Multifamily housing paves a path to wealth for real estate investors. These properties produce passive income with monthly rents and long-term wealth as the property value appreciates. Yet, many investors shy away from multifamily properties. Managing the property can feel intimidating and the process overwhelming.

Thankfully, an experienced property manager understands the day-to-day operational procedures. They handle the details, like tours and rent collection so you can keep your focus on growing your business.

Property Manager Responsibilities

When you have a good property manager, they take care of the stress and responsibility that comes with multifamily property ownership. If you use virtual real estate investing to own properties outside of your geographic area, property management is essential to your success.

Attract Tenants

One of the biggest deterrents against investing in multifamily properties is the fear of high vacancy rates. You can’t make money if you don’t have tenants. And, the process of finding tenants seems daunting.

When you hire a property manager, part of their job is to attract tenants. They advertise your property, manage online listing tools and maintain the property’s reputation. Plus, they vet new tenants to determine if they will make good renters.

As the owner, you set the standard guidelines for renters and establish the specifics on the application. But, once you determine the structure, the property manager takes care of the rest. They hold tenant interviews, give property tours and fill vacancies.

Rent Collection

Property managers also manage rent collection. Today, collecting rent is easier than ever. Online platforms provide easy ways for tenants to pay and your property manager to track rental payments. For example, Venmo and PayPal provide easy online rent payment options.

Other specific multifamily applications offer online property management solutions, including direct payments with credit cards, checks and bank transfers. No matter how you choose to collect rent, your property manager has the responsibility to ensure each tenant pays. You maintain a steady stream of income without much leg-work.

Property Maintenance

Depending on the size of your multifamily property, the maintenance responsibilities can be great. Even small properties require regular attention to keep them in top shape. Property maintenance is likely the single most important function of a property manager. Especially for virtual investing where you aren’t physically present, hiring a property manager to maintain the property is non-negotiable.

The property manager’s responsibilities include: emergency and routine maintenance, aesthetic upkeep, maintaining safety and code compliance, managing maintenance contractors and coordinating any other property needs.

Additionally, the property manager enforces any HOA guidelines, like parking restrictions and unit upkeep. Your property manager ensures tenants are following the rules and receive the proper notice when they do not.

Tenant Accountability

Your property manager is responsible for holding tenants accountable to the lease agreement and property rules. It is in their best interests to find good tenants. Part of finding good tenants is managing the property well.

Whether there’s a noise complaint or a tenant fails to pay rent, the property manager must deal with the issue. Also, the property manager has the right to hold routine property inspections to ensure tenants are following all clauses of the lease. Your property manager is the eyes and ears for your investment.

Can You Afford a Property Manager?

The better question is can you afford NOT to hire a property manager! Not only do they take care of physical needs of your real estate investment, they make solid economic sense.

Most property managers receive a percent of the property’s monthly income. Therefore, they have an incentive to keep vacancy rates low and property values high. A good property manager understands the importance of maintaining the reputation of the property.

It’s a symbiotic relationship. Both you and the property manager benefit from quality service. Typically, you don’t need to worry about motivating a property manager to do a good job. Plus, they pay for themselves when you can spend your time growing your real estate investment business rather than dealing with rent collection or tenant maintenance requests.

Invest in a Property Manager

Hiring a property manager is one of the best solutions to make your multifamily real estate investment pay off. Ease your stress and grow both your passive income and long-term wealth.

CTTO Article Source: www.biggerpockets.com