Are you tired of the constant hassle and stress that comes with managing your single family rental properties? Are you struggling to balance all the responsibilities of being a landlord while also maintaining your long-term real estate investment goals? If so, it’s time to consider hiring a single family property management company. In this blog post, we’ll explore why outsourcing the day-to-day tasks of property management can be the key to unlocking success in your real estate investments.
What is a Property Management Company?
A property management company is a professional service that manages the day-to-day operations of a rental property. This includes tasks such as marketing the property, screening tenants, collecting rent, maintaining the value property, and dealing with repairs and maintenance issues.
Property management companies usually charge a percentage of the monthly rent as their fee. For example, if your monthly rent is $5,000, and the property management company charges 10%, then you would pay the company $500 per month.
The Benefits of Hiring a Property Management Company
There are many advantages of hiring a property management company to manage your real estate portfolio. Perhaps the most important benefit is that it frees up your time. If you manage your own rental property, you will have to devote a significant amount of time to it each week. This can take away from your work, family, and social life. For most people, the main reason they build a real estate portfolio in the first place is to work less and create a stream of passive income. By outsourcing all of the day-to-day management tasks of your rental properties, it not only fulfills that initial goal but also provides you, as an investor, with more time (and resources) to seek other opportunities to grow your real estate portfolio.
Another benefit is that a property management company has the experience and knowledge to effectively manage a rental property. They know how to market properties, screen tenants, collect rent, and deal with repairs and maintenance issues. This can save you a lot of money and headaches in the long run. We’ll touch on this in more detail later in this post.
In Seattle, and certainly in the last few years with the COVID-19 Pandemic, laws have changed, the economy has changed, and much of that has had an effect on the rental market. It’s not easy to stay on top of those laws, rules, and regulations at all times. More importantly, it can be costly when you don’t see changes coming and have to quickly get all of your properties in line after the fact. A priceless benefit of a property management company is that professionals with their finger on the pulse of the industry are handling all of this for you.
Ultimately, the most important benefit that relates to all of the above is that hiring a property management company will give you peace of mind. Knowing that your investments are in good hands is not just saving you time and money, it’s taking away the unneeded stress that can happen when dealing with laws, maintenance, tenants, and more. You can relax and enjoy your life while they take care of everything else.
Single Family Property Management & The Benefits of Hiring a Property Manager for your Real Estate Portfolio
Real estate investing can come in many forms: single family homes, multifamily buildings, office spaces, and more. It is the same for property management companies – just like how investors can specialize in one type of property, property management companies often do the same.
North Pacific Property Management has a long history of managing single and multifamily homes. In 2022, we began to focus our energy on solely working with real estate investors with single family rental properties.
Here’s are a few of the benefits of hiring a property management company for a single family home:
- Single family property managers have more experience dealing with a higher volume of tenants than an owner could manage on their own.
This experience is vital to not only the experience of each tenant, but avoiding legal issues, reducing costs in the long run, and upholding the quality of the property itself. Common examples of where this experience is plays a role include screening tenants according to state guidelines, handling rent collection, managing repairs, working with service providers, and preventative maintenance to keep properties running.
- Single family property managers are typically more responsive to tenant needs and concerns than an owner can be.
The property, and the tenant residing in it, are the top priority of the property manager whereas the property owner might have another job, other properties, or concerns outside of the single family home they are renting out. In addition to this, the infrastructure in place by a property management company typically allows for better communication, faster payments, and quicker resolutions when problems occur.
- For investors with multiple single family property rentals, having a single property management company handle their full portfolio greatly reduces the time and cost needed to dedicate to their real estate holdings as a whole. Instead of dealing with tenants, service providers, and maintenance in regards to each individual rental, an owner only needs to connect with the property management company as needed.
- Single family property managers typically have better relationships with local vendors and service providers. This can lead to lower costs for repairs and maintenance, as well as faster response times when there are problems at your property.
While we can’t speak for all property management companies, North Pacific Property Management confirms that all service providers are licensed, bonded, and insured before working on any properties we manage. This protects our clients and ensures the quality of the properties.
- Single family property managers understand the unique needs of investors like you because it’s their job! They know that your goal is to make money from your investment properties, so they’ll work hard to keep your costs down while still providing high-quality service to your tenants.
What Property Management Companies Do For You
While we can’t speak for every property management company, we are proud to say that North Pacific Property Management handles every facet of rental property ownership for our clients. Here are a few of the most important tasks that will be handled for you by any reputable property management company:
- Marketing the property, screening tenants, completing tenant verifications to ensure qualified renters are placed. They will also be experienced in dealing with difficult tenants and handling evictions, if necessary.
- All of the day-to-day tasks of being a landlord, such as collecting rent, responding to repair requests, and dealing with lease renewals. There is also nitty-gritty details such as tenants following the agreements in their lease as they pertain to pet policies, parking, and general maintenance of the home they are renting.
- Maintaining the property is a given, but a good property management company will do more than just keep the lights on and the floors clean. Keeping the property up-to-date and marketable is a vital to ensure the integrity of the property and realistic cost of rent.
- Finally, a professional property management company will have the resources and knowledge to effectively market your rental home and keep it rented within the competitive rates for the area. They will also be able to provide you with useful data and insights about the rental market in your area so that you are charging a fair and realistic price for the property. This information also plays a big role when you look to grow your portfolio.
When deciding on a property manager, ensure that all of the above is offered in their service agreement. As North Pacific Property Management is a full service property management company, our goal is for you as a real estate investor to be as hands-off and stress-free as possible.
How to Find the Right Property Management Company for Single Family Homes
As a real estate investor, you know that one of the keys to successful long-term investing is finding the right partners to work with when it comes to construction, maintenance, mortgages, and managing the property. management company. Here are a few things to look for when choosing a property management company for your single family home:
- Experience and expertise.
Make sure the company you choose has experience managing single family homes. They should understand the unique challenges that come with managing a single family home, such as maintaining the property, screening tenants, and handling rent collection in a convenient way.
- A comprehensive approach.
Look for a company that takes a comprehensive approach to property management, including everything from marketing your rental property to screening tenants and handling repairs and maintenance.
- A commitment to customer service.
Choose a company that is committed to providing excellent customer service. This means they should be responsive to your needs and concerns, and always keep you updated on what’s going on with your property. Tenants are quicker to leave a bad review for bad service than a good review for stellar service, so don’t give any opportunity for good tenants to become unhappy.
- Competitive pricing.
Be sure to compare pricing between different companies before making a decision. Like everything else, there are likely budget options out there as well as overpriced companies. Value is what you make of it so ask what they handle, what is required of you as the property owner, and determine if the time and stress they are saving you is worth what they are charging.
By following these tips, you can be sure that you find the right property management company for your single family home – and set yourself up for long-term success as a real estate investor!
Hiring a single family property management company is the best way to ensure you can successfully and sustainably invest in real estate. Not only will they help you stay organized, but they can also provide invaluable guidance and advice as you look to grow your real estate portfolio. With their help, you can focus on long-term success by minimizing risk and maximizing returns from your investments. Investing in real estate doesn’t have to be a daunting task; with the right partners at your side, it can be an exciting and profitable venture!
Have questions about information in this post? Contact North Pacific Property Management today and our real estate experts will answer any questions you have about property management, real estate, and more!