As a real estate investor, you know that there are many good reasons to work with a property manager. For example, you get a lot of your time back because your management company is handling all those leasing, management, and maintenance details so you don’t have to. You also don’t have to worry about violating a fair housing law or a security deposit requirement accidentally.
Property managers are an invaluable resource.
What’s especially great about working with an experienced team, however, is that you can maximize what you earn.
A lot of rental property owners focus too much on that management fee and what it will cost them.
The truth is, it costs you more to continue managing on your own. You’re missing out on a lot of resources, tools, discounts, and expertise. You’re increasing your legal liability and potentially losing money on longer vacancies and tenant turnovers.
Here’s how you can maximize profitability with a Philadelphia property management company.
Preventative Maintenance is a Priority for Philadelphia Property Managers
If you’re doing a good job of handling emergency maintenance and routine repairs, you’re doing exactly what a landlord should do.
But if you’re a real estate investor concerned with the ongoing condition and value of your investment, you need to do more than that. You need to focus on preventative maintenance. That takes a lot of time and resources, and a property manager is almost always better equipped to take a preventative and proactive approach to your property and its systems and functions.
When you invest in preventative maintenance, you will save yourself a lot of money on unexpected repairs.
That increases your earnings and profitability.
Preventative maintenance keeps you from spending money on recurring repairs. It also reduces the risk of surprises repairs and replacements.
A good property manager will have your HVAC unit inspected and services annually, for example. The $200 charge is a lot better for your budget than the $10,000 you’ll have to spend on a new furnace or air conditioning unit. A good HVAC tech can clean the system, look for potential issues, and let you know how much longer you can expect it to run efficiently.
Property managers will also stay on top of pest control, landscaping, plumbing, and roofing. They’ll check the appliances in your rental home and decide when repairing them no longer makes sense and it’s time to replace them.
Understanding the Philadelphia Rental Market
Property managers in Philadelphia understand the local market better than you do.
That knowledge and expertise can be used to maximize your returns and increase the rental value of your property.
You need this insight to effectively and accurately price your rental home, invest in repairs, and attract good tenants. Property managers will understand your competition and the demands of your tenants.
This local market knowledge allows your management company to gather the data you need. They know the properties that are renting and how much they’re renting for. They’ve evaluated the vacancy times, and they know which homes are renting faster and why. Avoiding vacancy is one of the best ways to increase what you earn, and property managers limit your vacancy period.
Tenant Relationships and Retention Improve ROI
Whether you’ve managed one turnover or a dozen, you know that some of your largest expenses can be found in vacancy and turnover costs. It’s more than not earning rent. During a vacancy, you’re also paying for utilities, maintenance, cleaning, security, and general upkeep. You don’t have anyone in the property who can let you know that a sink is leaking or the heat isn’t working.
Holding onto your good tenants is important. It saves you money and increases the long term ROI on your investment property.
It might be hard to invest in tenant retention as an independent landlord. But property managers have plans in place to remain responsive and communicative. You’ll count on them to establish a good working relationship with your residents that will ultimately lead to a lease renewal.
Happy tenants lead to happy owners. Earn more money by allowing your property manager to provide a positive rental experience to your tenants.
Property Management Technology Drives ROI
Tenants want to pay rent online and request maintenance help electronically. When they’re looking for homes, they want video tours in the listing and self-showings so they can take a look around on their own time. They’ll expect an online application.
Professional property managers in Philadelphia can invest in good property management technology that delivers better services for you and your tenant.
It’s difficult for a landlord who manages on their own to invest in the software that’s required to track income and expenses, collect rent online, syndicate marketing listings, and manage property inspection reports.
A property manager stays up to date on all the latest platforms and software, however. You can expect an online owner’s portal and a tenant portal, which keeps everything efficient and transparent.
This type of technology automates a large part of the leasing and management process, keeping your costs down and your revenues up. And, you’ll have a much easier time seeing exactly what you’ve earned and spent in a given month, quarter, or year.
Identifying Investment Opportunities
Finally, a property manager will help you maximize profit by identifying new opportunities for you. When you develop a great relationship with your management company, you’ll share your investment goals. Your property manager can make some suggestions on property improvements that might raise your rental value. You can expect to hear about new investment opportunities or properties that might fit into your portfolio.
Good property management makes you money. It’s more than the day-to-day work that your property manager does for you. It’s also the support and the resources that are provided while you’re on your investment journey.
Contact us at TCS Management if you’d like to know more about what it’s like to work with us.
TCS Management is a full service property management company headquartered in Philadelphia, Pennsylvania, also serving Harrisburg, PA, Cherry Hill, NJ, Wilmington, Delaware and the surrounding areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.
