OPERATIONS
PROPERTY MANAGEMENT
SPONSORED CONTENT
Property Manager Due Diligence MAKE SURE YOU UNDERSTAND THE ROLE OF A PM AND HOW TO SELECT A RELIABLE ONE.
you’ll need to expend money to make the property “rent ready.” A good PM can find tenants and keep them for a time, which ultimately improves your cash flow. • MAXIMIZE RENT. Property managers understand the market, the neighborhoods, and the tenants likely to call your property “home.” Using their vast knowledge and resources, they can market rental properties to maximize the rental income, further improving your ability to cash flow and putting you on the road toward buying additional properties. • DEAL WITH ALL THE “STUFF.” Don’t like dealing with calls at 2 a.m.? Don’t like having to deal with tenants not paying? Then don’t!! Property managers are the interface among you, the landlord, and the tenant. Let them deal with all the other stuff and just present you with the rental income.
by Zach Lemaster
roperty managers (PM) are not typically considered an essential piece of your real estate investment team—unless you live out of state. Honestly, if you buy a local property there are a lot of compelling reasons you shouldn’t have a PM. The biggest reason people opt out of having a PM is the cost of their services cuts into your monthly cash flow. Still, having a PM can save you a lot of time, energy, and—probably most important—stress when it comes to your rental properties. P
WHAT PMs OFFER Let’s look at what PMs do (or should do): • FIND TENANTS AND AVOID
VACANCIES. Finding good tenants is not always easy. It takes time, advertising, and a serious level of vetting to place tenants who won’t cause damage to the property and will stay for years. The best way to kill your cash-flowing property is to have tenant turnover every year. You’ll end up not receiving rent for a couple of months (at best), plus
44 | think realty magazine :: november – december 2022
Made with FlippingBook Online newsletter