A good question to ask is if you need to hire a property manager. We can't answer that question... that truth lies in your talents and abilities.
Below we've outlined some of the services a good property manager can supply. We'd advise you read through the list and determine, with lots of honesty, if you have the skills, personality and time to self manage.
Fundamentally, a property manager handles the day to day duties involved with owning a rental home or property. If you lack the time or expertise needed, an expert property manager can help you.
A property management company can help you:
- Market your rental property to potential tenants. A good property manager knows market conditions, understands how and where to find good renters and how to determine viable rental rates.
- Fill vacancies with the best possible tenants. A good property manager should evaluate your prospective tenants, run financial & criminal background checks, negotiate lease agreements, explain the rules, and collect deposits/upfront rent.
- Maintain and keep your rental property in good condition. A good manager will coordinate any necessary repairs and oversee ongoing services such as landscaping, pool maintenance and such.
- Property managers should provide monthly business reports. They may provide other financial services such as setting up escrow accounts for deposits, bank accounts for income and expenses as well as financial statements required by your CPA.
- Collect rent.
- Execute eviction proceedings if tenants violate the conditions of their lease. Some have specialty lawyers on retainer who can help with this process.
- Comply with federal, state and local laws. See the Arizona Landlord Tenant Act.
- Respond to tenant requests and deal with problem tenants.
You'll want to evaluate your time and expertise to determine if a property management firm is needed. If you have never owned income property, you may want to contract a management firm as you learn and study the skills required for the job.
