The key to effectively managing a single-family rental property during any economic cycle hinges on an investor’s ability to maximize their property’s value.
As the current U.S. unemployment rate hovers above Great Depression-Era levels, many property owners are having rent delinquency, leasing and management issues.
So, what can an investor do during the current economic situation to protect their asset? What immediate steps can they take to curtail delinquencies, sign new tenants and avoid long-term vacancies?
The first step is to ensure that the property generates steady monthly rental income in the most efficient manner, even when renters are losing their jobs. Oftentimes, ensuring that a rental produces steady returns, while minimizing vacancies is a full-time responsibility.
During a crisis like the COVID-19 pandemic when residents face unprecedented unemployment levels and challenges paying rent on time, a nominal investment in a property manager will save an investor money over the long term by keeping the property occupied. A knowledgeable, tech-focused property manager mitigates rental delinquencies, retains existing residents, signs new leases and ultimately protects long-term investments during even the most difficult market cycles.
Here are six reasons to consider hiring a property manager for asset protection and preservation in the midst of unprecedented economic challenges:
1. They optimize a rental property’s monthly returns and provide insight on long-term rental growth
A qualified property manager brings critical local market knowledge and applies it to the operations of each individual rental asset they manage. In other words, they understand the economic and supply and demand fundamentals in each submarket in which they operate. A savvy property manager provides investors with average rental rates in their submarket by utilizing rent comps, AI and machine learning to set market-rate rents that get the unit leased quickly.
An effective manager stays laser-focused on a few real-time metrics impacting their portfolios in order to help real estate owners maximize returns and minimize turnover, including:
- Rental delinquencies
- Percentage of new leases signed
- Pending move-outs
- Average rents
- Vacancy rates
By using technology to predict rental demand, an effective property manager can even help an investor determine where to buy rental property. At the end of the day, a good property management and investment team helps command as much value as possible for a rental unit.
2. They provide great customer service for both owners and residents
Property managers can espouse the great customer service they provide all day long. But is there any truth to what they’re saying? How does an investor know if the management team they’re selecting is actually a…