Are you a real estate investor or considering investing in Toledo, Ohio?
Toledo’s residential real estate market has seen impressive and sustainable growth over the past five years. The cash flow potential for Toledo investment properties is some of the best in the country, so it’s no wonder that both local and remote investors are targeting our attractive market.
- Management of rent collection and late payment fees.
- Partner with an expert in how to maximize value in real estate.
- Property managers are local real estate experts.
- Shorter vacancy periods result in higher NOI.
- Better quality tenants through tenant screening.
- Help with city ordinance and state regulation compliance.
- Convenience in repairs – plus lower costs!
- Provide statements and assistance with bookkeeping.
- Toledo property managers make remote investing feasible.
- Hassle-free real estate investing with a Toledo property manager.
- Get in touch!
But when it comes to investing in Toledo, many wonder if they should hire a property manager or save a little coin and manage the asset independently. If you’re wondering if you should engage a professional property manager, this article is for you! Hiring a property manager isn’t just about having a hands-off Toledo investment property – it’s about streamlining your real estate business so you can focus on scaling, growth, and of course, enjoying your cash flow.
A property manager will save you time and potentially money. Residential property management can be time-consuming, overwhelming, and sometimes too much for many investors to handle. In fact, the tasks required in property management are one of the major drivers that push investors out of the market.
Hiring a property manager in Toledo could be one of the best decisions you make in your real estate investing career. But don’t take our word for it – we’ve compiled the top ten reasons to hire a property manager in Toledo. Discover why hiring a certified property manager can help you generate more revenue, protect your Toledo investment property, maximize ROI, and, best of all, gain peace of mind. We’re going to outline exactly how engaging an experienced property manager as your dedicated investing partner will save you time, money, and bolster returns.
Collecting rent might not seem like a challenging task, but the unfortunate reality is that tenants don’t always pay on time. Furthermore, if you’ve already scaled or plan to sell your real estate business, rent collection can be time-consuming and require significant administration and bookkeeping time. A property manager acts as a buffer between a landlord and the tenants, which allows them to be the ‘bad cop’ when it comes to rent collection.
An experienced Toledo property manager will receive, track, and record rental payments. Furthermore, they will navigate rent collection from tenants who haven’t paid on time. This often includes charging tenants late payment fees, which represents an added revenue stream for investors that many self-managed investors miss. Additionally, a property manager understands tenancy laws in Ohio and will advise investors when they need to initiate an eviction process due to non-payment.
A property manager works in the real estate industry day in and day out. It’s our main job, which means that a great Toledo property manager will have immense industry knowledge about maximizing an asset’s returns. In addition, we often make valuable suggestions to clients about how they can increase their revenue, decrease expenses, and improve their property for the best appreciation. When you engage a property manager, it also means that you can leverage their connections, such as tradespeople or accountants, who might otherwise be challenging to connect with (especially if you’re a remote investor).
Much like real estate agents in Toledo, a property manager is a local market expert. They have a detailed knowledge of seasonal changes in the local market and expected rental rates by the square foot. Pricing a property too high will result in fewer potential tenants, while pricing a property too low means that a landlord is likely leaving money on the table.
Rental property pricing is part of a strategy and careful balancing act of finding the right tenant in as short a period as possible without underpricing the property. The goal is to maximize income while minimizing vacancy periods.
A new leasing pricing strategy is only part of securing a tenant. A professional property manager will help landlords find the right tenant faster than most self-managed landlords can do. Firstly, they might know precisely what cosmetic improvements are needed to make the property attractive to tenants. Secondly, they will have access to a private network of tenants who they can market your property to. Often, a property manager will show a unit to a potential tenant only to find out that it doesn’t fit their requirements. A great property manager will then redirect the tenant to a different property in their portfolio.
Lastly, a property manager knows how to market a property. This means they know how to take photos of the asset, write detailed blurbs about the features for online listings, and where to purchase advertisements if needed. Because property managers handle many properties, they often negotiate lower advertisement rates on platforms like Zillow and Trulia or local paper media. Furthermore, a property manager acts as your sales representative. They know how to follow up with prospects, conduct showings, close a sale, and lock in a tenant right away.
