The decision to invest into multiple properties for rental purposes can be a great choice for long term investments. However, most people may not be ready for the work combined with the dedication that it takes to upkeep and manage tenants for it to be a successful venture. For that purpose, residential management companies are key in not only managing the day-to-day but ensuring that the upkeep and return on investment is on track.
We asked Judge Realty’s VP of Residential Property Management, Emily Kelley and Assistant VP Property Management Laurie Winslow to provide a closer look at the details involved in property management and the challenges faced.
What are some of the struggles that most owners don’t realize accompany operating rental properties?
I often see that most owners who self-manage have difficulty with receiving payments on time, the pre-screening process, and placing the right people in the space. I would rather have a home sit vacant for a few extra weeks knowing that I’m putting a qualified tenant in the unit that is going to take care of the property and pay the rent on time every month. We know exactly what to look for, and have a great system in place to ensure we are renting to someone who are low risks for non payment.
What are some things beyond taking care of the pre-screening and placement that residential management companies assist on?
We ensure legal compliance during all the processes involved from marketing a property, showing the property, leasing it, and the move in/ move out processes. Most owners are not familiar with contractual stipulations that must be applied in order to protect both the owners and the renters. In addition, the constant communication and activity involved with the tenant that comes with the responsibility of being a landlord is often overlooked. It is a full-time job that most owners are not prepared for.
What are some of the financial risks and gains involved with owning rental properties?
Accounting is something owners with multiple properties struggle with (or even someone with one property can struggle with). Using a residential management company makes it very easy, you get monthly statements as well as a year end statement of all income and expenses. This makes accounting less stressful for owners and streamlined.
Maintenance is another area that can be costly if not done correctly but also very time consuming and complex. A residential management company will facilitate all this for you, obtain estimates, oversee the work, and ensure work is done properly and up to code which in the end will save you money and sanity.
What is a typical day like for a property manager?
There is not a typical day in property management. You can come in with a list of items you want to do, and a call from a tenant or owner can rearrange your entire day depending on the situation and how complex the situation might be.
You can also be bombarded with calls for showings of units and that will deviate you away from your planned schedule. Property management is a juggle from minute to minute as to what takes priority, yet everything is extremely time sensitive with no exceptions.
Communicating clearly upfront with tenants and owners and being organized helps, but there is never a typical day.
Judge Realty now manages over 200 properties both commercial and residential. Celebrating their 10 year anniversary this year, they are the only locally owned full service brokerage in Savannah, Georgia.
For more information about residential management contact Emily Kelley at firstname.lastname@example.org.