If you’re a property investor looking for ways to cut costs, increase rental income and optimize your investments, there’s something you can do right now to get closer to all of those goals.
When you own a rental property in Phoenix, Scottsdale, Mesa, Chandler, or anywhere in the East Valley, working with a management company will solve a lot of problems and provide a lot of opportunities.
One of the best reasons to partner with a property manager is to save money. Not only can we manage maintenance needs and tenant relations, but we also know the market really well, which makes it easier to maximize return on investment (ROI) potential.
You’ll get a profitable, well-managed rental home with minimal effort on your part.
Let’s explore how hiring a professional property manager could help save you money.
Market-Driven Rental Values Keep Vacancy Costs Down
One good way to save money is to not lose money. Where do most property owners lose the most of their money? Through vacancies. A vacant rental property is a big problem, and it’s sometimes due to your property being over-priced on the market.
That doesn’t mean you want to price it too low. Earning more rent will always save you money. If your rents aren’t at market level, you’re losing money every month. And, it’s harder to catch up. Every time you renew the lease agreement with the tenants who have grown comfortable paying less than what your property is worth, you’re selling yourself short.
Maybe you’re not raising the rent at all, which is another potential problem.
You never want to price your rental home at below market values, because it leaves money on the table. Attaching the right rental value to your property impacts cash flow, ROI, and how quickly you’re able to find and place a good tenant.
Property managers help with the right rental value. We have data and we have experience. We understand the tenants, we understand the competing properties on the market, and we understand what makes your rental home unique and valuable.
Attracting, Placing, and Retaining High Quality Tenants
Property managers can also help rental property owners save money by attracting and placing great residents for your rental property.
The right tenants will make or break your rental experience. A good resident will contribute to the maintenance at your property, follow the lease terms without difficulty, and always pay rent on time. That’s a money-saving tenant. Unqualified tenants, on the other hand, will end up costing you money. There will be late rent to chase down. Property damage to repair. Lease enforcement that takes time and energy.
As property managers, we have access to a wide range of marketing and advertising resources, which we leverage to attract residents. You won’t have to spend a lot of time and money taking marketing photos, writing up a listing, and sharing that listing across multiple rental websites and marketing channels.
We have the process in place already, and our property management technology allows us to quickly syndicate your listing and showcase it on multiple platforms.
Tenant screening needs to be rigorous, fair, and consistent. Even more importantly, it needs to be legally compliant. If you violate a fair housing law accidentally, you can find yourself facing a fine that starts at $16,000. That’s a pretty expensive mistake to make. Property managers protect you from that risk.
Property managers also save you money by protecting you from those bad tenants who will cost you money. We understand what to look for in terms of:
- Eviction history
- Income and employment
- Criminal history
- Rental history and landlord references
The leasing process does not stop at tenant screening. Your property managers save you money by getting tenants placed faster and rent coming in sooner. Once a high quality tenant is approved, we put together a rental agreement that will minimize rental expenses and maximize rental income.
Retaining tenants is just as important as placing them. Property managers develop positive and professional tenant relationships. We approach this from a place of providing customer service. When your residents have a good rental experience, you avoid turnover costs and vacancy.
Saving Money on Rental Property Maintenance
Property managers will also save you money when it comes to maintenance. We do this in two ways: by negotiating better rates and by avoiding deferred and unreported maintenance.
- Deferred Maintenance is Costly
When your property takes on deferred or unreported maintenance, your repair costs go up dramatically. Trying to put off a minor repair because you don’t want to spend the money is a terrible decision, and we’ll protect you from making such mistakes.
We avoid deferred maintenance and we’re responsive to the needs of your residents and your investment property. Hiring a property manager can be an effective way for rental property owners to save money on maintenance in the long run. The condition of your property is better preserved and it’s worth more. We’ll conduct routine inspections, make sure tenants understand their responsibilities when it comes to reporting repair needs, and implement our plans for routine, emergency, and preventative maintenance. You can expect us to be available to your tenants and your property 24 hours a day.
- Vendor Relationships Lead to Cost Effective Maintenance
There’s not much we can do about costs going up. This is happening to everyone. But, we can minimize those costs and negotiate the best possible rates with our list of preferred vendors. Property managers provide a large volume of work to plumbers, electricians, cleaners, and landscapers. This gives us more purchasing power and negotiating flex.
We have a great team of vendors and contractors who offer us their best rates when we call them for help. An independent landlord won’t get much of a discount when they need plumbing work or landscaping.
Save money on maintenance by working with a management company to handle repairs, renovations, and routine work. Our list of preferred vendors will keep costs manageable, even while the quality of work remains impressive.
East Valley Property Managers Increase What You Earn
Finally, it’s more than saving money…it’s earning more money. Property managers can help rental owners do that, too. Whether it’s retaining tenants at a higher rental value, recommending updates and improvements that increase rental value, or taking advantage of tax deductions, we can help you earn more on your investment property. We can even help you look for additional investment opportunities that will grow your portfolio.
Tracking income and expenses is another service property managers provide to the owners they work with. This is a good way to track what you’re earning and see where you’re saving. We’re able to do this with transparency, accuracy, and extensive detail thanks to our investment in technology and our property management software.
You need a clear accounting of what you’re earning and spending. This will be invaluable at tax time when you’re making deductions and reducing your tax exposure.
A good property manager will also introduce you to tax-friendly options when you’re looking to grow your portfolio or make some changes. A 1031 exchange, for example, can deliver tax benefits and provide an opportunity for you to sell a property that no longer serves you and buy something else.
Accessing resources - financial and otherwise - will help you save money and earn more on your property. Here are some of the ways that you can leverage the experience and resources of a management company to earn more:
- Your accurate rental values bring in steady and consistent rent. It’s important to know what your rental property is worth and to price it accordingly. Otherwise, you can lose money on longer vacancies and rents that are too low. Property managers have better data, an understanding of the local market, and a suggested rental value that’s accurate and profitable.
- Limited vacancy and turnovers. Vacancy is expensive and a lot of landlords have trouble finding tenants quickly. We reduce the number of days your property is unoccupied. Turnovers require a lot of money to be spent on maintenance, cleaning, and marketing. We keep your good tenants in place.
- Relationships. Save money by leveraging the relationships that property managers have. We are always happy to offer referrals to insurance agents, vendors, and other service providers.
- Risk management. Renting out a home comes with a lot of liability. We reduce your risk and protect both you and your investment. We’ll help you avoid evictions, lawsuits, and claims.
With the help of a local property manager in Phoenix, Gilbert, or the surrounding areas, owners like you can ensure that your investment properties are well-maintained and profitable.
Why not maximize rental income while minimizing rental expenses? Property managers are an invaluable resource for rental property owners who want to make sure their rental properties are performing as expected. We would be happy to talk with you more about how we can help you save money on your investment property and earn more income.
Please contact us at TCT Property Management Services. We manage homes in the East Valley, including Mesa, Gilbert, Chandler, Scottsdale, and Phoenix.