While your multifamily property investment may not look like a traditional business, you still need to treat it like one. Create a business plan, set goals and benchmarks, and ensure everything you do complies with local and federal housing laws. To attract and retain tenants, your property needs a stellar reputation. Most importantly, you need to know the ins and outs of multifamily property management, so we created a list of the most frequently asked questions we’ve come across during our work with property owners and managers.
What Exactly Do Property Managers Do?
While new apartment complex investors could certainly perform their own property management tasks, it’s a complicated and time-consuming process that takes experience. To take a more passive role in property investing, choose a professional and successful property management team to do the heavy lifting — like our team. We collaborate with investors interested in buying properties and property owners looking to either sell their assets or have them professionally developed and managed.
Can My Property Management Team Handle the Accounting?
Absolutely – in fact, this is one of the most significant benefits of working with a property management team as a multifamily investor. Property managers know the current rental market. After all, it is their job! They’ll be well-versed in rental prices and rent collection and skilled in using software that streamlines these processes. Your property manager will keep rental prices in line with the market, ensuring you’re not undercutting your investment or outpricing your property. This is especially beneficial for out-of-state investors who aren’t familiar with the local markets.
Will My Property Management Team Tackle Necessary Maintenance?
Property managers oversee on-site maintenance, which is a great way to identify minor issues before they become significant and costly, impacting your property value. Preventative maintenance can entail several tasks: repairing damaged asphalt in parking lots, performing yearly checks of unit HVAC systems, and addressing minor plumbing problems to mitigate the need for major overhauls or replacements.
Does My Property Management Team Have to Implement Marketing?
Like any business, multifamily properties require consistent marketing to attract tenants and reduce vacancy rates. Property management teams take on the marketing for your property, directly contributing to your bottom line by bringing in new renters. It’s also one fewer task that you need to take on yourself.
Is the Property Management Team Trained and Equipped to Offer Stellar Customer Service to Tenants and Vendors?
Managing an apartment property investment isn’t easy, and keeping tenants happy means landlords can keep vacancy rates low and cash flowing in. It’s not hard to understand why customer service should be front and center for owners, which is why the most intelligent investors recognize this scope of work and choose to turn to property management experts to help with the job.
Can My Property Management Team Ensure the Safety and Security of My Multifamily Property and Its Tenants?
Whether you’re a landlord or a tenant, the key to apartment complex safety and security is working with a skilled and experienced property management team. They are the first point of contact for tenants who need issues resolved and the problem-solvers for overloaded landlords that can’t be on-site 24/7. It takes everyone working together and staying vigilant to keep the property free from crime that could impact tenancy rates and tenant well-being.
Will the Property Management Team Help When I’m Ready to Sell?
It takes a team of professionals to truly understand and successfully calculate the income capitalization approach – a common method of multifamily property valuation. LEX Group, Inc. is a St. Louis-based commercial real estate investment firm specializing in buying, renovating, maintaining, and selling greatly improved multifamily properties. We seek multifamily properties for our investment portfolio, specifically affordable, mid-density, and high-density developments, as well as government-subsidized projects working with local, state, and federal financing. If you’d like to learn more, feel free to contact us!