Investors and Property Owners

Residential real estate has always been one of the top choices for investors looking to build their wealth and expand their portfolio.

Some property owners choose to manage their properties themselves based on the assumption that a property manager is an unnecessary expense, but is that really true? There is a significant risk of poor management skills affecting your profits more than a property management fee ever could, and property management has its own challenges. If you’re unsure what is the best choice for your investment, it’s essential that you understand how a property manager helps you.

Why hiring a seattle property management company is the right choice for owners and investors

The key benefit of using a property management company is they relieve the burden of all management responsibilites.

The demands of operation can be incredibly draining, especially if property ownership is not your only gig. Property managers take on the laundry list of responsibilities regarding property ownership so you can enjoy your profits without the stress.

Here are a few of the ways property managers make your life much easier:

Tenant Placement

Tenant placement is one of the largest jobs property owners face. There are dozens of responsibilities associated with tenant placement including: taking and reviewing applications, screening tenants with background, credit, and reference checks, and handling move-in and move-out due to tenant turnovers. Finding good tenants is a challenge for new and experienced property owners, but a professional property manager makes it look easy.

Marketing and Showing Your Property

Before tenants can be placed in your property, they must be able to find out about your rental. Professional marketing tactics are guaranteed to fill your vacancies faster than any DIY marketing efforts. Even if you think you know how to market your property effectively, a property manager can do it better. Subsequently, showing the property to prospective tenants is an important step in securing renters – and profits. A professional property manager knows how to market your space to prospective renters to improve previous rates of placement.

Hands-Off Approach

A property manager benefits property owners in countless ways, but one of the most valued by investors is the hands-off approach to real estate investing. From minor to major responsibilities, managing a property can take up a significant amount of your time. Your time is valuable, so allowing a professional company to handle those responsibilities frees you up to focus on more important things while reaping the rewards of property ownership.

Unit Issues

While every property owner hopes that nothing goes wrong with a unit, problems arise unexpectedly that require maintenance, repairs, replacements, or contractors to fix. A property manager responds to any and all problems occurring on your property, including plumbing, electrical, damage to the unit, and more. They also schedule regular preventative maintenance and care of your unit to prevent minor issues from becoming emergencies down the line, saving you money in the long run.

Evictions

Dealing with a tenant who won’t pay rent or is causing extensive damage to your property is a problem that no property owner wants to encounter. By using a property manager in Seattle, the process of eviction is not your responsibility. The property manager will proceed with verbal and written warnings before setting a date for eviction and ensuring the tenant leaves the property with their belongings.

Legal Compliance

A rental property is subject to numerous regulations and rigorous standards for operation tactics, cleanliness, privacy, finances, and more. It can be a real headache to educate yourself about all of these rules, codes of conduct, and paperwork requirements, but a property manager can handle all of it for you so you know that your property is adhering to all legalities.

Financial Organization

When owning property, the main goal is to earn profits. Unfortunately, there are also countless expenses that must be considered including bills, property taxes, salaries or hourly wages to any staff, maintenance expenses, and more. Rent collection is not always easy either, and organizing all of the finances relating to your property can quickly become overwhelming. Experienced property managers have systems and processes in place that make the management and accurate tracking of your property’s finances simple and efficient.

Routine Inspections

Though most tenants are usually clean and respectful of your property, once in a while you may end up with a nuisance tenant with the opposite behaviour. Regular inspections are necessary to ensure that your property is being well taken care of by your tenants. A property manager will inspect for damage or ill use of the space and can then take the necessary steps to issue written warnings, repair the damages, and remove the tenants if need be.

Industry Experience

Buying a property is a big step, but managing it is the far more stressful experience. A property manager has the experience and industry knowledge needed to operate a successful rental property. Their expertise can increase your profits, reduce the headaches associated with managing a rental property, and streamline the entire process for you. Their industry experience is priceless if you plan on enjoying the rewards of your property investment for years to come.

Maximum Profit vs. Maximum Freedom

Since a property manager takes care of so much for your property, it may seem like a no-brainer to some that a property manager is the only route to take when owning and investing in rental properties. However, many owners/investors hesitate at the idea of losing profits to save a bit of time. Their rationale is that the only way to maximize profits is to reduce expenses at every turn, so hiring a property manager is an unneeded extra expense.

However, time is also money and your time is almost certainly more valuable than monotonous tasks relating to property management.

So, while you may maximize the profits directly tied into your property, you may be losing out in other areas of your life due to the time sacrifice you make.

Investors often choose real estate because they want passive income, but doing it all yourself will quickly feel like more work than it’s worth, especially on smaller properties with only one or two tenants. Instead, let a property manager provide the freedom and passive income you’re looking for.

Seattle Property Management for Non-Local Investors

It’s no secret that the Seattle/Tacoma area is ripe for non-local investors wishing to get their foot in the door. The Seattle housing market is incredibly competitive with regular annual property value increases of 15-30%. These Seattle homes also accompany historically low interest rates compared to state and national averages, but the rapid expansion of the Seattle housing market will soon make it unaffordable for many investors. Seattle remains a strong seller’s market with homes flying off the market quickly and at excellent prices, so it’s important to make your move into the market before it is too late.

This is a great time to begin investing in the Seattle housing market, but it can be a real challenge for non-local investors who can’t physically manage their Seattle/Tacoma locations.

The Cost of Property Management in Seattle

When looking at getting a property manager to handle your investment for you, one of the most important questions you’ll have is if you can really afford their services.

Since they do so much for you, it would make sense that it would be a bigger expense than you’d like to acquire. Fortunately, property management services in Seattle only cost between 8% and 12% of your monthly rental value. Some companies choose to charge a static monthly fee while others base their price on the rental income of your property.

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However, there are a few factors that may influence the cost a property manager:

Vacant unit charges may be necessary if you're hiring a property manager for a currently empty property. The property management company will have numerous upfront expenses including advertigins and marketing costs, preparing lease paperwork, showing the unit to prospective renters, and other initial expenses.

*WE DON'T CHARGE FOR THIS

Tenant Placement may bring extra charges of around 50% of the first month's rent, or another calculated bonus. However, not all property managers will expect a bonus for obtaining a tenant, and you should not expect to a pay a fee for thisservice if you have already paid a vacant unit charge.

Occupied Unit charges. Some property management companies will also only charge you for months with a tenant occupying the space, or may reduce their fee if there is no tenant in your unit.

Evictions can cost a few hundred dollars plus court costs since they are incredibly time consumir and tedious.

Occupied Unit charges. Some property management companies will also only charge you for months with a tenant occupying the space, or may reduce their fee if there is no tenant in your unit.

*WE DON'T CHARGE FOR THIS

Overall, considering the freedom a property manager offers, even 15% of your monthly rental income is a small price to pay.

What Sets

Cadenza Apart as a Property Management Company

Most property management companies operate the same way: they focus on the easiest money in the short-term. Cadenza is different.

Instead, there is a focus on maximizing long-term profits, building a trusted reputation as a desirable rental space, and increasing revenue through upgrades, repairs, and excellent marketing.

Cadenza Property Management puts in the extra work to bring you high-quality tenants, consistent profits, and completely passive income month after month.

Plus, Cadenza Property Management isn’t only a property manager. They are investors too and understand exactly what an investor’s needs are when it comes to property management. While other property managers are happy to maintain the status quo and collect their monthly fee, Cadenza helps owners on the ground by balancing immediate cash flow with a pragmatic approach to maintenance which optimizes the long-term value of your investment.