Recent statistics show that 64% of American adults own real estate. This has lowered slightly from the 67.9% of American real estate owners in 2020.
If you are an absentee homeowner, you may need Memphis property management. A property manager can help with tasks you don’t have time for.
With so many Americans owning real estate, the demand for property management is higher than ever. This guide will help you figure out how to choose the right management company.
Keep reading to find out what to look for in a Memphis property management company.
What Is a Property Manager?
The first things we need to discuss are the basics when it comes to property management. Before making this investment, you want to know what you get out of it.
A property manager provides a variety of daily rental operations. This frees up your time and allows you to focus on other aspects of your job and life.
You can use a Memphis property manager if you are in professional real estate. Or you could use a manager if you are an absentee homeowner who wants to rent out your property.
The manager takes over your responsibilities as a stand-in land owner. They help to locate and screen potential tenants to rent your real estate property.
They handle other factors like the legalities, documentation, and inspections. Managers also help with accounting and managing your real estate reports.
Benefits of Hiring a Property Manager
A lot of real estate owners may feel hesitant about hiring a property manager. This is understandable since it is an investment, and you don’t want to be too hasty.
The reality is that there are many reasons why this is a good idea. It can be very beneficial whether you rent the property for a living or have an extra property on the side.
When it comes to renting out a property, there are a few difficult areas to consider. One of the main difficulties is finding the right kind of tenant.
You may not have access to resources to help you do this. Or you may not have the time to properly vet every tenant option you have.
A property manager takes over this process, using their resources and tools. They have a better chance of finding reliable and long-term tenant options.
This increases the chances of finding a tenant that pays on time and is trustworthy. Reducing the risk of getting a tenant that will cause problems later on.
Less Legal Worries
Believe it or not, there are a lot of legal aspects that go into real estate. It is not as simple as owning real estate and renting it out to make a profit.
You have to make sure you are following local regulations and tenant laws. There are certain laws about how you disqualify tenants and screen them.
If you don’t follow these laws, you could end up in hot water later on. A property manager understands the legal side and makes sure all of the rules are followed.
This includes making sure the property is safe and up to local conditions standards. They also handle tenant evictions so that they can’t come back and try to sue you.
Because of this, hiring a property manager is one of the best investments you can make. It may feel expensive, but it can save you a lot of legal fees in the future.
There are several issues you can run into as a landlord. One of the most common issues is having to deal with vacancies.
You may have had a tenant break their lease unexpectedly. On the other hand, you may have run into difficulties finding another tenant after a lease was up.
A property manager manages everything regarding tenant relations. This includes preparing the property to be rented out after a tenant has left.
They also market your properties with the local demographics in mind. They have resources that allow them to access a wider pool of tenants to fill up properties faster.
This ensures that you won’t lose money from long vacancy periods.
Efficient Rent Collection
As a landlord, you have many different tasks you have to manage monthly and weekly. A monthly task includes collecting rent from your tenants.
This is easier said than done since some tenants pay late all the time. A professional property manager manages rent collection and tenants.
They provide easy ways to pay to encourage tenants to pay on time. If tenants aren’t paying, the property manager will deal with them on your behalf.
Property managers also handle all of the documentation regarding rent collection. If a tenant refuses to pay rent, they can evict them and find a new tenant for you.
This allows you to focus on other aspects of your real estate that also need attention.
Repair and Maintenance Services
Part of your job as a real estate owner is managing your properties. This includes making repairs and doing maintenance tasks as necessary.
The problem with these things is that they often come up unexpectedly. This can make it difficult to have a schedule since you never know what you need to do.
Memphis property management companies handle these tasks for you. The manager is the person that tenants go to when repairs or maintenance is needed.
Property management companies also have the ability to get you better prices when it comes to repairs and maintenance.
How to Find the Right Property Management Company
Owning real estate can feel overwhelming at times. This is especially true if you want to rent it out to someone else to make a profit.
You need to know what to look for in a property management company for your situation. Here are some examples of things you need to look into before making a decision.
1. Read Reviews
One of the first things you need to do before hiring is look online. You can find a variety of useful information online about property management services.
One thing to specifically look into is online reviews. These are reviews written by past clients who worked with that Memphis property management company.
Look for reviews where the client was in a similar situation as you are. This can give you perspective on whether that company has experience in your area or not.
Don’t be scared off if you notice a few negative reviews about the company. A mixture of positive and negative reviews is very normal.
2. Consider Experience
Americans have access to a variety of real estate properties they can own. Because of this, property management services are quite broad.
It is important that you consider the experience that the company has. For instance, if you have a single-family property, you want a company with experience in the area.
Reedy and Company provide services for single-family and multi-family properties. This provides more versatility depending on the kind of real estate you own.
You should be able to find this information on the company website. Look under the services page to see what kind of property the managers cover.
If you still don’t understand the experience the company has, you can call the company directly. The customer service team should be able to give you some examples.
3. Look Local
When it comes to Memphis property management companies, there are a lot of options. There are thousands of companies you could go with, but you need to limit your list.
For one thing, it isn’t productive to look on too big of a scale. That is why it is ideal to look at your local options only.
You can narrow down your list to the best options without wasting as much time. It is also important since the company will have local property management experience.
The property managers will understand applicable laws and licensing requirements. They will also have a better understanding of market demographics.
Local property managers also have connections that could come in handy. As well as having access to resources when it comes to finding tenants.
4. Take Your Time
There are several mistakes that property owners make when looking for a manager. An example of a common mistake is moving too quickly.
If you are an absentee homeowner, you are probably in a rush to get help. You may not have the resources or the time you need to find a tenant.
The reality is that making a decision too quickly is not going to be a good idea. It doesn’t give you time to research your options to find the best company.
You want to choose a company that you can continue to work with for many years to come. This is especially important if you plan on buying additional real estate properties.
You may begin working with a property manager only to discover that they don’t provide what you need.
5. Consider Licensing
There are certain things that property managers need to have. In the majority of states, they’re required to have licensing and certification.
Some examples include a real estate broker’s license or a property management license. You only want to go with a company that has the necessary licensing for that area.
This ensures that this company is high-quality and reputable. The company is working legally and has the education required to get the job done.
6. Look at Services
The majority of Memphis property management companies provide the same things. These companies provide property managers that help you with your landlord duties.
But there are some companies that provide additional services that others don’t. Or other companies may only provide a limited amount of options.
You want to make sure that all of the services you need are covered by the company. You also want to prioritize companies that use the latest processes and technology.
They should have paperless systems in place to make tasks easier for tenets. They should also stay up-to-date on the latest trends and demographics.
These are all details that show that the company is growing and improving. This is important if you want to continue working with the company for the foreseeable future.
7. Ask Questions
It is always a good idea to meet a company before you go with them. If you’re looking into Memphis property management, you can see if a consultation is available.
A consultation allows you to meet one of the property managers to get to know them. You can understand how the company works and ask any questions you have.
This is a good time to see if that company has handled situations like yours. Or you may be facing an issue and you want to see if the company has a solution.
Memphis property managers should be fast-thinking and problem solvers. They need to have good people skills and clear communication.
How you interact with the manager is important since you will work closely with them. You want to find someone you get along with and enjoy communicating with.
Memphis Property Management: Finding the Right Company
If you are an absentee homeowner, you may feel overwhelmed when renting out your property. That is why it is ideal to hire a Memphis property management company.
You need to find a company with good reviews and experience in your area as well as a company that is local and has the right licensing.
Are you interested in hiring Memphis property managers? Contact us today at Reedy and Company to get started.