Each state and municipality have their own laws concerning the following:
- Tenant screening
- Safety and property conditions of the property
- Lease addendums
- Terminating leases
- Handling security deposits
- Rent collection
Avoiding a single lawsuit can more than pay for property management fees, and spare time and pain.
3. Shorter vacancy cycles.
A property manager will help you perform three critical tasks that affect how long it takes to fill your vacancies:
- Improve and prepare the property for rent – A property manager will manage cosmetic improvements that increase revenue.
- Determine the best rent rate – Determining the optimal rate requires thorough understanding of local market conditions.
- Effectively market your property: An experience property management company can implement a successful marketing strategy.
4. Better tenant retention.
Lost rent is just one part of the equation. When changing tenants, numerous expenses are involved: a full cleaning of the premises, changing the locks, painting the walls and possibly new carpet or small repairs, in addition to marketing, screening, showing, and settling in a new tenant. It can be much more cost-effective to simply retain existing clientele.
5. Professional Rent Collection Practices
Rent is one of the primary revenue streams of any property. Property management is essential for a property to maintain consistent cash-flow, and keep strong relations with tenants. Property management can be the buffer between challenging tenants and owners.
6. HOA Management
Everyone has heard of horror stories of HOA Management gone awry. From incompetent management and corrupt companies, to cooking the books, the cost of mismanagement can be staggering. However, the right Association Management can keep all parties happy while maintaining a high operating surplus. Especially in South Florida, where fly-by-night operations are more common, integrous association managers can be hard to come by, which is why it is important to verify a prospective company, and make sure they have are accredited and have been recommended by others.
American Management Group (“AMG”), is recognized as a leader in South Florida property management. From Miami-Dade, Broward, and Palm Beach counties, AMG has been consistently chosen as a superior property management company.