Investors in the Kansas City Metropolitan Real Estate Rental Market are consistently searching for efficient, trustworthy property management companies that charge competitive rates and keep occupancy rates high. These are difficult challenges that require attentive diligence by the management firms.
Finding long-term tenants that are committed to taking “ownership” of their unit can be quite cumbersome and is the reason why we require that each tenant is properly vetted through a thorough background and credit check. This not only reduces the liability of the property managers, it also reduces the liability for the investor. Tenants with little to no criminal background and good credit history are more likely to keep their unit clean, and maintained. They are also more likely to report any maintenance issues to management very quickly, which in turn leads to a reduction in overall deferred maintenance costs. These tenants are statistically proven to become long-term renters, helping to maximize cash flow and reduce vacancies. Simply put, finding the right tenant for each unit is the foundation of success for investors and their property management companies in the rental housing industry.
The relationship that a property manager develops with the tenants they are servicing is key to the production of a mutually beneficial relationship. While the property manager serves the owner of each property first, a friendly bond must be developed with their renters. This will ensure that there is proper communication between the two parties when potential problems arise such as emergency or routine maintenance, and even in the unfortunate event of a financial hardship that results in delinquent rent payments.
At times, investors and their management companies can become too focused on immediate cash flow and long-term appreciation value potential is often undervalued. In order to produce moderate appreciation, performing proper and timely maintenance must be a focus of any investor when searching for a property manager. Routine tasks, such as painting, carpet cleaning, plumbing maintenance, and lawn/landscaping care are services that an investor must ensure that their property manager can readily provide. It is also important for the property manager to have a good relationship with an eviction service provider, because, although unfortunate, the eviction process is necessary at times.
Accounting practices are also a fundamental investment strategy, and investors should make certain that their rental payments and expenses are being tracked diligently. There are a number of software services available to help both property managers that help them to compile detailed information for their portfolios. Some of the most popular services are Appfolio and Quickbooks to name two of the many options available. Some services actually allow tenants to make rental payments through a web based application and investors can also be given access to their properties through a similar application.
As the investors move funds from the stock, bond, and equities markets to real estate investments, it will be important for property management services to appeal and acquiesce to the needs of a growing real estate rental market. The key being successful in this market is to make absolutely certain that you are renting units to individuals that could easily become long-term tenants that truly care for their residence and your investment. Help them truly feel at home. We have only touched the surface of what is desired and needed by investors so please feel free to contact us to discuss your options with Kansas City Property Management Group Inc.