What to Look for in PROPERTY MANAGEMENT

A few signs that point to a true professional property management firm.

Just a quick survey of the traffic on U.S. 278 on a summer Saturday is enough to remind anyone of the incredible draw the Lowcountry continues to have. Two and a half million people travel to the Lowcountry each year – some for a golf weekend, others for a week’s retreat and some for months at a time. Whatever the duration of stay, most who visit never want to leave. Travelers are treated to the area’s many spectacular attractions – immaculate beaches, championship golf courses, picturesque flora and fauna and rich cultural history, to name a few.

Yes, tourism is big. And with that comes a booming rental market upon which many want to capitalize. And why not, if you have the means. But perhaps you lack handyman expertise or the patience to get into the popular real estate investing business. How about a more hands-off approach?

Wondering how to make the most of your property with the least effort? Consider a property management company.

The American dream is home ownership, and many homeowners are dreaming even bigger by buying second, third, even fourth properties – with property management companies making those properties work for them.

So, how can you jump into this lucrative business and, first things first, is now the time? 

WHY BUY NOW?

Statistics report that there are more than 115 million housing units in the United States and almost a third of all U.S. housing is rented. So, there’s money to be made. On a national scale, the real estate market has slowed down compared to recent years, but local conditions are steady and healthy.

However, with a slow down elsewhere, many local sellers are adjusting their prices and generally being more reasonable. The area is also full of established local lenders who can offer stability rooted in experience and a vision for the area.

Needless to say, demand for the area is still hot and local experts know property is a wise investment.

A HANDS-OFF APPROACH

For many local property owners, their local residence isn’t their primary one. Many live out of town and others lack the time and/or experience that the daily operations and tasks associated with running a residential rental unit require.

Local property managers can keep a vigilant eye on property for their employers. This includes making sure tenants take care of the property, correcting problems and maintenance issues quickly and efficiently and working with local contractors to save owners money and time.

Not convinced of the benefits of property management companies yet? There’s plenty more that today’s sophisticated property management companies can do.

WHAT A PROPERTY MANAGEMENT COMPANY CAN DO FOR YOU

Ask just about any real estate professional and they will tell you: ‘Internet is king.’ The use of Web sites and search engines as a marketing tool has revolutionized the industry in the last 15-plus years, and property management companies have helped lead the way.

Since the first step to providing owners with a return on their investments is securing renters, property management companies have learned the tools of the trade for renter courtship. This begins with traditional marketing – brochures, direct mail and ads – as well as by featuring the properties on sophisticated Web sites. These sites are not only user-friendly, but also offer convenient tools such as automatic updates, multi-media virtual tours of rental properties and access to local information – such as popular attractions, dining and entertainment and weather − via Web links.

In addition to a frequently asked questions section, many sites will also offer internet surfers a place to submit questions of their own – with same-day-or-less responses emailed back – and a forum for prior customers to post testimonials. And, although many property management companies work locally, they are likely to share resources with a global network of management companies in order to attract renters from anywhere the Web will reach. With international marketing and Internet exposure, potential visitors are pinpointed from thousands of cities across the globe.

A quality property management company will not only help property owners fill vacancies, but they can also help find good tenants and weed out the less desirable ones as well. This is because many good tenants prefer to rent through property management companies because of the efficiency, professionalism and streamlined process of property viewing, lease agreements, maintenance and rent payments that such companies can offer. Furthermore, it’s likely that less reputable tenants may opt for rent-by-owner properties in hopes that their financial backgrounds and references may be less scrutinized.

Property management companies also take on the task of showing properties to potential renters. Once a renter is found, property management companies will negotiate rental agreements – another hassle from which the owner is spared – and when an agreement is met, the property manager will become responsible for rent collection and tracking tenant deposits. If a renter backs out, the management company already has a non-refundable deposit secured and a team in place to line up another renter. Plus, they’ll even automatically take out any applicable income taxes!

More paperwork? No worries. Some property managers may offer assistance with administrative and financial details, such as ensuring that mortgages, taxes, insurance premiums and maintenance bills are paid on time. Some may also give owners periodic updates regarding the status of their property, occupancy rates and regular itemized accounts of rental incomes and expenses, detailing what the property is bringing in.

Employing a property management company is also a good way to maintain a rental property’s good condition. Management negotiates contracts for services such as janitorial, security, landscaping and trash removal. In addition to general upkeep, property managers are the ones on call when a tenant has a problem, whether a leaky faucet or a leaky roof. Plus, with emergency staff and after-hours assistance, they not only look after the safety of your property but also the guests enjoying it.

WHAT A  PROPERTY MANAGEMENT COMPANY CAN DO FOR RENTERS

Whether renters first discover a property on the Internet or via a more traditional marketing tool, it can be assured that property management companies will provide them with information in a variety of media even before they make the trek to the Lowcountry.

In addition to user-friendly Web sites, guests can use e-concierge programs as a guide to their destination. These programs are provided up to two weeks before their arrival via email and include updates on traffic, changes in roadways and even virtual maps with directions to their individual property.

Upon arrival, guests are greeted by employees who are well-versed in the area. Property management companies typically employ locals who know the area well and/or train their staff in all things Lowcountry in order to guide guests to the finest locations for dining, recreation and entertainment.

Armed with this local expertise, property managers can customize renters’ experiences to suit their needs, offering golf and tennis vacations, honeymoon packages and family reunion specials.

This customization also includes amenities such as views – oceanfront or golf course, room size, bedding, private pools and even pet-friendly accommodations.

Property management companies can also accommodate for parties with diverse interests. Maybe the adults need a day on their own or a night out? Many companies arrange day trips for children – such as mini-golf or a beach excursion – as well as childcare services.

Renting from a property management company is a great way to give both renters and owners peace of mind. Many of these companies employ 24-hour rapid response services and many companies hold top priority with area pool, home repair and maintenance companies, getting technicians to the scene in no time.

With all the benefits a property management company can offer owners and renters, it is arguably an ideal solution for both parties. It’s somewhat of an insurance policy for a great vacation and a well-maintained, lucrative property.

Property managers know their properties from floor to ceiling to ensure that renters sleep comfortably during their visit and property owners rest assured every night.

There are many reasons to choose a property management company to oversee your property.

According to many experts, the following is a list of top ten reasons:

1. Peace of mind: You’ll sleep easier knowing that someone is taking care of any problems that may arise, even when you’re hundreds of miles away.
2. Steady rental income: A property management company has infinite resources to market your property, ensuring regular renters.
3. Worry-free transactions: Your rental management company takes care of confirmations, keys, and visitor passes, making renting your property hassle-free.
4. Financial accountability: You’ll be able to keep track of your property’s profitability thanks to an itemized account of your rental income and expenses.
5. Routine maintenance: Your property management company employs a representative knowledgeable in all aspects of home repair and maintenance, who will handle any necessary quote and repairs.
6. No late-night phone calls: ere’s nothing worse than a late night phone call telling you the toilet is overflowing. Your property management company can eliminate this pesky problem by handling all calls from renters.
7. Fewer tax worries: Eliminate tax headaches by having your property management company take out applicable income taxes.
8. Marketing: You’ll never worry about marketing your property again! Your property management company has the resources and expertise necessary to effectively market your property with no hassle!
9. Cancellation protection: Should a renter back out, you won’t have to worry, your property management company secures a non-refundabledeposit.
10. Control of use: You’ll be able to enjoy the use of your property whenever you choose, but still receive income when it is rented.