Think about your real goal for renting out an invested property – you are looking for a return on that investment in the form of regular monthly checks. In order to make this happen on a rental property you have to go through a few steps. You need to have the unit(s) in the property condition and ready to receive tenants. Then you need to go find those tenants. Once you have found tenants who are interested in signing for a term, you need to make sure those tenants regularly pay you on time. You also need to make sure the building stays in proper condition while the tenants use it. What if a tenant is upset? What if a tenant wants to leave? There are a myriad of questions that can come along.

Let’s take a step back and talk about value. As previously stated, the purpose of an investment property is to generate money – you invest in the property, and then either by reselling the property for a greater value, or renting for a monthly fee, you make a return on that investment. The purpose of investing in property is NOT to acquire a whole bunch of extra responsibilities and legal hassles, thus reducing the value of your time spent and ultimately your ROI.

What you are really looking for in a property manager is someone to maximize the money you have put into the property. Look at it as time spent. Let’s say you invest $1,000 – and your goal is to regain that investment in one month. In order to do this you spend 40 hours per week (for 120 hours in the month) on that investment and you do achieve that $1,000 in the first month. Now let’s consider that after making that $1,000 investment, instead of spending 40 hours per week you pay someone $500 for that month – the total of $1,000 is achieved but you only make $500. However, in the second scenario you spent one hour hiring someone. In the first scenario, you worked for $25/hr – in the second, you earned the $500/hr.

Property managers are professionals who provide a service – their time is crafted specifically to take care of the needs of your property, so that as an investor and owner you can simply collect a check every month and spend your time – which is worth far more than the time it takes to manage a property – attending to other aspects of your business (such as investing in more properties).

So from an investment point of view, paying someone to do all the work clearly provides a higher return for your time. There are other reasons to hire a property manager aside from this.

Legally speaking, it is far easier to deal with fair housing laws when the owner is not involved in any of the interactions with the tenant. Neutral third parties provide a buffer which can prevent potential lawsuits. If the owner is the one choosing tenants to fill vacancies, then it is far too easy for someone to claim favoritism or discrimination – since the Owner’s intentions and goals are slated more towards earning money off the property, whereas a third party does not have any motivation other than to fill vacancies.

There is also future value to consider. When investing a property that you intend on renting for an extended duration, you also have to consider the upkeep and advancement of the property over the years. This means keeping in mind everything from basic maintenance of the building and appliances to improvements to the structure. How often will you renovate? For that matter, how will you keep track of this sort of thing if you are juggling everything else with respect to managing the property? If you give the daily running of the property into the hands of someone else, you are free to step back and make proper plans for increasing the value of the property via renovations or additions.
Hiring a property manager is about security and peace of mind – it’s a way for you to maximize the value of your time while achieving the most return on your investment.

Photo via Creative Commons: Joel Zalud

• Update the Bathroom:  By taking care of just a few bathroom details, you can make some significant improvements to your property. For example, replace the shower curtains and install a water-efficient shower head.
• New Paint:  Applying a fresh coat of paint to the walls, trims, and even the kitchen cabinets can improve the visual appeal of any property.
• Window Coverings:  Change all blinds or curtains before a new tenant moves in.
• Small Details:  Replace all switch plates, cabinet handles, and drawer pulls.

While these may seem like small improvements, they really do go a long way in helping Chandler property management companies make an overall property appear much more inviting.

• Reorganize and Update Your Plan:  It’s important to keep a watchful eye on your marketing plan and constantly review it to see if there is anything that needs improving. This plan is what attracts your future tenants.
• Save Money: Take steps to save money. One way is implementing an electronic method for your property management office. Try going paperless and making use of saving documents electronically. It is important to teach all property managers and office staff how to help save the company money.
• Be Attentive: You should always be aware of what is happening at your properties. Unpredicted expenses can produce difficulties for any AZ property management company; therefore, your property managers need to learn to handle different emergency maintenance circumstances that arise. However, reducing the possibility of maintenance problems can often times be prevented by performing periodic inspections of the property.

• Discount Stores: When upgrading a rental home, you might be amazed at what you find at your local discount store. Some examples of items to look for are:  shower curtain liners, drawer knobs and sink fixtures. These small details help homes look more attractive without placing a huge dent in your wallet.

• Low Cost Window Coverings:  Your first choice is usually traditional curtains when you think of covering windows. Keep in mind these fade quickly and can be very costly to clean. A practically priced substitute is mini-blinds. Not only are they easy to install, but they can easily be replaced when a tenant moves out.

• Bulk Quantities: If you have a local building supply store, they may offer a discount for buying items in large quantities. A perfect example is light fixtures. One way to give a property an improved look is to have all the lighting coordinated.

• Cover all the bases with your lease agreement: The lease agreement is one of the most essential pieces of paperwork a property manager must deal with on a continuous basis. It states the rights and responsibilities for the tenant and property manager, therefore, it is important the agreement covers all the bases. This is what helps to protect the property manager from any difficult situations.

• Property maintenance requirements: Maintenance requests can be tough for Phoenix property managers, especially if they happen in the middle of the night. Although these situations are unavoidable, you can reduce the chances of them by performing regular inspections at your rental properties.

• Communication: This is a big part of any property management. Don’t undervalue the probability that you’ll be involved in face to face, e-mail and telephone conversations with tenants and property owners on a regular basis. It’s important to be a good listener.

• Not being prepared for an emergency can be devastating. You should try to figure out what to do in an unexpected situation before you even start trying to attract tenants.
• Consider equipping the property with devices that will trigger a call for help automatically (such as fire and burglar alarms) in case the tenant is out of town when an emergency happens.
• Make it mandatory for your tenants to purchase renter’s insurance so that their possessions are protected without you or the Phoenix property management firm that you work for being liable for them.

Preparing for an emergency takes time, but the energy you put into it will pay off if you ever find yourself dealing with a surprising situation on your property.