PROPERTY MANAGEMENT

Many investors are surprised to find out how much money management is actually involved with residential property management. Once the right property in the perfect location is selected, many investors believe all they have left to do is collect the monthly rent check from their tenants and then wait for their investment to mature. What the true reality is, there are deposits, bookkeeping, income and expense reports and complete financial records necessary for year-end tax purposes. These overly time consuming but necessary functions can all be efficiently handled by a professional property manager.
Residential property managers become involved with the financial management aspect in order to assist their investors with better management of the overall investment. For example, an investor may be awaiting the monthly rent payment from their tenants, but a property manager would be able to readily assess and bill the tenant for any added fees for items such as late payments or non-sufficient funds.
Keeping the Records
A professional residential property management firm can help to maintain detailed records that will be helpful for annual tax purposes. There are also a number of local and state financial regulations that a residential property manager would be able to guarantee compliance with, removing this complicated and time consuming process from the investor.
An investor will also appreciate timely reporting on income incurred on the property or expense reports for necessary repair items. A residential property management company can also provide investors with access to market information to help insure the rental price is current with other similar properties and also to help assess the right time to sell.
A residential property management company can assist an investor with adequately managing the bookkeeping of the rental property. These details initially appear relatively simple but after a few late rental payments, incomplete paperwork required by a tax accountant and multiple repair bills- balancing the cost of the investment becomes critical in determining the overall profit.