hese firms offer a vast array of services that include the simplest tasks of projecting the property to attract tenants up to the actual regular maintenance. If the property is yet to be launched, they can evaluate its worth and provide competitive rental options for would be tenants. The hassle of checking out the competition is also taken care of. Services also include analysis of the market. The manager may inspect the building and may require certain minor adjustments for the property to be competitive enough. This thus gives real estate investors the convenience of having a collaborator. After all, in the business world, more heads are better than one.
Some of the benefits of using property management firms are:
1. Strategic Planning – They will collaborate with you to determine how your properties should be positioned or repositioned relative to current market trends and competitive properties. They will advise on issues that may lower operating expenses, increase NOI or add new sources of NOI.
2. Cost Savings – They typically offer leverage and economies of scale that individual principals cannot bring to bear. Management firms use the aggregate size of their portfolios to negotiate prices, to assure high quality, and rapid response time. They simply have greater scale than the typical property owner and can deliver bottom line savings as a result thereof.
3. Domain Expertise – They have the depth and breadth of knowledge, skill sets and competencies to deliver the right turnkey solution as needed. Having someone apply state of the art technology and tools toward improved property performance is a far better solution than a cobbled together in house attempt.
4. Regulatory & Compliance – They are familiar with state and local municipal codes and regulations as well as with federal laws which may impact your property.
5. Responsiveness – Do you really want to deal with the phone call that comes when you’re in a meeting, out with your family, on the golf course, etc.? Professional management firms are on call 24 hours a day – 7 days a week.
6. Vendor Management – Using your management firm as a single point of contact to manage vendors is tantamount to found time. Not having to deal with the brain damage of managing multiple vendor relationships is worth its weight in gold.