Why would a company like a real estate investment firm need in-house property managers? What is the value of having in-house property managers?
Property managers can be an integral part of a commercial real estate firm. They have the knowledge and skills to manage the day-to-day operations of a property, including leasing and maintenance. In this article, we will explore why real estate investment firms need in-house property managers.
In-house property managers are great for many reasons. They are responsible for managing the day-to-day operations of a property, which includes leasing and maintenance. This is especially important when it comes to areas that require specialized knowledge such as tenant relations or construction management. These are all skills that make a property manager invaluable.
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With in-house property management, the investment firm does not have to pay for outside workers or third party services.
A big benefit of in-house property management is simply that it reduces costs. If an investment firm owns its own properties, it does not have to pay the inflated prices for outside workers or third parties to manage them. This results in lower costs for the company and a higher ROI. These managers can manage multiple properties over multiple locations. They have the required skills and knowledge to handle all the ins and outs of a property in any given area. So instead of having to waste time finding outsourced managers in each area, a manager on your team can more efficiently setup a new property with all it’s needs.
Streamlined Communication Process
When an investment firm has on-site property managers, they will be privy to any changes or news as they happen. This provides transparency and reduces frustration.
Simply Put: The team property manager will be able to keep everyone in the loop. There is no need for a chain of command and the investment firm can quickly and easily relay information. This saves a ton of time and headache.
Communication is streamlined when an investment firm has on-site property managers. Because the communication process doesn’t have any “middlemen”. This also means that the schedule of the property manager is known to the investment team. No more straight to voicemail calls and unread emails.
Property Managers will have more experience than your company and can make more informed decisions about what to watch for in a property. Investment firms may have more experience when it comes to investing, but the people at your company do not want to be tasked with their knowledge of the industry. A Property Manager can be a valuable asset in the purchasing decision.
Enhanced Security & Productivity.
Enhanced security and productivity are the two great benefits of having a modern Property manager on staff. Let’s face it, a lot of the work inside an investment firm is prospecting for new properties. Nobody wants to babysit their portfolio of properties. Because of this, very important details can be missed. Having a property manager means someone is always keeping a close eye on the property.
The on-site property management also increases productivity in a number of ways. They know how to find the best repairmen, what 3rd party sources to use and how to use them, and what potential problems you will have with tenants for rental properties.
Yes, it is an added expense to hire a full time property manager. But once you calculate the time saved, along with the increased ROI potential from having a literal property expert on your team makes it well worth the cost. If you want to learn about more benefits of property managers, check out our article about hiring a property manager for your vacation rentals.