A property manager can be a key member of your real estate investing dream team, especially if you plan on scaling your portfolio or don’t want to be involved in the day-to-day operations of managing tenants and property maintenance.
Property managers do more than just collect rent—they provide key services before, during, and after your property purchase to help ensure your investment runs smoothly.
What Do They Do?
Property managers take over the management of your property once it’s rented out, handling everything from tenant relations to maintenance issues. They are also a first buffer to protect from risk when dealing with tenants and fair housing.
But their value goes beyond property management—they can also provide insights and assistance before you purchase your first investment property.
Here’s what a property manager typically handles:
- Rent Comparables (Rent Comps) – Before you buy a property, a property manager can give you rent comps—data about what similar properties in the area are renting for. This can help you set realistic expectations for rental income when analyzing deals.
- Performance Feedback – Based on their experience managing similar properties, a property manager can provide feedback on how the property might perform as a rental. They know the local market and can help you assess whether a property will generate the returns with the expectations you’re aiming for.
- Assisting with Tenant-Occupied Properties – If you’re buying a property that already has tenants, a property manager can help ensure a smooth transition. They can review leases, evaluate tenant histories, and make sure there’s no disruption to cash flow during the handover.
- Rent Ready Standards – Property managers can help you determine what repairs to do and which are not required to get the property ready to rent.
- Referrals for Repairs and Services – During the due diligence period, if repairs are needed, property managers can recommend reliable tradespeople they’ve worked with in the past. They often have an established network of contractors, electricians, plumbers, and more, which can save you time and effort.
- Prepare Property Marketing to Rent – If you’re not handling it yourself, your property manager will hire photographers to take professional photos of your property, create listings, and even run marketing campaigns to attract tenants.
- Managing Properties – Once you own the property, property managers take care of tenant screening, rent collection, maintenance, and repairs. They also handle lease agreements, property listings, and resolving tenant disputes. Essentially, they take the burden of day-to-day property management off your plate.
When Do You Involve Them?
If you’re going to be hiring a property manager, you should involve them before you finalize the purchase of your first investment property. Early involvement allows them to provide rent comps, help with performance feedback, and even assist in the due diligence phase by recommending tradespeople for repairs.
If you’re managing the property yourself, you’re taking on that role.
Why Are They Important?
Property managers free up your time by handling all the tasks related to managing tenants and maintaining the property. They provide professional expertise, making sure the property is well-managed and cash flow is optimized.
Here’s why property managers are a key part of your dream team:
- Maximizing Rental Income – They ensure that your property is rented at a competitive rate and manage tenant turnover efficiently.
- Reducing Vacancy – By marketing the property effectively and handling tenant relations, they reduce vacancy periods and keep rental income consistent and high.
- Handling Repairs and Maintenance – With their network of tradespeople, they ensure that repairs are done quickly and at a reasonable cost, keeping your property in good condition.
- Referral Network – Property managers, like real estate agents, are invaluable sources for referrals to other crucial dream team members. Their hands-on experience managing properties gives them unique insight into reliable contractors, skilled handymen, and efficient cleaners who consistently deliver quality work at fair prices. This extensive network can be a game-changer as you build your real estate investing dream team.