Six Situations Where a Property Management Company Can Save You Time and Money

This article by Jason Falcon was originally posted on The National Real Estate Investor and can be viewed at

If you struggle with any of the following situations as a landlord, you could greatly benefit from working with a trusted property manager.

While many individuals are tempted to follow the DIY route by becoming their own landlords, there are several situations where a property management company is better equipped to deliver stronger profit margins.

If you struggle with any of the following situations as a landlord, you could greatly benefit from working with a trusted property manager.

Determining the Optimal Rental Rate

A professional property manager has access to the tools and information you need to set the optimal rental rate for an investment property. To determine this rate, the property manager needs to achieve the ideal balance between maximizing the monthly income levels and maintaining a low vacancy rate.

By conducting intensive research of the local real estate market, including a cross analysis of local rental properties that are already listed on the MLS, a property manager is best equipped to set the optimal rental rates for your investment properties.

Collecting Rent Payments on Time

While collecting monthly rent might seem like an easy task, it is far more time-consuming and challenging than most landlords anticipate. And failing to collect rent on time can lead to insufficient funds in your account, which leads to a whole host of other problems.

Fortunately, professional property management companies have a tried-and-true system for efficiently and effectively collecting monthly rents. From automated payment collection systems to clearly articulated late fees, property management companies will ensure that rent is collected on time each month and that it is deposited safely into your account.

Marketing and Advertising Your Rental Properties

Have you ever tried to sell something on Craigslist? If so, you might have experienced the all too common phenomenon of price slashing. People turn to Craigslist looking for a bargain, meaning they are less likely to pay the full price.

That scenario also happens to DIY landlords. Due to a lack of experience with real estate marketing and price negotiation, landlords are more likely to experience price slashing and take the first offer that walks through the door. Property managers can help you successfully market your rental properties to the right group of tenants. They can also market rental properties on a wide variety of real estate search engines, as well as the local MLS.

Complying With Housing Regulations and Property Laws

Landlords must abide by the countless housing regulations and property laws. A failure to comply with those regulations, including the fair housing regulations, can result in serious lawsuits.

Unless you are well-versed on the local, state and national regulations and housing laws, you should work with a property manager. Not only can they help you avoid costly lawsuits, but they can also ensure that your property is up-to-date with the latest regulations.

Investing in Multiple Locations

As a DIY landlord, you’re limited by the ability to invest in properties located within a tight radius of your home. Unless you want to spend the majority of your day driving around from property to property, you are better off hiring a property manager who specializes in the entire area. An experienced property manager will give you the flexibility to diversify your real estate portfolio without having to invest more of your valuable time.

Maximizing the Profitability of Your Time

The old adage, "time is money," is all too true in the world of real estate investments. A property manager is best equipped to handle the day-to-day aspects of managing your investment property, which means that you are free to spend your time identifying additional investment opportunities. By working with a property manager, you can increase the profitability of your time and enjoy the monetary benefits that ensue.

The bottom line? Property managers are here to help. Whether you’re having a hard time setting the right rental rate, or you’re worried about complying with the local housing regulations and laws, hiring a property manager can save you time, effort, and help you increase your ROI.

Jason Falcon is the owner of LEAP Property Management, a full-service property management company in Denton, TX. LEAP manages over $100 million in real estate.