Many rental property owners assume that they are getting top dollar from their rental units. However, chances are that their investment property could be bringing in even more money if they were working with a professional property management company. Property managers are skilled at identifying the best ways to get the highest revenue even with units that are typically more difficult to lease.
A good property management company will be knowledgeable about the rental units they manage and will understand the rental property market in each unit’s real estate area. They will also know the financial goals of the investment property owners that they work for.
When a property owner works with a professional property manager as a way to maximize their revenue, four things can happen in the investment property owner’s favor:
Decisions are based on accurate data, not just competitor behavior.
“One of the most common mistakes is feeling the need to follow the competitor,” explains Tracy Hollins, Senior Technical Account Manager, CSD at Yardi. “Just because they dropped their rates does not always mean that you should. They could have other issues causing lower occupancy where your property is performing just fine.”
Property managers give owners the information they need to get top dollar for their units. Decisions can be based on information rather than guesswork.
Decisions are based on current activity and emerging trends and not just on what happened last year.
“Another mistake is making assumptions based on what happened last year,” says Hollins. “Things are always changing and while historical information is important, you must not neglect what is happening now.”
Experienced property managers such as Martin Feinberg know their markets. They will understand what happened last year but will also know that what happened last year is no guarantee of what the market is currently doing. It is their job to understand current trends.
Decisions are based on a better understanding of how occupancy affects revenues.
Hollins adds, “One of the other mistakes is thinking that more occupancy is my main key to increased revenue. You can actually have a much higher revenue with lower-than-usual occupancy and more qualified tenants.”
Property managers will help owners be proactive in making effective adjustments to marketing, pricing, and other factors.
Owners have more ways to save time and money.
In addition to helping property owners make wising pricing decisions, property managers can also help them save money in other ways.
An investment property owner will not need to have extra employees watching over and caring for their rental properties when they have a reliable property manager handling all of that—and more—for them. Property managers are a convenient and knowledgeable resource for rental property owners that can help manage more than just property.
