What You Need To Know About Property Management In Seattle
Do you own a rental property in Seattle or its surrounding areas? If you do not own any property there, are you planning to invest in real estate in the area or become a property manager? Well, if you fall into any of the above categories, then it is very important to start by doing a thorough study about property management in Seattle before deciding whether you are going to manage your properties by yourself or you are going to hire a property manager to help you. In order to help you make a more informed decision, here is an insight on property management in Seattle to highlight some of the key things that you need to know.
1. Property management can be expensive and time-consuming
The city is one of the real estate hot spots in the country and both tenants and property owners have high expectations and demands to be met. This makes the task of managing properties in the area very expensive and tedious. If you are a property owner and you plan to manage your investment by yourself, you need to have adequate time and resources to satisfy the needs of your tenants. On the other hand, if you are planning to venture into the business of property management in the area, you should be prepared to work hard to meet the demands of your clients (tenants and property owners). You also need to be well equipped with adequate resources in order to deliver your services satisfactorily. Management fees generally range close to 10% of rent so it is important to make sure you can afford to pay that amount before hiring one.
2. Competition is very high
Property management is highly competitive in Seattle and other cities in the country where the real estate market is nearing its peak. The real estate market in the region has attracted many property managers from different parts of the country and everyone is struggling to take advantage of the booming market. Whether you want to be a property manager or you own some properties and you are undecided on whether to hire a professional to help you or not, it is worth noting that competition is teething in the area. Therefore, if you feel you do not have adequate marketing skills to survive the competition, it is wise to hire a qualified property manager to help you.
3. Rental management is profitable
One of the most profitable ways to increase you investment portfolio is by hiring a property manager to take care of your property. By outsourcing the management of your investment property it will leave you with more time to focus on growing your real estate portfolio. The more properties you own, the more help you'll need from a property manager, so make sure you find a qualified one!
4. Property management in the area is regulated by strict laws
Seattle is among one of the cities in the country with strict laws that all stakeholders have to adhere to. The local government is aware that there are unqualified people who pose to be property managers to take advantage of the booming market. Consequently, the local authority has established strict laws to regulate the market. These laws aim at protecting the rights and interests of property owners, tenants and property managers. Violating any of these laws can result in a jail sentence or even paying a heavy penalty. Whether you want to invest in the area, rent some property or start a business as a property manager, it is very important to make sure you understand the state and local laws that regulate the market.
5. Only professionals are allowed to operate as property managers in the area
The housing and local authorities in the area are very concerned about who is allowed to operate as a property manager in the city. The law requires every person to be well trained, and pass the required examinations before he or she is allowed to operate in the area as a property manager. Consequently, all property managers are expected to be properly registered and licensed to operate as property managers unless you are managing your own properties. Remember that the authorities have the power to invalidate the license of any property manager who fails to adhere to the set laws.
6. Reputation is very important for property managers
This goes to anyone planning to start a business in the area as a property manager. It is worth noting that reputation is very important because property owners prefer hiring highly reputable managers to take care of their investments. More so, potential tenants are likely to occupy a property if a reputable manager manages it because they are have confidence that they will get quality services. This means that it is important to serve your existing clients the best way possible so that you can build your reputation and attract future clients. It is worth noting that the majority of the property owners in the area rely on referrals, reviews and ratings before hiring a property manager to look after their investments.
7. Rental rates are very high and properties are expensive
Seattle is among the areas in the country where property prices are reaching its peak. Properties are very expensive and rental rates are very high. It is therefore very important to make sure the properties you are managing are reasonably priced in accordance with the market rates if you want to maximize your returns. This is irrespective of whether you are managing your own properties or you are a property manager taking care of properties on behalf of your clients.
8. It is the responsibility of property managers to handle all tenancy issues and tasks
When you hire a property manager in the area, he or she should be in a place to handle all tenancy issues and property management tasks. Some of the key responsibilities that a property manager in the area should be able to perform include screening tenants, collecting rent and rent deposits, repairs and renovations and filing tax returns on behalf of their clients among others.