Success with a managed rental property relies heavily on three primary relationships working together- the Property Management Company, the Investor-Landlord and the Tenant.
The Property Management Company works on behalf of the investor-landlord, under the terms of a contractual agreement that defines the working relationship between the two parties for the mutual benefit of making the rental property a great home for tenants to live in, and a profitable asset for the investor-owner.
The Investor–Landlord (IL) is entrusting the management of the property and its tenants, so it can deliver the IL a positive ROI. The goal of any IL is sometimes about the short-term, but more often the long-term investment mindset of building wealth creation through their real estate portfolio. Reasons for rental investing vary based on the IL’s strategies such as building a “nest egg” for retirement, paying for their kid’s college education or could be to have a legacy to pass down to their heirs. Whatever their strategy, the IL and Property Management company must work together to generate positive cash flow.
The Tenant pays for the right to occupy the home and works together with the property manager to care for the IL’s investment. Tenants are often looking for a decent home at a fair price, where they can enjoy their life while adhering to the contractual agreement of the lease. The Property Management company helps ensure the Tenants care for the property while staying in compliance with maintenance upkeep, rent payments and more.
Closing Thoughts
What brings the Property Management Company, Investor-Landlord and Tenant together is the HOME. If each party has a better understanding of the working relationship between the parties, and goal for themselves, then then the IL’s ROI increases and the Tenant has a great place to live. Contact Assign Property Management to learn more about how we successfully deliver the results each party wants.
Article written by Deanna Parnell and John Davis