Technology is making property managers more valuable to rental property investors than ever before. So for those that have struggled with justifying the investment in the past, what advantages do today’s tech savvy property managers offer that are leveling the playing field for those building a passive income portfolio?
It’s always wise for real estate investors to watch pennies and demand the most out of every dollar. However, many have seriously underestimated the value of a quality, third party property management company. It can, for all intents and purposes, be hard to justify another expenditure. It is easy to overlook how much value a property manager can add. Whether it is marketing or liability protection, a good property manager can be a great investment. Technology, however, has recently enabled management companies to offer more value than ever before.
Thanks to new property management software, mobile apps, cloud storage, analytics, mobile devices, and better reporting and tracking features, managers can truly help achieve greater spreads and profits from income property investments. So what specific factors make it worth taking a look at professional management for rental property investors that may have passed on it before?
New technology and devices are enabling property managers to operate more efficiently and deliver more services to their clients. Some new benefits may include: taking advantage of tax breaks and deductions, being able to defend against tenant claims, and saving enormous amounts of time. Of course, these are just a few of the advantages property management companies can offer.
Mobile devices, from smartphones to tablets, can help squash any attempts at malicious and frivolous cases brought against a property owner. The most tech savvy and equipped managers can now better document property condition and keep those records organized, safe and accessible in the cloud. These things can certainly go a long way in protecting staff and eliminating risk.
Online payments may seem like a small factor, and even a luxury to some, but they can make a world of difference in rental property profitability. Accepting online payments eliminates risk of loss in rent collection, boosts performance and consistency of passive income, and keeps records organized.
One of the major changes in real estate investing and property management in the last couple of years is the amount of “big data” that is available. So far, much of this data hasn’t been useable, or has even been counterproductive. Improvements in technology have been empowering managers and investors to better filter this data and interpret it effectively. This means better decision making. Equally as important, however, is the ability to create more time to focus on the bigger picture. Use data to your advantage. Managing by metrics alone can be dangerous, especially when companies focus on the wrong metrics.
Tenant screening is another area in which technology can be very beneficial. By itself, more data may not mean better returns. It still takes a savvy and experienced manager to decipher and translate the data provided by a potential tenant. However, new technology in this area can enable those that care to spend more time to think about increasing profitability and long term gains. For example; instead of setting hard, umbrella rules for tenant screening and approvals, the best managers can hone in on maximizing individual property performance by better understanding the local market, and giving residents more of what they want.
A practical use of technology during the tenant screening process can lead to a better user experience. Understanding the customer will help you in marketing, websites, processes, follow up, and actions designed to increase customer satisfaction, loyalty and performance. Moreover, the better reputation you have, the better your business will do. Take care of your tenants and they will take care of you.
These are just a few of the perks and benefits you may come across if you decide to enlist the services of a quality property management company. Obviously, investors could put a lot of these tools together for themselves. However, self management take a lot of time and hard work. Think of how much you could get done if someone else was managing your properties. With the free time, you could focus more on expanding your portfolio. The best managers are now more valuable than ever. So is it time to make the switch?