As many of you may know, significant changes are coming to real estate sales commissions and representations as part of a National Association of Realtors (NAR) settlement. It will change how commissions are handled and some other disclosure/representation requirements. At Candlewood, we are fortunate to work with top real estate performers who will adapt and thrive despite these changes. However, we anticipate that less successful agents may turn to property management for additional income, which is concerning for investment property owners.
Whether you choose Candlewood Property Management or another professional company, it's clear that a dedicated property management company will always provide superior service compared to those treating it as a "side gig." As a licensed Real Estate Broker with 25 years of exclusive property management experience, I can assure you that real estate agent training in property management is minimal and inadequate for navigating this industry's legal complexities.
When selecting a property management company to trust with your investment, there are critical differences between professionals and part-timers. Let's explore these areas to ensure your property is best protected.
1. Expertise and Experience
Professional property management companies bring years of experience and specialized knowledge to the table. Unlike part-time real estate agents who might be dabbling in property management for supplemental income, professional managers are fully committed to understanding the complexities of rental property management. This includes everything from tenant screening and lease agreements to maintenance and legal compliance.
2. Reliable Tenant Screening
A rigorous tenant screening process is critical to ensure you find reliable, long-term tenants who will take care of your property and pay rent on time. Professional property managers have refined screening processes and access to advanced tools and resources to vet potential tenants thoroughly. In contrast, a less experienced agent might lack the resources or knowledge to perform such detailed screenings, potentially leading to higher turnover and problem tenants.
3. Efficient Maintenance and Repairs
Maintenance and timely repairs are essential to maintaining the value of your property and keeping tenants satisfied. Professional property managers have established relationships with reliable contractors and service providers, ensuring that maintenance issues are addressed quickly and cost-effectively. A part-time agent may not have these connections, leading to delays and potentially higher repair costs. At Candlewood we are able to leverage our size to get priority service from vendors, which is paramount when it comes to emergency issues that undoubtedly arise.
4. Legal and Regulatory Compliance
Property management involves navigating a complex landscape of local, state, and federal regulations. Professional property managers stay updated on all relevant laws and regulations, ensuring that your property is always in compliance. This minimizes the risk of legal issues that can arise from improperly handled tenant relations or property conditions. An inexperienced agent may not be fully aware of these legal intricacies, increasing your exposure to potential liabilities. By contract, Candlewood routinely meets in Madison for the sole purpose of education, discussing rental issues with lawmakers, and even working to advance legislation that benefits the industry.
5. Marketing and Occupancy
Keeping your property occupied with quality tenants is crucial for maintaining steady rental income. Professional property management companies have effective marketing strategies to attract potential tenants and reduce vacancy periods. They understand the local rental market and can price your property competitively. A discount agent may not have the same marketing prowess or market insight, leading to longer vacancies and lost income. They simply lack the resources and reach to find, attract and retain the best tenants.
6. Financial Management and Reporting
Accurate financial management is vital for tracking income, expenses, and overall profitability of your rental property. Professional property managers provide detailed financial reporting, helping you stay informed about your property's performance. They handle rent collection, bill payments, and can offer valuable advice on budgeting and financial planning. A part-time agent may not provide the same level of financial oversight, leading to potential mismanagement of funds.
7. Proactive Problem Solving
Property management is not without its challenges, from tenant disputes to unexpected maintenance issues. Experienced property managers are skilled in proactive problem-solving, handling issues before they escalate. They are trained to manage difficult situations calmly and professionally, ensuring that your property remains a stress-free investment. Inexperienced agents may lack the problem-solving skills and experience needed to effectively manage such challenges. When these challenges are not properly handled, they often become costly legal battles.
Conclusion
In light of the current NAR ruling that may impact commission structures for low-producing agents, the case for hiring a professional property management company becomes even stronger. Your rental property is a valuable asset that deserves the expertise and dedication of a seasoned property management team. By choosing a professional property manager, you can ensure your investment is protected, well-maintained, and consistently generating income. Don't settle for less when it comes to managing your property – trust the professionals to deliver the results you expect and deserve.
For more information on how our professional property management services can benefit your investment, please contact us today.
