A good property manager maintains the grounds, answers maintenance requests, and promptly collects the rent.

A great property manager does all this while also maximizing profit. 

For many rental estate investors, especially beginners, a property manager is an essential partner when it comes to boosting financial returns from all properties, big or small.

While real estate is traditionally one of the more reliable and lucrative investments one can make, Jose Ernesto Batres Gonzalez says that the property managers are the ones who largely increase the chances of the best possible return on the investment.

Hiring the right property management company isn’t just a safeguard on one investment. Protecting real estate assets often makes purchasing additional real estate investments a reality, going a long way to establish financial security for the future. 

It Starts Early

Working toward a fantastic return on investment (ROI) begins before a property even hits the market. The interior and exterior should be in top shape. Everything should work as expected. All repairs should be completed.

It usually takes less time to secure a lease if a property is “rent ready,” which also results in faster financial returns.

Don’t Neglect Inspections

Inspections on rental properties tend to occur only when someone moves in or moves out. This is a mistake, though.

Investors and property managers should contruct a regular inspection schedule in order to pinpoint any general maintenance and repair needs. Such inspections help uncover potentially pricey repairs before they can get worse.

Communication is Key

Property management companies thrive because many real estate investors cannot be actively involved with their properties at all times. Property managers can spend far more time in-person at properties, taking care of any issues that may arise.

This makes good communication between a property manager and a client investor necessary. Any tenant concerns and improvement needs must be discussed immediately with an investor. In turn, investors should be able to communicate decisions rapidly with a property management company.

The overall value of a property increases tremendously with consistent communication. 

Consider Upgrades

Depending on an area’s real estate market, ROI may be boosted by either adding popular amenities or investing in general upgrades. If a property goes unrented for too long, it may be outdated. Cost-effective upgrades include everything from bathroom and kitchen renovations to new flooring.

Property managers may also suggest attractive amenities that will set a rental apart from others in the same market, including adding a gym, installing a laundry facility, or opening a dog park on-site. 

Stay on Top of Rental Rates

Property management companies can help investors set the all-important rental cost. If the rent is too low, a substantial ROI will be out of reach. If it’s too high, it’s harder to fill vacancies.

If the market supports it, investors and property managers may also agree on rental increases each year. Even a 1% to 3% annual rent increase helps the bottom line.

Get the Right Tenants

It’s often the property manager — or a team hired by the manager — who finds and signs responsible tenants.

Potential tenants should be comprehensively screened and evaluated based on their financial history, credit score, and referrals from previous landlords through an overall background check.