Property ManagementProfessional Property Management Is Not Always a Bad Idea Despite Its Costs by Nadia Abulatif January 12, 2018February 12, 2019 by Nadia Abulatif January 12, 2018February 12, 2019No matter how experienced you are, as a real estate investor, professional property management is always a great idea. This article is all about why you need it and how can it contribute to the growth of your investment business. Keep reading.When it comes to hiring professional property management, an investor’s concern is the costs. Yes, you will have to pay a property manager in order to take care of your property, which adds up to your rental expenses. However, what is professional property management? And what makes it worth its costs to an investor?Related: What Are the Most Important Types of Investment Management You Need in Real Estate?What is professional property management?Professional property management is the administration of rental properties that belong to others. It includes all the tasks that contribute to preserving the value of the property as well as your rental income. The investors, in this case, pay the professional property firm fees that are taken from the rental income, which adds them to the rental expenses.When do real estate investors need professional property management?There are a few reasons a real estate investor might need to hire professional property management for his/her properties. First of all, if you are a part-time investor, a property manager is a must. You must understand that getting involved in real estate investments requires time and effort. If you want to keep your career while investing in property, we doubt you will be able to dedicate your time to taking care of your business. Therefore, professional property management will take care of your business by acting on your behalf.Another reason for hiring professional property management services is being inexperienced. Know that managing real estate property requires performing day-to-day operations. This also requires knowledge and experience. So, if you are a beginner real estate investor, you might want to consider hiring professional property management. You should do that, at least, at the beginning of your career as an investor until you acquire the required experience.Last but not least, you should hire professionals for managing multiple investment properties. Obviously, if you own multiple investment properties, things will get overwhelming. In this case, professional property management is the best solution to make sure your properties are operating well.Related: How to Know You Are Ready for Multiple Investment Properties?What are the tasks of professional property management?Collecting the rentIf you do not want to be bothered by collecting the rent, no worries. A property manager will take care of that. Not only that, but he/she will also make sure that your tenants are paying on time. He/she is also going to deal with rental arrears for you and eviction if needed. So, if you want to avoid the pain of dealing with such matters, professional property management will do it for you.Qualifying tenantsSimply, a property manager will make sure that you will have good tenants. So, a property manager will create the application, look through applicants, and choose the right tenants. This includes running a background check on potential tenants. All this is needed to make sure that your property is in good hands. Also, a property manager will listen to your tenants’ suggestions and complaints. He/she will make sure that they are satisfied. Another part of dealing with tenants is making sure they stick to the rules of the lease agreement.Marketing your rental property:Marketing also falls within professional property management. A property manager is responsible for making sure to maintain a high occupancy rate for your property. Otherwise, your rental income will get affected and you will not be making money in real estate but spending your own.Property maintenance:Another task that a property manager is responsible for is maintaining the rental property. This includes regular maintenance, cleaning, and repairing of any damages. Making sure that your tenants do not damage your property is also what professional property managers do. Regular inspections and check-ups are a huge part of that. After all, any damages are going to add up to your rental expenses, which will eventually affect your rental income.Budgeting:Setting a budget is important in order to keep track of your expenses as well as making sure you have a positive cash flow. Keep in mind that marketing, maintenance, and property management itself are among your rental expenses. Therefore, you will need real estate professionals to take care of that aspect for you.Legal matters:The legal aspect also falls within the responsibilities of professional property management. Making sure that your property is operating according to the laws and legislation of your state is important. Any legal mistake might cost you your whole business. Therefore, make sure you let professionals take care of it.You can always do it yourself thoughThe good thing about professional property management is that it’s not mandatory. You can choose to hire real estate professionals in the cases we have mentioned before. But also you can choose to do it yourself. However, you should keep in mind that property management requires some real estate education. You will have to learn about operating the different types of properties. Remember that managing traditional rentals is different from managing Airbnb rentals. In traditional rentals, you will have to make sure your tenants are paying on time, while in Airbnb rentals, though you will be paid in advance, you will deal with all types of guests.Also, managing one property is different from managing multiple investment properties. Things might get over the top with multiple properties. However, this does not mean that managing a single investment property is easy. It also requires time, effort, and patience. The only difference is that you will have to multiply all that to manage multiple properties.So, if you are willing to keep up with all the different tasks, then go ahead and be your own property manager.Related: Residential Property Management: Can Landlords Do It on Their Own or Do They Need Professional Property Management Services?When it comes to how to make money in real estate, Mashvisor is your destination. Make sure you sign up and enjoy our real estate services and tools. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL CostsMarketingTenants 0FacebookTwitterGoogle +PinterestLinkedin Nadia AbulatifNadia Abulatif is an experienced Content Writer at Mashvisor. She was a trainee lawyer before switching to writing about real estate. She is currently doing an LL.M. in Human Rights and International Law. Previous Post Real Estate Wars: The Show About Real Estate Agents Next Post 8 Signs a Fixer Upper Investment Property Is Not a Safe Investment Related Posts Step to Step Guide: How to Calculate Electricity Usage Cost and Charges How to Deal with Bad Income Property Tenants The Landlord’s Guide to Cash for Keys Professional Property Management Company: What Traits Should You Look For? 4 Things to Know Before Investing in Real Estate Should Investors Do Their Own Real Estate Property Management? Is Buying a Condo a Good Real Estate Investment? What Airbnb Occupancy Rate Can You Expect in 2018? 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