A great realty management company is one of an investor’s most important assets. Even though the real estate itself is great, it’s a great management company that makes the investment worth it.
The reasons why are the exact same reasons why this industry will never go away. Even though things like rental property management software does make a property manager’s job easier, you still need people tracking things.
In fact, here are five reasons why I don’t think the industry is going away anytime soon.
Reason #1: Realty Management Offers that Human Connection
Your tenants don’t want to just deal with a computer. When something goes wrong, they want access to a person to help them fix their situation.
Can you connect them directly to the maintenance team? Maybe – but that’s not always the best solution. A maintenance team works best when they have someone else setting up their schedules. That frees them up to do what they do best- fix things!
When your tenants are going to be late on their payment, how do they tell a computer that? Can a computer understand the person’s tough situation and help them work out a solution? Not really. But a person can- that’s what good property managers are for. They can be tough when they need to be, but they can also be accommodating and help create win-win situations when there isn’t one in plain sight.
Reason #2: Realty Management Provides a Second Set of Eyes
When you were in school and had some kind of paper or report to turn in, did you ever give it to other people to review before turning it in? This was something I always tried to do, as it helped ensure my paper didn’t have any typos, misspellings, grammar errors, etc.
Even now with the all-powerful Spell Check, things get missed by software.
That’s why having a person review documents comes in handy. From simple things to misspellings to much bigger, more important things (like leaving a “0” off the monthly rent payment on the contract,) having a person available to double-check important documents isn’t something we can do away with any time soon.
Reason #3: Realty Management Screens Tenants in a Way No Computer Can
There are several quantifiable things examined when a property manager is interviewing a potential tenant:
- Tenure at current employer
- Credit score
But there’s a lot more to screening tenants besides just looking at the numbers. While they tell part of the person’s story, it isn’t everything. Good property managers know they are also looking for other things in the person.
For example, do they seem like a slob? If they don’t take care of themselves they’re more likely to trash the home, which is a mess for the property manager and landlord to clean up later.
Are they polite and conversational, or do they seem entitled or like they have a chip on their shoulder? Realty management personnel know they have to be willing to work with tenants throughout the length of the contract. If the potential tenant isn’t pleasant, that’s not a good sign.
A computer can’t judge these things! The closest thing they can do is look at personality tests.
Reason #4: Bring the Community Together
This doesn’t apply as much for property managers taking care of single-family homes. But this can be important for landlords who own multi-family home, even if it’s just four or eight units.
Even though some people living in apartments may talk and get to know each other, most people keep to themselves. A great realty management company will do things to bring everyone together. For example, they may plan an ice cream social or pool party in the summer. They may put on a Thanksgiving potluck in November.
Things like that seem small, but they’re great for bringing a community together. No computer can do that.
Reason #5: Be the Eyes and Ears of the Landlord
As buildings get older, they tend to need work done on them. Windows need to get replaced, a new paint job may be necessary, the grass might die, etc.
A realty management company will alert the investor when these things should happen. A computer can’t look at the property and evaluate the paint job, nor can they determine when a new roof is needed. But a live person on the ground can- and does.
That saves landlords from having to come out themselves and take a look. And even if they did, they may miss things because they aren’t around the property and tenants as often as the property manager.
In short- people in realty management don’t have anything to worry about. Even though computer automation is taking some jobs away, the human aspect necessary to manage properties isn’t something that can be outsourced to a robot.