Hello, property and potential property owners! Welcome to the RPM Distinguished Care blog, where we provide practical advice about property management! If you’re a return visitor, welcome back. We sincerely appreciate your support! RPM Distinguished Care specializes in managing successful rental properties in and around the Charleston area. We’re here to make your lives easier by giving you the resources you need to maximize profitability and have a successful rental property. We provide comprehensive property management services at every conceivable level. From advertising and marketing, to responding to applications, to inspecting and maintaining properties—there’s nothing we do not do. Further, we ensure tenant compliance, handle necessary evictions, and report directly back to you about revenue and profit potentials. We aim to make owning rental property as easy for you as possible, for as little money as possible. Check out the rest of our site to meet our team and discover what makes RPM Distinguished Care the best property management company in Charleston!
Our last article was a comprehensive breakdown of the best places to purchase rental property in the Charleston Metropolitan area. While many imagine Downtown and the splendor of the Peninsula whenever they hear the word “Charleston,” as locals we’re privy to many of the oft-overlooked towns which make Charleston such a desirable place to live. We quoted plenty of facts and figures—including average list prices, increases in sales prices year-over-year, and even investor-friendly neighborhoods—to make searching for your next rental property a snap. Whether you value a top-rated school system or well-built properties or both, our last article has everything you need to narrow down your potential property list. We definitely recommend giving ‘Where to Buy Rental Property in Charleston’ a read!
Today, we’re honing in on what we do best: property management! Managing even a single successful rental property involves a laundry list of skills. Real Property Management has been streamlining its process for over thirty years and now we’d like to share the basics with you! What do you need to manage a rental property? How do you maximize your rental income? What are the pitfalls to watch out for? We’ll answer these questions in-depth. And, for good measure, we’ve included a brief section on the advantages of investing in a property management company. If you’re currently struggling with a rental property of your own or are considering purchasing your first investment property, this article is for you!
Efficient Communication
One of the first essentials of good property management is efficient communication. Efficient communication falls under the umbrella of any well-performing management workflow. For example, within a large corporation, there are several chains of communication which facilitate the spread of necessary information. Using a system, corporations with many employees are able to pass information up and down the chain without bottlenecking or accidentally playing a game of telephone. In the same manner, when managing multiple properties, a good property management company will ensure clear channels of communication between three parties: the owner, the tenant, and the company itself.
Now, what is efficient communication? Well, efficient communication is clear, concise, and honest. While objective interpretations of what is indeed concise or honest may vary, efficient communication habits do not. When communicating effectively, senders will make their intentions plain, use appropriate channels, and verify their message was received by the intended recipient. Likewise, receivers will read communications fully and respond in a timely manner. Any good property management company will practice both aspects of efficient communication.
You do not want to be too concise, to the point that your message becomes unclear due to the brevity of the message. For example, if an owner wanted to communicate to a tenant the need to comply with HOA rules, they would not send a single line from the HOA handbook in an email with no context. Instead, they would make clear the intention of the email (i.e. to remind the tenant of the neighborhood’s regulations) and offer an example of an appropriate response (i.e. to send a reply if they are still unsure of their HOA obligations).
Being Aware of Pain Points
Another aspect of good property management is being aware of potential pain points. Pain points are common problems owners and tenants tend to run into during the course of their relationship. For owners, these pain points might include repairs, hiring contractors, tenant retention, and collecting rent. For tenants, these pain points might include the leasing process, outdated payment methods, repairs, and lack of communication. Oftentimes, owners and tenants will share many of the same pain points. It is the job of any good property management company to mitigate these pain points by planning ahead and adequately addressing them when they arise.
One way you might mitigate the tenant pain point of an arduous leasing process is to streamline the process. From the tenant’s perspective, write down all of the steps you would have to take to procure the apartment or home. Then, once you have a number, cut the steps in half. By doing so, you partially alleviate the burden on a potential tenant. One way you might mitigate the pain point of hiring contractors is by developing a list of reputable contractors who you’ve worked with consistently. This ensures that when there is work to be done, the work will be done satisfactorily and to completion. There are plenty of ways to lessen the pain of pain points and experienced property management firms will be better equipped to anticipate these pain points before they arise.
Consolidating Data
As the primary goal of any investment property is return-on-investment, financial data is necessary for determining the profitability of a property and it’s long-term viability as an investment. Financial data includes gross earnings, net earnings, expenses, fees, and more. Any good property management company will be upfront about their fees and offer transparency concerning their rates. Furthermore, it’s not enough for a property management company to simply transfer the rent into your account, minus their cut. When a property management company takes the time to collect and consolidate data concerning your property, they are able to provide data-driven solutions to your problems. Where are you spending too much money on your property? If you invest a certain amount of money into marketing your property, how much return can you expect? How have rental prices in the area where your property is located changed in the past year? Are you able to charge more for rent? These questions may not have concrete answers, but data can give you a pretty good idea.
Why Invest in a Property Management Company?
Since we’ve been in the property management business for over three decades now, we may be a bit biased. Nevertheless, the benefits of smart property management are clear. According to a report from Buildium, 88% of tenants stated their lease renewal strongly depended upon the quality of their property management. Tenants surveyed in the 2018 CBRE Global Tenant Survey listed “ease of contact” as the primary factor which contributed to a successful property management relationship. This was followed closely by “speed of reaction,” then “time/resources available,” then “follow up and after care,” and finally “good technical capability.”
While individual property owners have all of the skills listed here today, they have a limited number of hours in the day to dedicate to any one property, let alone multiple properties. Since tenants value ease, speed, and resources, it makes sense that a property management company is more equipped to provide these. By practicing efficient communication, being aware of pain points, and consolidating data, professional property management services can meet the needs of both tenants and owners. If your goal is to maintain and increase the value of your rental investment, then property management is the way to go!
We hope the tips offered here today gave you a deeper understanding of the skill involved in managing the operations of a rental property. Experience is the best teacher, of course. When managing your first property, you might encounter plenty of pain points. If you want to be supported in your investment and bolstered by the expertise of an experienced property management company, Real Property Management is here! With Real Property Management Distinguished Care, we treat your property as if it were our own. No hidden fees, only safeguards and guarantees. Up-front packages you can review and prepare for right here on our website! If you’d like more information on how we address and plan for maintenance, don’t hesitate to reach out. We are more than happy to assist you in setting up the perfect property management service for your properties. Protecting your investments is our priority!
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