March 7, 2023

Property Management: Another Expense or A Worthwhile Service?

Property Management

If you have intentions of having more than one physical asset in your real estate portfolio, it's pertinent to bookmark this post. As you continue to grow, your asset demands will become more prominent. One of the most efficient ways to scale your real estate business is by investing in a partnership with a property management company.

But, before you haul off and tap the contact button on the first company that pops up in Google search results, let's explore a few things you should know, including traits you should look for and the most efficient way to identify candidates.

What Do Property Management Companies Do?

Consider property management companies as the vehicle that helps investors elevate their real estate investment business from one level to the next. Investing in a property management company should be equivalent to extending your absolute best foot forward to everyone who encounters your property in one way or another. They are most beneficial because the partnership establishes the representation of the experience associated with the investment brand.

Have you ever visited an establishment that provides a 'signature' experience? 

Whether tangible or not, its purpose is to leave a lasting impression meant to be associated with that brand only.

Let's look at ways in which that experience translates to value. 

What Value Does a Property Management Company Add to the Property and Client?

Protecting the integrity of your asset shows up in multiple ways, whether it is enhancing curb appeal to attract high-value clients or managing an all-star maintenance team focused on client satisfaction and resident retention. It's an infinite and intentional loop of care.

Here are a couple of other ways that a PM company provides value:

Reduce the Risk of Rental Loss: Rental loss is caused by the inability to collect rental income. While some situations can be unpredictable and directly affect the ability to collect rent, there are some cases where the defaulted rental collection could have been avoided. PM companies rely on thorough tenant screening to assist in the application determination process. It helps calculate the tenant worthiness of a potential resident's profile, including any previous rental history and outstanding debt. Tenant screening is one of the most critical aspects of property management. Properly screening applications preserve the property's value and help mitigate risk.

Manage marketing exposure and engagement: Property management companies are responsible for connecting your property to potential rental clients. Effective marketing can help secure the property for high-profile clients. They can also assist in maintaining up-to-date property listing and advertising, pushing out reliable information for public viewing.

Provides a Professional and Cohesive Appearance: Delegating the daily operations of managing an asset does wonders for resident communication. It also assists in establishing a professional rapport with residents and provides comfort that there is an available presence to answer any questions or concerns that may arise.

Overall, a property management company is the professional extension of you, the investor. Considering this, aligning with a property management company that reflects your values is pertinent.

What Differentiates A Good PM From A Great PM?

Property management companies are not one size fits all, although many functions are universal. This means tasks such as rent collection, maintenance management, and even monitoring and maintaining the property's compliance schedule should be expected as a minimum from all property management companies. 

However, more than partnering with a company that provides the bare minimum is required. As an investor with explicit success goals, it is imperative to align with industry professionals who share an interest in reaching success and are willing to commit to that level of excellence.

A good property management company will check the boxes enough to say the job has been completed. A great management company checks off the boxes and completes the follow-up, meaning they go beyond what is expected, including keeping up to date with industry training, laws, and regulations to ensure that your asset always operates under the most updated industry standards at all times.

Why Choose NREMG's Welcome/Referral Program for Investors

National Real Estate Management Group strives to be the exception. We aren't ok with being a good property management company, offering the bare minimum regarding operation tasks, and settling into a mundane checklist. We focus on connecting with our clients first, understanding where they are currently, and exploring their aspirations to help identify their goals. Through this level of thorough connection, we can understand how to meet you where you are and provide the needed support to help guide you where you intend to go.

Additionally, we are committed to being with you from the beginning because we are a full-service brokerage. We can help you locate your assets, negotiate terms and help you identify and set goals. In other words, when we partner with investors, our commitment to you extends beyond the closing table.

We are committed to working with our investor partners in excellence. As a token of our commitment, we have created our exemplary welcome program, which includes fast-tracking the fulfillment of our commitment to excellence by waiving the first month's management fee to new partners.

Are you looking to locate your next investment property or learn how NREMG can help you expand your business goals with the full backing and resources of our accomplished property management company? 

Contact us today to schedule a complimentary one-on-one.