Thinking about buying your first rental property? Already have a few and thinking of adding more? Then you should also be looking for a good property manager. Why? Here are seven solid reasons a property manager should be a part of your real estate investment strategy.

 

1: Cash Flow Management- Monthly cash flow is one of the primary ingredients for a successful real estate career. This means collecting rent on time every time from your tenants. Property managers know how to collect the rent from tenants when the rent is due and how to keep tenants from being delinquent.

2: Screening- And speaking of keeping tenants from being delinquent, property managers know how to properly screen tenants. Property managers will run a background check, running a credit report and contacting previous landlords for a rental history.

3: Market Data- Experienced property managers know the local real estate market inside and out. This means optimizing cash flow each month by setting the maximum rental rates based upon rental market data where your property is located.

4: Marketing Experience- When your unit needs to find a new tenant, your property manager will begin marketing the property well before the existing lease runs out, ensuring there are no vacancies in between tenants. At the same time, a property manager can also assist when you’re thinking about selling as property managers typically have an established relationship with a real estate brokerage.

5: Compliance- Real estate has its own set of rules and regulations and property managers make sure your unit and your lease agreements comply with these laws. You don’t want to be on the receiving end of a legitimate discrimination suit from someone who had their lease application turned down.

6: Maintenance and Emergencies- Property Managers take care of regular maintenance and also oversee any emergency repairs such as a hot water heater going out or the HVAC system is on the blink. There’s no need for you to answer maintenance calls, they’re taken care of for you.

7: Financials- Property managers provide regular profit and loss statements and list income and expenses on a monthly basis and can make suggestions on how to improve cash flow. At the end of the year, you’ll be provided with all the financial data you need to complete your federal income tax returns.