By Andy Jergins
From houses to apartments to office buildings, renting property can be extremely profitable. With the market growing by about 2% each year, Jacksonville is a good place for real estate investors. But managing rentals can be rather daunting and time-consuming.
There are pros and cons to hiring an outside company. With a 40-hour workweek, family time, home projects, and all the rest, do you really have the time to take care of your investment?
Pros of Using Professional Property Managers
The list of chores is never-ending when it comes to caring for multi-tenant rental properties. What does this list of benefits include?
Tenant screening
When it comes to choosing tenants, you want to be sure they will pay their rent and take care of your home. The property manager will conduct background and credit checks.
Marketing
You won’t get a good return on your investment if your apartment or house sits empty. Drawing tenants to look at the property is crucial. Property management companies show building units during regular business hours and by appointment.
Rent collection
Collecting rent can be frustrating. It's even more challenging if your tenant is struggling financially. Keeping track of incoming revenue (and missed payments) is important for the flow of income, so you can pay your mortgage.
Building inspections
Management companies make routine inspections for structural damage and maintenance problems. They also need to make sure the tenants keep the place in good condition and abide by the terms of their lease.
Landscaping
Well-kept landscaping is essential to increase the value of your property. Taking care of the trees, fencing, gardens, flower beds, outdoor lighting, and mowing takes time and effort. Your property management company takes care of it for you.
General maintenance
As every homeowner knows, there are always repairs to make, appliances to clean and inspect, windows to seal, and furnaces and air conditioners to upgrade and replace. Large rental buildings have an ongoing list of tasks like fixing toilets, replacing light fixtures, and pest control.
Financial review
A property manager helps you crunch the numbers, set up mortgage payments with your lender, and review financial statements. Staff members are often able to answer money-related questions about your investment.
Knowledge of landlord-tenant laws
If you have no experience (or do not practice landlord-tenant law in Florida), you could face problems with rent-related issues. For example, before a landlord can file for eviction, state law gives the tenant three days to pay overdue rent or move. Property managers are well-versed in both tenant and landlord rights and responsibilities.
Cons of Hiring a Management Company
Cost
Property management comes at a cost, but Green River Property Management creates special packages for clients so you pay for what you need.
Experience
Avoid hiring individual property managers – they typically don’t have a network of trusted contractors.
Availability
Individual property managers may not be available when you need them. Licensed companies offer guarantees for their services.
Less Hands On
Hiring a management company may make you a bit too comfortable, keeping you from visiting your property for a “personal inspection.” It’s nice to leave the stress of management behind, but you’ll feel better about your investment by taking a firsthand look every once in a while.
Invest Some Time
Your investment will give you a higher return if everything is in proper working order. Happy tenants pay their rent on time and take care of their homes or offices -- your property.
The biggest pro when it comes to hiring a property manager in Jacksonville? Your property will retain its value, and you’ll make an even bigger profit when it comes time to sell.
Andy Jergins is a house flipper, landlord, and freelance writer raised in Florida. He loves to visit breweries and wineries around the world, tries to golf, and like most aspiring writers, is working on his novel.
