As an investor, your goal is to maximize your profits. While you may think you can save money on rental management by doing the work yourself, the truth is it can cost you money, cause headaches, and eat up your precious personal time. Hiring a property manager can actually increase your profits and assure great cash flow.
You can convince yourself that real estate management won’t take a lot of time, but in fact, it will. It takes time to track down tenant rents, keep careful financial records, hire maintenance contractors, check their work, or even doing the maintenance yourself.
Showing the property, finding the best tenant, and getting a background and credit check can take a lot of time. Placing the wrong tenant can be an even bigger time and financial drain as you track rent and deal with evictions.
Late-night phone calls about the plumbing or lack of heat can be very disruptive to your family. Phone calls about some maintenance issues or late rent payments during your workday can be a problem to your boss. This is time you aren’t spending with your family, on your personal pursuits, or your job.
How does a property manager save you money and increase your cash flow?
Having a property that is well maintained decreases the amount of maintenance that could be necessary during the year. Preventative maintenance is less expensive than delayed maintenance.
Getting a small leak fixed quickly can prevent a large, out of control leak. Besides fixing the cause of the leak you would have to repair/replace the insulation and drywall then repaint. This is a much greater expense than a simple pipe repair. A property manager would be able to jump on that project immediately; call a reliable vendor, check on the repair and the unit is back in business while you are able to stay at the office.
Property managers have the experience and tools to find the best possible tenant with a good credit score, adequate income, and no previous evictions. Owners tend to panic and accept the first tenant that comes along. This can be a very costly mistake. Waiting for the right tenant can prevent the major costs associated with an eviction plus the lost rent before and during the process.
Property managers know the state and community renter laws. Knowing the laws can help you avoid major legal issues about tenant screening, discrimination, evictions, inspections, and other serious situations.
Unit turns between tenants take time and expertise. You need to have a ready list for every type of repair situation. Having multiple vendors that can provide multiple bids and the ability to get to the job site quickly saves money and time.
Late repairs and cleaning can leave tenants waiting for move-in. Village and HUD permits can be delayed with multiple inspections required. Being able to get the property passed on the first inspection helps to speed up the move-in and getting the rent collection started faster. An owner doing his own repairs has been known to delay move-in and inspections by weeks, causing a loss of rent. That is not acceptable for great cash flow and not the time to be economical. Delays cost money.
Property management in Chicago can get complicated if you don’t follow the local and state laws regarding tenant background checks, discrimination, and Fair Housing Laws. You need to know the laws related to evictions and have a great eviction attorney on call when you need one. Currently, the frequently changing state laws related to Covid-19 evictions can be confusing as well as the rules about showing properties and doing maintenance during the shut-down. A landlord can get into some major legal troubles if he acts outside the law when working with tenants.
Work with the Best to Achieve your Goals
Hiring a Chicago property management company can cost as little as $100 a month, sometimes less, for each unit. That is a small price to pay for less stress and getting your time back.
When you contact us at MF Cashflow Property Management Team you can find out what it really means to have a rental property that cash flows. We have been named in the top 10 best property management companies in the Chicago suburbs.
We know apartment management. We know the Chicago and Chicago suburban markets because of the many years we have worked in those areas. We know the properties in the neighborhoods, the tenants, and the various city ordinances. We know how to price the rentals for maximum income, make required repairs, and keep the tenants in place longer.
Your investment property is our focus. Using the best real estate management company is a successful investment strategy for your cash flow.