Many private homeowners choose a property manager, many responsibilities are thereby shifted from an owner to the property manager such as direct contact with the tenant and arranging maintenance. If you as a landlord do not feel like or have the time to take on the operational and administrative tasks, choose a property manager!
Some of the benefits of hiring a property manager are:
1. Rental administration: A property manager can advise what kind of tenant would be appropriate for the rental property, the actual rental is generally outsourced to a rental agent but a property manager can work with the landlord to select a suitable tenant. In addition, an administrator drafts or checks the rental agreement for inaccuracies. A property manager collects rent payments and handles any arrears.
2. Maintenance and repairs: The property manager arranges and coordinates all necessary maintenance and repair work on the property. This can range from minor repairs to larger renovations. A property manager is not responsible for overdue maintenance or the costs incurred as a result.
3. Tenant communication: The property manager acts as an intermediary between the tenant and the owner. They handle questions, any complaints and other communications from tenants. An entire day's worth of questions or problems may arise from tenants, so it is nice to have a property manager available 24/7 for quick resolution.
Inspections: If a landlord so desires and when agreed upon with the property manager, it is possible for a property manager to conduct regular inspections of a property. This way it is possible to identify any problems early.4.
4. Additional administrative tasks: Property managers can also handle administrative tasks, such as keeping track of financial data, tax payments and reports to the owner.
The benefits of hiring a property manager:
Time savings: Outsourcing tasks to a property manager saves the owner valuable time that would otherwise be spent on administrative tasks and tenant management.
Professional advice: Property managers often have experience and knowledge of the real estate market. They can advise owners on market trends, pricing and investment decisions.
Stress reduction: Property management can be stressful, especially with tenant problems or maintenance issues. A property manager can alleviate these concerns. The initial contact between a tenant and landlord is eliminated; many owners find this very pleasant.
Cost control: Through proactive maintenance and repair management, property managers can help minimize unexpected costs.
If you own multiple properties, it is often more tax advantageous to place the management with a professional. You will then be taxed in Box 3 instead of Box 1. You get more out of your rental income this way. If the tax authorities consider that you are overly involved in all the activities related to renting out your properties, this could be considered other work or profit from business. That would mean settling in Box 1 - Taxable income from work and home.
Regarding other tax benefits, hiring a property manager itself does not directly provide tax benefits. However, the cost of hiring a property manager can often be considered a business expense, which can reduce taxable profits. In addition, there may be local tax benefits for certain real estate investments, but these vary greatly by region and depend on specific laws.
It is always advisable to speak with a tax advisor to understand the specific tax implications of property management in your region.
A satisfied tenant is important! Make sure there is good mutual contact.
