What is a Property Manager ?
Property manager helps home owner from Collecting Rent to Finding Tenants. A property manager is a third party who is hired by a homeowner or property investor to manage the day-to-day operations at rental property.
Why hire a Property Manager ?
Do i need to hire a Property Manager Why? olBecause ,property manager protects your investment .
Here are some reasons why hiring a good property manager is so important.
A property manager will allow you to make more money net more revenue in the long term due to the increased care of the property. They will get quality tenants remain in the property longer and have less damage and repairs to deal with.Your property remains in great shape.
Property Managers Will Save You Lots of Time and Stress . Relinquishing these ongoing responsibilities to a good property manager can allow you to benefit from your investment without sacrificing your time and health.
Property Managers finds Quality Tenants due to Thorough Screening and a Larger Pool Of Potential Renters .An established property manager may also have waiting lists of potential tenants. The result provides better quality tenants in less time.
Property Managers are familiar with the Law . One of the biggest advantages to hiring a professional property manager is the ability to avoid some legal hassles. With a full understanding of all the state and federal laws when it comes to discrimination in screening and selecting tenants, property managers avoid breaking discrimination laws. In the event that an eviction becomes necessary, an experienced property manager will know how to handle the process that will save time and money while staying within the boundaries of the law.
Property Managers Serve As a Buffer Between Owners and Tenants.When issues arise, a professional property manager is better equipped to handle issues effectively.
In General : You know that owning a rental property can be financially rewarding. However, managing that property requires a large commitment of time and effort. If you don’t have the time or resources to devote yourself to the task of managing your property, hiring a property manager may be your best option.
1.Achieve OVERALL OBJECTIVES of the owner :
A property manager needs to be responsible in assisting a client ,working with the team to meet owners objective in the performance of maximizing the performance and achieves owners goals and objectives
Property Manager Establishes rental rate by surveying local rental rates; calculating overhead costs, depreciation, taxes, and profit goals. Attracts tenants by advertising vacancies; obtaining referrals from current tenants; explaining advantages of location and services; showing units.
Full service property management generally includes all or most of the following responsibilities: acting as the first point of contact for tenants, building workers and maintenance contracts as well as maintaining professional relationships with an accountant, insurance agent and attorney if necessary.
What Does a Property Management Company Do? Management companies deal directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions.
2 .Preservation – Thru Proper Maintenance
Preserving and ideally increasing the value of owner properties is one of the chief roles of a property management company. Tenant requests should be addressed promptly and owners provided with transparent system for seeing how their money is being spent. A competent manager accomplishes all of this with the assistance of both internal staff and their network of qualified, licensed vendors whom they have vetted for excellent cost effective service.
3. Value Enhancement
Low-Cost Tips to Increase Property ValueThere are simple things any property owner can do which can boost the appeal of your property. While these simple tips may not add tens of thousands of dollars to your property’s value, without doing them, you may not be able to realize the full potential value of your property. These fixes can be done without having to hire any outside help. Although they are low cost, they can make a huge difference in the way your property looks.
Moderate/High-Cost Tips to Increase Property ValueThere are updates you can make to a property that can have an average to high cost depending on the extent of the renovation done and the materials chosen. These types of updates have the potential to add significant value to your property.
Do Not Over-ImproveWhile you want to improve your property and increase the value, you also want to be cautious so that you do not over-improve your property. You don’t want to spend an amount of money on a renovation where you will not see a return on your investment. For example, putting high-end Viking appliances in a home in a middle-class neighborhood would be an over-improvement.
Before you renovate, do some research on your area to find out how much the property will be worth after the renovations, otherwise known as the After-Repair-Value or ARV. Once you properly gauge this new value, you can deduct the price you paid for the home and what you are left with is the maximum price you should spend for the renovation and any soft costs such as financing charges, closing costs, and holding costs if the property will sit vacant while the renovations occur.
4. Income Generation
The true goal of every real estate investor should be to create massive, passive income as soon as possible. “Passive income” means money that comes to you month in/month out, without your having to do a thing to get it.
Well, if you went out and bought a couple dozen single-family houses and rented them out, you would create a decent income. Good, but not great.
It’s going to take you a little time to find all of those deals, and then you would have to manage all of those tenants.
Those people are called “management companies,” and they make a living by shielding investors from the day-to-day maintenance of their properties. That way, people like us can go out and continue to do what we do best: Find more properties and create more cash flow.
5. Highest and best-use to maximize income
The concept of highest and best use is one of the fundamental principles that underlie real estate appraisal. Highest and best use requires that the appraisal considers not just the current use of the property but also the potential value associated with alternative uses.
Highest and best use – the reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. … The definition indicates two types of highest and best use.
It maybe ( for Estate Planning and Succession purposes )
Estate planning is the process of accumulating, preservation and distribution assets to achieve your financial goals during your lifetime, and to provide for your heirs according to your wishes at death. As such, estate planning is not a one-time event. Instead, it is an ongoing process designed to accomplish accumulation, preservation and distribution objectives, both during your lifetime and after your death.
The purpose of this guide is to assist you in understanding the estate planning process and to serve as a framework resulting in the development of a new estate plan or the updating of an existing plan.
Accumulation – process of accumulation, management, conservation, and transfer of wealth considering legal, tax, and personal objectives
Preservation –What will happen to your family legacy when you’re gone? Ensuring that your children and designated beneficiaries inherit the wealth you’ve created is important. But without proper planning and professional guidance, much of your hard-earned family legacy may end up in the hands of the IRS rather than your beneficiaries. Taking the necessary steps today can help alleviate the burden to your family down the road.
Distribution – Distribution of the estate’s assets requires that creditors be paid before heirs receive any inheritances. All legitimate debts and funeral expenses must be included. Creditors are required to submit claims for payment of their debts. According to the laws in the state where probate has been opened, creditors must submit their claims within a certain deadline. Once debts are paid, estate taxes are next. Any assets that remain are then distributed to the appropriate heirs or beneficiaries.