Successful landlords can do very well in the DC rental market. But the key to building wealth through real estate rentals can be tricky. You want to spend as little as possible in order to see a healthy return, but you need to maintain your property in order to keep tenants happy.
That’s where good property management comes in. While investment property owners think professional property managers are a waste of money, the good ones save you more money than the cost of hiring them.
Check out the following ways property managers save owners money on their investment property.
Property Managers Leverage Their Network
Unless you’ve been managing investment properties for a considerable number of years, you won’t have the contacts necessary to manage issues.
Property managers have relationships with professionals and will know just the right person for the job. They know who does quality work at a reasonable price. Because they control many more properties than the average property owner, property managers also have better bargaining power.
Property Managers Know Local Regulations
Because of their experience with local tax authorities, a good property manager will notify you of ways to reduce your property taxes and help you negotiate better rates. taxes are not always a fixed expense, and you may be eligible for discounts based on the type of tenant you rent to and other factors.
When it comes to building maintenance, property managers know building codes. This ensures that repairs are done right the first time, and that contractors do not upsell owners on upgraded material or unnecessary repairs.
Property Managers Keep Vacancies to a Minimum
In order to maintain consistent cash flow, your properties must stay occupied. This is the main role of a property manager. Not only will they know how to get great tenants in your property, they also handle tenant issues and rent collection to ensure that tenants stay as long as possible.
Investment property owners many times are so focused on getting a tenant in the property that they fail to practice due diligence during the screening process. This hurts owners in the long run, because they are constantly having to deal with high turnover by not choosing the right tenants to begin with.
Savvy landlords protect their investment by hiring a property manager. The right manager will save you big money on your taxes and have greater negotiating power due to their larger portfolios. With the high cost of doing business in the DC area, you need an ally to help you navigate the complex real estate landscape. With the right property management team by your side, you’ll realize greater profits and less headaches.