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Saturday, June 20, 2009

5 Benefits of a Property Manager

Don't ask the shoe salesman if you need new shoes...and don't ask me if you need a property manager, the answer is always YES. But, here are my top 5 reasons on why a professional property management company will benefit you.

1. Rates for Rent - A good property management company knows the area they are managing. They know how much your property can be rented for and can keep the vacancy rates and advertising costs as low as possible.

2. Professional Network. Property managers develop relationships with professionals in related fields, such as maintenance workers, tradesmen, vendors, supplies and contractors that you do not have. Because of the bulk of business that a property manager gives these professionals, they can provide quality work at a discount.

3. Securing Tenants- finding good tenants can be very time consuming. A property manager can take care of securing all background checks, credit reports, employment verification, and verifications of rent and showing the property. By hiring a property manager you will not have to deal with tenant disputes, conflict resolution and emergency maintenance.

4. Time - Enjoying your life while just having the rents deposited into your bank account is probably why you got into real estate investing. Real Estate income is not passive if you are spending all your time maintaining the property, handling tenants and keeping the books. A Property Manager is an investment, not an expense, you want to own your own time.

5. Rent Collection and Depositing - not getting the rent check just one month can kill your cashflow. Having to constantly remind tenants that their rent is due or late can be a real pain. A good property manager will have systems in place to effectively collect rent and maintain on-time payments.

Real Estate Investing is about creating passive income, not waking up in the middle of the night to go fix your tenants sink.

Jordan_D

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