At some point, every Memphis landlord wonders if they should hire a property manager. The simple answer to this question is: yes, with some caveats.
Think about it this way: what do you need a property manager for? In most cases, you want someone to take care of hands-on management for you. If your rental is mostly an investment, this is a great way to save a lot of time and effort.
Even if you don’t mind managing a rental, property management services still provide the best bang for the buck. Read on to learn more about why hiring a property manager is worth it and what this may cost you!
What Is the Role of Property Management?
Most rental property services deal with a wide variety of landlord activities. Some tasks you should consider outsourcing to a property manager include:
- Collecting rent
- Advertising the rental
- Screening tenants
- Overseeing maintenance
- Handling evictions
- Responding to tenant complaints
A reliable management firm also brings a lot of experience and know-how to your property. By choosing the right property manager, you’ll enjoy the peace of mind that comes with ensuring that your rental is in good hands.
Benefits of Hiring a Property Manager
Still not convinced that a property management firm is worth the cost? Here are some of the key benefits they can offer to your property.
Keep the Property in Good Condition
There’s a reason many landlord management tips deal with maintenance. Keeping tenants happy and complying with regulations often feels like a second job. Minor issues not addressed on time can quickly become major headaches, such as:
- Roof leaks
- Faulty appliances
- Floor repairs
A property manager will conduct regular inspections, nipping these issues in the bud. They’ll have contractors on standby to fix all problems quickly and reliably. A property manager can also offer advice on the best renovations for your rental.
Stay Competitive In the Market
The Memphis rental property market can be tricky to navigate. Though the city ranks fourth for rental investment returns, there’s plenty of competition. A lot of it comes down to choosing the right rental price for your property.
This is why many property management solutions revolve around rental appraisals. Instead of relying on the trial-and-error approach, you can have your manager calculate the true value of your property and set a competitive rental price.
Communicate With Tenants Efficiently
One of the biggest tenant management advantages of hiring a property manager is letting them handle emergency requests. No landlord enjoys getting a phone call in the middle of the night from a tenant who needs something right away.
In situations like these, a property manager can act as your point of contact. They’ll likely have a 24/7 emergency line to deal with tenant inquiries. They can also negotiate with tenants in your name and do it professionally.
Stay Compliant With Property Requirements
Rental property regulations are a combination of local, state, and federal laws. For instance, the Fair Housing Act plays an essential role in screening tenants. Rental property laws also cover other key aspects of running a property, such as:
- Lease terms
- Tenant rights
- Building codes
- Eviction procedures
With so much to keep in mind, many landlords inadvertently slip out of compliance at some point. A property management company is fully familiar with the specifics of compliance and will ensure your rental stays up to date with them.
What Is a Reasonable Management Fee?
The cost of hiring a property manager is often a stumbling block for landlords. Even with all the advantages they provide, are they really worth the money?
First, let’s talk about what a property manager may charge. The standard fee structure includes charging a percentage of your monthly rental income. This will depend on the market rate, but most companies charge between 8% and 20%.
Many firms also charge additional fees for services such as tenant placement. To find the best deal possible, pay close attention to these fees. You should also ask the company what happens if a tenant breaks the lease or fails to pay rent.
Hire Our Property Management Services Today!
As you can see, hiring property management services is almost always worth it. Of course, this also depends on finding the right company for your needs.
At Reedy & Company, we specialize in offering a full suite of property management services to Memphis residents. Since our foundation in 2002, we’ve managed over 3,500 properties, giving us unparalleled local and specialist knowledge!
Ready to get started? Contact us here to schedule a consultation or learn more about our property management services!
Frequently Asked Questions
Should You Hire a Property Manager in Memphis?
Yes, most Memphis landlords would benefit from hiring a property manager. The combination of time savings, improved occupancy, and guaranteed compliance tends to produce positive results, even after management fees.
Hiring a property manager is particularly useful if you don’t live near your rental. Managing a property involves many issues that can be hard to handle from afar.
What if Your Rental Is Part of an Affordable Housing Program?
Landlords participating in an affordable housing program often need more help than other landlords. These programs revolve around receiving financial assistance in return for renting your property to tenants below a certain income level.
The landlord cost benefits of these programs include following a complicated set of rules and regulations. A property manager can help you make sense of it all.
How to Choose the Right Management Company?
Choosing the right property manager is all about research. Ask your friends and family for recommendations, then continue your search online. Once you come up with a short list, interview them all to ensure you’re on the same page.
The two key factors to consider are local market knowledge and transparent fee structures. It also helps if the manager is easy to communicate with.
What Should You Ask a Potential Property Manager?
Before hiring a property manager, you’ll want to ensure they’re licensed. You’ll also want to know more about their experience and qualifications. Don’t forget to ask them how many rental properties they manage right now.
Finally, make sure you’re familiar with their fee structure. See what’s included in their management package and if they charge extra fees for certain tasks.
