Owning rental property is a smart investment. The next best investment is using a property management company to relieve your stress by handling all aspects of your business and having a legal team on standby if tenants become problematic.
As a rental property owner, you want to maximize Net Operating Income (NOI), while maintaining and ideally, increasing the value of your real estate investments. Given such a herculean goal, it may make sense to hire a property management company to handle the numerous, tedious tasks to achieve success in your real estate business.
Bay Property Group will do our due diligence in selecting the right tenants and managing the relationships, but fortune tellers we are not. We can do the next best thing by saving you legal expenses when you experience unforeseen glitches that require the services of an attorney to address any stressors that may occur in a landlord-tenant relationship.
Will you make more money with a property manager? Some food for thought.
Many multi-unit property owners are unenthusiastic about the prospect of hiring a property management company because of the costs associated with outsourcing such a vast scope of work. This includes the upkeep of the property, screening tenants and welcoming them to their new surroundings, providing marketing and bookkeeping services, perhaps fixing structural defects or overseeing renovation projects, responding to tenant complaints, among the commission of other responsibilities that can quickly pile up and overwhelm a landlord.
Inexorably, time is money.
Bay Property Group can you time and energy, reduce your frustration and give you peace of mind knowing your real estate investments are being handled by a team of property management professionals.
This conservation of your resources is all the more welcome if you are a landlord who has the thankless task of managing multiple properties, especially when you have to hold down a full-time job.
Novice owners often encounter minefields and make costly mistakes that an experienced property management company will avoid. Also, if you are located far away from the investment property and do not want to travel on your own dime to maintain it, there may be heightened motivation to hire a property manager to keep it in shape.
There are many helpful tools on the Internet to help manage your property remotely, but clearly, it is no substitute for firsthand observations and hands-on management that can only happen by being on the front lines.
Having a knowledgeable property manager on the ground is especially helpful when something goes awry, for example, a plumbing breakdown. Unless someone close by can respond, it will be an exercise in frustration trying to get it fixed through multiple, annoying phone calls and arrangements.
Thinking long term
Tragically, many investment properties suffer from deferred maintenance and fall into atrophy, but the foremost goal of a property manager is to take good care of your investment to avoid costly repairs and to retain responsible, happy tenants.
If there comes a time when you want to bow out, Bay Property Group is also a full-service real estate brokerage that can liquidate your rental property for the most money the market can bear, in the shortest period of time and with the least complications.
Finding good tenants is critical to your rental business, and the hallmark of a good property manager. Tenants who do not pay rent or who are chronically late clearly have a negative impact on your bottom line. By renting to studious tenants, you will make more money because the undesirable tenants with a bad rental history and other red flags are weeded out.
As a full-service property management company, we do this through a combination of technology and old-fashioned, personal sleuthing.
When rental relationships fail, bounce back quickly
Although no stone is left unturned when screening tenants, sometimes life happens and for whatever unanticipated reason, even a model tenant can sometimes take a turn. You can count on our team to proactively address the situation and have a heart-to-heart conversation with residents who are not fulfilling their obligations.
We love all of our tenants and so as to not show preferential treatment, in the interests of fairness, our blanket policy is to serve a 3-day notice when rent is not paid and if the tenant remains delinquent after the notice is properly served, it regretfully is referred to our Broker of Record, Daniel Bornstein, who is also an attorney specializing in managing difficult relationships. Daniel works strenuously to mend relationships, yet we lament that in some circumstances, tenants may have to be transitioned out of the unit.
When repairs or renovations are necessary, get it right the first time.
If you were to do a google search for home improvement contractors in the Bay Area, you will be deluged with hundreds of results. Making the wrong selection of who you call upon can be disastrous.
Inexperience frequently leads to delays, expensive results and poor workmanship and even worse, invites hefty fines or lawsuits for multi-unit property owners. As a property management company with tentacles in hundreds of properties, we have a cadre of carefully vetted and battle-tested contractors on standby who will take the guesswork out of the equation.
All of the contractors we utilize are licensed and to insulate our clients from liability, this is a rule we will not budge on – you can save coins by a handyman who is a cousin or a friend of a friend, but we always advise our clients not to be a penny wise and a pound foolish.
Bay Property Group always pulls the requisite permits for a job and while we sometimes get surprised or get bogged down in red tape, we have a pretty good handle on the process and can expedite the project.
Remove yourself from uncomfortable conversations and the emotional fray
From our hard-won experience, rental property owners oftentimes face a conundrum or get in financial trouble when the landlord is unable to keep a professional distance from their tenants, and we don’t say that in a callous way. We are all human, but it’s important to compartmentalize your personal relationship and empathy with the tenant and the fact that you are operating a rental business.
A property management company can serve as a buffer between the landlord and the tenant, prioritizing the financial interests of the owner without the risk of being overly lenient on behavior that upsets the landlord. It is easier for a property manager to keep the relationship on a professional level, without hard feelings, by setting mutual expectations in the rental relationship and enforcing these covenants without the owner having awkward conversations.
Although by and large, our clients are stewards of their community by providing safe, clean and affordable housing and treat renters with respect, sometimes frank communication and serving necessary documentation is uncomfortable. When a landlord is reticent to address issues, it can lead to expense and a loss of income.
At Bay Property Group, we pride ourselves on taking good care of tenants, but we also can have difficult conversations when friction arises so that rental income is not interrupted or other expenses incurred.