3 Simple Reasons Every Property Owner Needs a Property Manager

John McGrail

Owning rental property is a dream come true for many aspiring landlords. However, this does not mean that managing proper maintenance, tenant screening, and rent collection will always be an easy process. For owners who want to save time while reaping the maximum gain from their property, contacting a property management company makes practical sense.

Better Tenant Retention

It’s quite troubling when a property has multiple occupancies sitting vacant for months. That’s simply lost income. Property managers ensure that the property is ready for new tenants by making necessary repairs and cleaning and changing the locks. By responding to tenant complaints promptly, residents are more likely to stay in the unit.

More Efficient Rent Collection

One of the common challenges that property owners have to deal with is the issue of late payments. Hiring a property management company helps ensure a consistent cash-flow for the owner. The manager accepts the responsibility of rent collection and can pursue evictions for those who fail to pay.

Shorter Vacancy Cycles

Acquiring new tenants can be an overwhelming process for owners. Property managers can market the property to obtain tenants within a short period. Additionally, they can advertise vacancies both online and in print at reasonable rates, getting units filled and keeping owners satisfied.

The MG2 Approach to Vertical Integration

John McGrail

MG2’s approach to real estate investment is to capitalize on opportunities overlooked by others. But that’s only the beginning of the process.  As a vertically integrated firm, once we acquire a property, we are able to perform our own renovations and also manage the property through any stabilization period. Vertical integration provides MG2 four distinct advantages:

Cost control –When outsourcing construction, costs related to renovations can quickly outpace the budget, forcing changes to the original operating proforma. By operating our own highly-skilled construction staff, we are able to purchase the materials we need at discounted rates and complete renovation projects more cost-effectively.

Process management – Purchasing, renovating and managing properties is a significant task that, if not managed properly, can incur unexpected expenses or delayed timelines. Vertical integration allows us to manage every aspect of a project in-house, keeping budgets and timelines in check, providing added value to end-user tenants.

Differentiation – Operating a real estate investment company, construction company and property management company gives us access to the experts we need in every channel of the real estate business. Appraisers, bankers, builders, materials purchasers, management consultants and other industry professionals ensure that we are able to operate more effectively.

Improved efficiency – If you’ve ever worked with a large organization, you understand how difficult it can be to jump different levels of a company to get the information or approvals you need. By taking every aspect of the business in-house, we significantly reduce the time it takes to get the various aspects of a renovation process approved. This brings our properties to market sooner, helping to maximize investment potential.

As MG2 continues to grow, the foundation of vertical integration will serve as a vital component to consistently create value added properties. The expertise and know-how to take advantage of every step of the process, from acquisition to completion, puts MG2 in the unique position to succeed in Boston’s highly competitive real estate market.