Real estate owners can strongly benefit from hiring a property management company. Unfortunately, sometimes property owners aren’t aware of the services that a property manager can offer or how profitable it can be to make use of these services. Instead, property owners find themselves having to deal with unexpected costs and stresses related to their properties. Below, we talk about the key reasons real estate owners don’t hire property managers - and why owners should reconsider seeking help from a property management company.
The Cost of Outside Property Management
Because real property management has a cost, sometimes property owners mistakenly assume that hiring a property manager will hurt their bottom line. This is simply not true. While there is an upfront cost associated with paying a property manager, this cost is negated by the asset management services provided in return.
The services of a good property manager are especially important when considering the potentially high cost of a single mistake within the lease and rental management industry. A property manager is well-versed in industry standards and can offer you a higher level of protection against mistakes - and the costs associated with them.
According to real estate expert James Kimmons, “Many...have looked at property management and changed their minds when the scope of the management tasks and record-keeping are fully understood. It's definitely a niche for the more detailed and responsive in the profession.” In light of this, property owners may find that they are willing to pay the financial cost to avoid the stresses and potential issues associated with managing their properties.
Mistaken Ideas about Property Management
Property management is asset management. A real estate owner who wants to attain the highest level of financial success possible must treat the property as he or she would treat the management of an asset. This means that the property must be managed with as much care and attention as possible. However, sometimes a real estate owner unintentionally hinders his or her own ability to effectively profit from the property with mistaken beliefs.
For example, some owners may treat property management as a hobby instead of as the full-time job that it typically is. This is an especially common practice among owners who live close to their properties. However, property management can at times be difficult and complicated - and owners may struggle to keep up when it becomes a greater time commitment than they originally anticipated.
Property owners may also believe that an outside property manager will not care for the property as well as an owner would him or herself. While this belief is understandable, it simply is not true. Even though a property owner may be the most financially invested party in the success of the property, he or she may not have the skills, knowledge, or abilities needed to manage it effectively. Conversely, a highly-skilled outside property manager will be a comprehensive source when it comes to the effective management of a property - particularly when it comes to services such as those discussed below.
Lack of Knowledge Property Management Services
According to an expert panel of property managers and landlords, good property management practices include things like regularly checking on rentals, carefully screening potential tenants, effectively communicating with current tenants, and routinely keeping up with preventative and cosmetic maintenance. In addition to these things, a good property manager offers services far beyond building maintenance, rent collection, or filling tenant vacancies. These property management services can entail:
● Project management
● Real estate financial analysis
● Supervision of any building staff
● Administrative services
● Accounting services
● Guidance and assistance regarding insurance
● Risk management
● Purchasing and inventory management
● Regulation compliance
● Legal representation
● Customer service
These are services that can strongly benefit property owners of all types - whether the property is commercial real estate or residential real estate. Unfortunately, in some cases a real estate owner is unaware of these services - or that a need for these services even exists in the first place.
NGI Asset Management offers professional management services to provide you with the highest rate of return on your real estate investment. We deliver real estate solutions that respond to all of the unique needs of your business. Our business is founded on a dedication to service, a high level of industry knowledge, and a commitment to forging trusting relationships with each of our clients. Serving the tri-state area, we are well-positioned to provide NYC property management in addition to NY and CT building maintenance.
Our key priorities are to maximize your income, manage your expenses, and maintain open lines of communication with all of your tenants. We offer a customizable level of service to each of our clients. We can provide complete building management from the top down for properties such as large residential areas or retail shopping centers, or we can offer basic back-office administrative services to clients with smaller properties who want to be more hands-on without having to manage all of the office work associated with the property. Every owner decides how involved we will be in the management of his or her property - this allows us to offer each of our clients the best service possible.
Paul Dedvukaj Managing Director NGI Asset Management
1133 Westchester Ave – Suite N006
White Plains, NY 10604