How Can a Property Manager Save You Money?

How Can a Property Manager Save You Money? - Article Banner

For landlords, saving money while leasing and managing a rental property is just as important as making sure it’s well-maintained and that tenants are happy. If you think you’re saving money by managing the property on your own, you might want to re-think that strategy.

Property managers come with the expertise necessary to help maintain your rental while minimizing costs wherever possible. You’ll waste less time and money figuring out what needs to be done. Property managers will always save you money in the long run by taking the lead on finding reliable tenants and collecting on-time rent payments.

As you have likely noticed, the cost of doing business as a rental property owner is rising. While your rents have gone up, so have your expenses. You’re paying more for maintenance. You’re spending more when cleaners are needed during a turnover period or when you’re looking for landscapers. Replacing appliances will cost you more than it did a few years ago, and if your property value has increased over the last couple of years, you’re likely paying more for insurance and taxes. 

Vancouver property managers can help you manage those rising costs. We can ensure that you’re earning more and spending less.

If you have not already considered partnering with a local professional, now is the time to do it. Not only can your management company help you navigate an evolving market, we can also help you contain your costs and increase your earnings. 

Understanding Rental Values and Pricing Your Property

Are you earning the right rent? Are you pricing your property competitively and profitably? 

These are things a property manager can help you do. We have data that’s reliable, accurate, and up-to-the-minute in its relevance. 

When your rent is too low and not quite at market rates, you’re losing money every month. You’ll also find it’s more difficult for you to catch up during lease renewals. When you have a tenant who stays in place for years, that’s great for your retention, but you’re also slipping further and further below what you should be earning. You cannot underprice your home or you’ll lose money. 

You never want to price your rental home too low. The market has changed, and rents have gone up dramatically. We’re not suggesting that you charge an unreasonable sum, but we are telling you that property managers know what the market will bear. We know what you should be earning on your property. We can make sure your rental value is where it should be.

Overpricing is just as dangerous. It could contribute to a longer vacancy period or unqualified tenants. There’s a balance that needs to be struck, and if you’re not hitting that sweet spot, you’re probably spending more money than you should on vacancy, turnover, marketing, and simply waiting for a good tenant to rent your home.

Attaching the right rental value to your property impacts cash flow, ROI, and how quickly you’re able to find and place a good tenant. 

The data property managers collect and analyze is far more reliable than using Craigslist or Zillow to estimate what your rental property is worth. This saves you money. 

Minimizing Vacancy and Turnover Costs

When it comes to rental property expenses, vacancy and turnover can be your worst enemy. Not only is having an empty property unprofitable, high tenant turnover could also lead to increased maintenance costs and expensive ongoing updates and upgrades

A good way to avoid high vacancy and turnover rates is by leveraging the expertise of a professional property manager. With expert insight into the local market and growing industry experience, property managers can help minimize vacancies between tenants, which protects your investment and maximizes profits. 

Long vacancy periods cost you money. Even short vacancy periods cost you money, and property managers have strategies and systems to avoid them. We will quickly market your home, show the property, and screen incoming applications. We have the technology and the experience to make this as automated as possible, so we can save you money and focus on the tenant relationship and experience. 

Tenant turnover also comes with steep costs that are best avoided. Turnovers will be less of a financial risk when you’re working with a property manager for two reasons: 

  1. There are simply fewer turnovers. Professionally managed properties often result in higher tenant retention. We have the tools and the time to develop meaningful, positive tenant relationships. We respond to maintenance right away. We provide conveniences like online rental payments.  
  2. If you do have a tenant moving out, the turnover process will be more efficient and less costly. We’ll be able to clean, repair, and prepare the property for a new tenant in far less time than if you were doing it on your own. Our turnover times are brief and productive. We’ll save you money by ensuring the work is done quickly and the property is rent-ready in a matter of weeks instead of months.

Turnovers hurt financially. Property managers keep your best tenants in place and reduce the amount of spending that needs to be done when you are moving from one tenant to another.

Eliminating the Cost of Unqualified Vancouver Tenants

Tenants either earn you money or cost you money. 

Make sure you’re investing the time and resources into a sound and rigorous screening process, and if you cannot do that, there’s good news: a property manager can.

Property managers save you money by placing better tenants. If you’re settling for any tenant at all just because you want to get the process over and put someone in your property, you’ll find yourself spending money and time chasing down late rent, filing for eviction, managing lease violations, recovering from lease breaks, and cleaning up property damage at the end of the lease term. 

There’s never a good reason to place a bad tenant. Property managers will make sure your residents are thoroughly screened and well-qualified. 

Property managers protect your investment and your earnings by seeking out and screening the best possible renters for your home.  Your property management partner will have fair, consistent, and legally compliant screening systems, marketing strategies, and lease documents

Many property owners are surprised at how much money can be saved when a good tenant is in place. It contributes to higher earnings and a better rental experience altogether. 

Accessing Vendors and Maintenance Discounts

There’s no way to avoid it: maintenance costs are going up. You have likely noticed that not only is it more expensive to have a vendor come out to your property, you might be waiting longer for them to be available. Thanks to a labor shortage and higher costs, maintenance is altogether tricky. 

Unless you’re working with a property manager. 

Property managers can help you keep those costs contained with the following:  

  • Preventative maintenance policies. This cuts down on those expensive emergency repairs. It protects the condition and value of your asset. 
  • Outstanding vendors and contractors. We partner with professionals who offer us their best rates when we call them for help. An independent landlord won’t get much of a discount when they need plumbing work or landscaping. Property managers provide vendors with a large volume of work, thanks to all the rental homes we manage and maintain. That loyalty results in better pricing. A good property manager will pass those savings on to you. 

Save money on maintenance by working with a management company to handle repairs, renovations, and routine work.  

Avoiding Expensive Legal Mistakes 

Fair housing laws. Habitability standards. Security deposits. Emotional support animals. Evictions. 

There’s a lot to know when it comes to lawfully renting out your property.  Renting out a home on your own can often feel risky. Legal mistakes are expensive and easy to make, especially if you’re not up to date on all the nuanced laws and evolving requirements. 

Also, it’s not enough to simply know the laws. You have to comply with them. 

Property managers have a detailed and distinct understanding of what the state, federal, and local laws mean to you and your rental property. We understand them and we apply them. This protects you during the marketing process, tenant screening, and the entire lease period. Don’t put yourself at risk. Get some support and advice from a property manager, whether you’re trying to evict a tenant or even hold them accountable to their lease agreement. 

These are just some of the ways that professional property managers in Vancouver can save you money on your investment property. And, don’t forget that property management fees are tax deductible. This will save you some money when you’re reporting the income associated with your rental property at tax time. 

property management expert

Lean on the expertise and leadership of local property managers, especially when you’re trying to save money on your investment property. We are here to answer any questions, so if you’d like to talk more about how we can save you money, please contact us at Utmost Property Management. We manage homes for investors like you in Vancouver, Camas and the Greater Clark County area.