Tenants are by far the biggest challenge in real estate investing. It’s a scary reality that a great tenant can be a huge asset to your property, while a bad tenant can cause more damage than the income they generate. Therefore, screening tenants is a vital aspect of residential real estate investing. Landlords want to ensure that the tenants they sign leases are capable of paying the contracted rent and will also care for the property while they are in residence.
An experienced property manager in Toledo will know how to screen prospective tenants. This means conducting credit checks and calling references. With years in the business, we know the red flags to keep an eye out for and will use our expertise to find quality tenants and avoid costly tenants. When finding a tenant for our clients, we look for parties who will:
- Rent long-term
- Pay rent on time
- Cause minimal wear and tear to the property
- Cause few problems
An experienced property manager like Oz Realty has seen thousands of tenant applications. We understand the complexities of communicating with potential tenants to dig into the facts, identify red flags, and sort out the good from the bad.
Being a real estate investor means that you’re offering a service – housing. As with almost any service (including housing), there are laws and ordinances that regulate service providers like landlords. A Toledo property manager will advise landlords of their rights and responsibilities as residential housing providers. Investors must be aware of and comply with these regulations, as not doing so could expose them to significant risk. A property manager’s priority is to help mitigate investor risk so that their asset has the strongest long-term ROI and their investment capital is protected.
Engaging a property manager means fewer legal problems because you’re partnered with a professional who is armed with a lot of knowledge and who can guide you away from costly mistakes.
Unless you’ve purchased a brand-new property, there are almost always going to be regular repair and maintenance costs. Some maintenance, if left deferred, can lead to huge bills for landlords, while others might be less vital. Managing and completing routine repairs and maintenance is essential to the longevity of a Toledo investment property. With regular inspections, we can identify maintenance issues before they lead to more expensive repairs. For example, a small leak in a sink could cause thousands of dollars of damage to the floor and support beams beneath. In addition, a property manager will respond to tenant maintenance requests promptly. That means better service for tenants, less hassle for landlords, and faster repairs to the property.
In addition to being a local repair and maintenance responder for investors, property managers have access to an expansive network of service providers, including electricians, plumbers, and contractors. We have strong relationships with service providers, which saves investors time and money when work needs to be done on a property. An experienced property management company like OzRealty knows who to call to get the job done. Furthermore, we’ve seen hundreds of repairs completed, so we have a strong understanding of the expected costs of most repairs. We know how to negotiate with tradespeople and avoid overpaying for repairs or maintenance. By leveraging our experience, a landlord can save thousands over the lifetime of their investment.
A skilled property manager will help maintain and even increase the value of your rental property through strategic maintenance and inspections.
The financial tracking and bookkeeping associated with real estate investing can be extensive, especially for investors with several properties. For example, all revenue and expenses should be recorded, and a file should be kept of maintenance requests, inspections, and signed leases. Property managers are familiar with standard accounting practices to help guarantee property bookkeeping of assets associated with investors’ various entities. For accounting purposes, it’s essential to keep track of all income and expenses to ensure you’re not paying too much tax and that you’re tracking the performance of an asset.
In today’s real estate market, it’s not always possible for investors to purchase property in their local real estate market. For example, a potential investor in an expensive coastal city like San Francisco or New York will find it challenging to purchase in their area but can easily purchase in Toledo, Ohio. The challenge with being a remote real estate investor is that you’re not aware of the local market and not present to complete inspections or regular maintenance tasks. Trusted property management companies make it possible for remote investors to purchase in less expensive markets with stronger cash flow. Engaging a property manager means remote real estate investors in Toledo have a local partner who can complete tasks that otherwise their physical presence would require.
Engaging a skilled property manager means investors have limited day-to-day stresses associated with being landlords. That means they have more freedom. For example, you can travel anywhere, anytime, without worrying about whether your property is being cared for or whether your tenant might have a maintenance requirement. This kind of freedom also means you have the time to commit to other ventures, whether purchasing more property, working on your business, your regular job, or spending time with your family. By letting a Toledo property manager care for your asset, you can allocate your time to better activities instead of micromanaging a rental property.
For more information on Toledo investment properties or how OzRealty can help you maximize the revenue and value of your residential real estate business, get in touch with Oz Realty today.