Multifamily Property Management Myths
What happens when you buy a multifamily property and need to run it? As a landlord, does your job end with finding tenants? Who takes care of the property i.e. maintains it on a day-to-day basis, and handles the tons of paperwork?
This responsibility is undertaken by the landlord, or they hire a property management firm. Hiring a professional property management company can be a lifesaver if you hire the right one.
Read on to learn more about multi-family property management and the property management myths and facts involved.
What is Multifamily Property Management?
Multifamily property management is a broad term that involves managing residential apartment communities with multiple units at one location. It is often assumed that multifamily property management is only for large-scale, multi-unit properties but it also applies to smaller multi-unit properties just as the systems are tweaked, and the order of priorities can change to fit the property size.
Some of the things a property management firm handle is:
1. Finding tenants: The property management firm is responsible for finding suitable tenants. This may require them to advertise the property offline or online on various platforms.
2. Screening tenants: This process involves running credit and background checks for the prospective tenant to verify that selected tenants will pay rent regularly and on time as well as not being a disruptive element.
3. Leases: The property manager drafts and executes leases with the tenant on behalf of the landlord.
4. Handling repairs and maintenance: The property managers oversee property maintenance.
5. Financial Reporting: The property management firm records all financial transactions and reports such activity to ownership generally on a monthly basis.
Debunking Property Management Myths
Giving someone else the responsibility of looking after your property can sometimes be overwhelming, but it can be well worth it. There are so many misconceptions about property management that are only myths. Here we will debunk myths with facts. Read on!
Myth #1:
Managing a multifamily residential property is easy; anyone can do it!
There is a widespread misconception that property management is an easy task. How hard could it be to keep an eye on a few apartments? In reality, managing a multi-family property is a full-time job.
Sure, like anything, some aspects of property management are easy but do not kid yourself, the workload is immense. It involves a lot of paperwork, keeping track of leases, dealing with maintenance issues, managing tenant relations, etc.
In addition, property managers must be available 24/7 in case of emergencies. It is a daily struggle. Residents can be very demanding and less understanding, making the process even more tiresome.
Myth #2:
Anyone can become a property manager
In all but 3 states you need a valid license to manage a multi-family property. Property managers obtain a license by taking state-approved courses and passing an exam.
Without a license, you cannot legally manage a property unless you own it. A licensee must also meet continuing education requirements to keep their license active. So, anybody cannot just do it.
Myth #3:
You can save a lot of money by managing your own property
You might feel you are saving a lot of money by self-managing your property, but nothing is without a cost. What is your time worth to you? Where could you use the time you are spending managing your property?
If you can hire a qualified professional property management company like Summerfield Property Management (SPM), it could benefit your bottom line and quality of life.
Myth #4:
You can choose any property management company
Like any other profession, there are many property managers and management firms. Some property management is better than others when it comes to managing multi-family properties, while others are better equipped to handle commercial properties.
When choosing a property management company, it is important to do your research. Read online reviews and ask for referrals. Ensure that you choose a reputable company with a good track record.
Myth #5:
A property management company’s only work is filling vacancies.
Filling rental vacancies is only one part of the work your property management firm will handle. They are responsible for so much more, from marketing the property, screening tenants, collecting rent on time, handling evictions, tenant relations, dealing with maintenance issues, and on and on and on. It is a time-consuming job that requires experienced professionals committed to doing the work.
Property Management Myths: Conclusion
We hope this has helped debunk property management myths, bringing you a little more clarity, and education. If you have or are considering investing in multifamily real estate, it is always best to hire a qualified professional property management company.
With the help of a property management company, you can rest assured that your property will be in good hands.
Summerfield is one of the leading property management companies with years of experience in handling multi-residential properties.
We currently handle properties in six states, with three more coming soon. If you have a property that is 75+ units or larger in one of our operating states, please connect with one of our experts today.
Property Management Myths: FAQs
Q: What is the most challenging part of property management?
A: Finding the right tenant for a property’s asset class. Keeping a tenant long-term at market rent is another big challenge of being a property manager.
Q: What makes a good property manager?
A: A property manager must be able to listen and communicate well with landlords and tenants. They must be able to handle difficult circumstances diplomatically and tactfully and be able to communicate effectively with people of all backgrounds. In the face of a dispute, the candidate should demonstrate their capacity to stay calm and professional.
Q: What value does a property manager bring?
A: Property managers are adept in evaluating properties and reviewing comparable rental homes to calculate a rent that is competitive with the market. Additionally, they are aware of what local renters desire and, more crucially, what they are willing to pay more for.
