The real estate world is an ever-evolving market. Rental property owners with larger portfolios are left with two options: a locally-based property manager, or an out-of-state manager. You may think the latter may be a bit more cost-effective. However, there are numerous benefits to working with a local property management company. RENEW Real Estate Services has been operating out of the Nashville area for over a decade. We do not manage any properties outside of our local area. Read along to explore many of the benefits of having a property management team near your rental properties.
Understanding the Local Market
Knowing the Neighborhood
One of the biggest advantages of having a local property manager is their in-depth knowledge of the area of your rental property. The property managers live, work, and likely invest in that area, so they know the market like the back of their hands. From rental trends to the local market, a local team better understands the unique dynamics that determine your property's potential. This information allows them to properly market and manage your property.
Personalized Marketing Campaigns
Hometown property managers know exactly how to position your property in the local market. They will have a better understanding of the target demographic and can tailor marketing strategies that accurately resonate with potential applicants. A personalized marketing campaign can make a big difference in the amount of attention that your rental property gets. This is the best way to attract high quality tenants.
Hands-On Maintenance and Emergency Response
Proactive Maintenance
In the property management world, preventative maintenance is always more cost-effective than reactionary maintenance. A local property manager should have a team of qualified local technicians that can proactively address maintenance issues before they escalate. This hands-on approach will ensure that your rental property remains in good condition, preserving the value of your precious investment.
Rapid Response to Emergencies
Local managers can quickly and efficiently handle emergency maintenance issues. In the event of a major electrical issue, active leak, or any other emergency, your property manager can swiftly contact the proper technicians and see that the issue is promptly handled. Not only does this keep your property in good shape, but it also fosters tenant satisfaction, reducing your turnover.
Personalized Tenant Relationships
Face-to-Face Interaction
Building a personal relationship with tenants is one of the biggest benefits of a local property management company. Most people feel more comfortable when they can put a face to a name. These face-to-face interactions help create a personal connection between the tenant and the property manager. Human interaction will likely increase tenant satisfaction, which in turn reduces turnover and increases referrals.
Local Insight for Tenant Retention
Having a deep understanding of the local areas allows property managers to tailor their approach to increase tenant retention. By increasing lease renewal rates, your property manager is putting more money in your pocket while reducing maintenance costs. Each time a tenant moves out, your property manager will need to schedule an inspection, address all maintenance issues, clean the unit, then re-list it. Avoiding a unit-turn can save you tons of time and money over the years. Most times, offering a reasonable lease renewal with a modest rent increase is the best way to reduce turnover.
Navigating Local Regulations
Up to Date on Local Laws
Real estate regulations vary from state to state and even city to city. By using a local property management company, you can rest assured that your property is in complete compliance with the local laws and regulations. The last thing you need as an investor is to get caught up in a legal issue due to negligence on the part of your property manager. This not only protects your investment but avoids headaches down the road.
Relationships with Local Authorities
Because your property manager operates locally, they should have established relationships with local authorities. Having these relationships makes navigating bureaucratic processes and addressing compliance issues much easier. The amount of time and money saved due to these relationships is a major benefit of having a local property management company on your team.
Efficient Communication
Convenient In-Person Meetings
Technology has made communication much more accessible. However, there is no substitute for face-to-face meetings. Many people find comfort in the idea that they can come and meet with their property manager in-person to discuss strategy, marketing, and any other important topics regarding their rental property. You'll also save tons of time and money in travel by having a nearby property management office. RENEW's office is conveniently located in East Nashville. We are within roughly 30 minutes of all of our rental properties. The ease of access is a huge benefit to partnering with a local property management company. We encourage our owners to stop by the office any time to chat with us!
Bottom Line
As you can see, there are so many reasons why a locally-based property management company is the better option. Having a deep understanding of the areas, nearby maintenance technicians, personalized relationships, understanding local regulations, and community involvement are just a few of the many benefits of a local property manager. Often times, the local property management company will have the same management fees as the out-of-state offices. In that case, there is almost no reason to choose an out-of-state management company. If you happen to own some rental properties in Nashville or the Middle Tennessee areas, give us a call! We at RENEW would be more than happy to discuss our management services with you in greater detail!
