Having a rental property is a rewarding experience for many landlords because of the fact that it generates regular income. However, it is only the case when there are good tenants in your property, who pay rent on time and don’t cause damage to the units. When a landlord has to encounter a problem tenant, managing the rental property becomes a bit tough and time-consuming.
This is where the need for a property management company makes sense. It has got to offer numerous benefits to the landlords and mainly to those, who own multiple rental properties. From handling the legal aspects of your property to receiving rent on time, a property management company can help you quite a lot. But make sure that you only hire a company that is sure to fulfill your requirements.
There is no denying the fact that a property management company can become one of your most valuable assets. A proficient property manager can add significant value to your investment. Many landlords like managing their properties alone. But when you need help, hiring a property management company is worth considering.
Here are some good reasons how a property management company can benefit you.
Tenant screening is a time-consuming task and it is essential that you do it right. Though it is possible to get a bad tenant out of your property it is a real hassle and we know you don’t want to waste time doing it. In the first place, it is always better that you don’t let them into your property. After a thorough tenant screening process, you will find tenants, who rent longer, pay on time, cause less or no problems, and take care of the unit.
While it may be difficult for most of the landlords, a property management company does it on a daily basis. It has seen thousands of such applications and knows how to find the best tenant for a property. Once you hire a property management company, you will be protected against rental scams, lawsuits, and of course, bad tenants.
Minimum Legal Problems
It takes only a bothersome tenant to create havoc in a normal landlord’s life. From legal to financial headaches, everything comes complimentary with bad tenants. But a property manager can save you from all the trouble.
He is knowledgeable and follows the landlord-tenant laws to ensure that you are not leaving yourself vulnerable to a potential legal lawsuit.
Most of the state laws cover a few areas including tenant screening, evictions, safety and property conditions of the property, inspections, terminating leases, lease addendums, handling security deposits, rent collection, etc. If you want to avoid any kind of lawsuit, it’s better that you hire a property management company.
Shorter Vacancy Cycles
A property manager will help you in performing a lot of critical tasks that affect the time taken to fill vacancies in your property. He can help you in preparing your property for rent. He will consider all types of improvements your property needs to maximize revenue. You will also have someone to help you in determining the best rent rate. To determine the relevant rent for your property, it is important that you have knowledge of the data on recently sold comparables, access to rental rate tools, and local market.
A property manager knows how to market a property effectively. Any property management company has been doing this for years and knows where to advertise a property. Because of their connections, they can also negotiate cheaper advertising rates without causing any hassle to you.
More Chances of Tenant Retention
Evicting a tenant is not easy. The high tenant turnover rate comes with a lot of side effects that you will see for a long time. It involves changing the locks, thorough cleaning, painting the walls, and possibly new carpet or small repairs, along with the efforts you have to put for marketing, screening, showing, and settling in a new tenant. More than just being time-consuming, it is an expensive process that you can avoid by keeping your tenants happy and satisfied.
Most of the property management companies have a time-tested tenant retention policy to ensure that tenants have long tenancies in a property. They have a consistent, systematic approach to help landlords in all types of situations.
Stricter Rules for Rent Collection
How you handle your rent collection and late payments have got to make a huge difference in how you are as a landlord. To maintain a consistent cash-flow, it is important that you collect rent in a timely manner. You must clarify it to the tenants that they cannot negotiate on it. Hiring a property management company means you are putting a buffer between you and the tenant.
It is the company now that will chase down rent, listens to the excuses, and even evicts the tenant from your property if required. Your tenants will become only defiant if you let them. They must be trained in a way that they follow everything mentioned in the lease document without any delays. Property managers are at an advantage because tenants know that they are doing their job and will follow the lease terms completely. Many of the property managers even believe that managing a third’s person’s property is easier than managing your own property.
A property management company generally follows all the rules and regulations based on the outcomes. If you don’t want to face evictions any time soon, it is better that you hire a property management company for the services.
A property management company is well-versed with everything about the property even if it is about having an understanding of the deductions you can claim. It can also help you in organizing the necessary forms and documents you need for making those claims. You must know that even the property management fee is tax deductible.
Lower repair and maintenance costs
A very important part of being a landlord is that you keep your property well-maintained and repaired to keep your tenants happy. When you hire a property management company, you get access to their in-house maintenance staff too. You can also get the help of their network of bonded, licensed, and insured contractors who offer quality work and good pricing.
This can result in significant savings when compared to going through the yellow pages and then hiring a professional for you. A property manager is generally known to contractors and along with helping you in getting volume discounts. They have a great understanding of the maintenance issues and supervise the work intelligently.
Enhance the Value of your Investment
When the systems are put in place, preventive maintenance can be achieved in most of the places that require maintenance and repairs regularly. This also ensures that the problem doesn’t grow large and you don’t have to spend an unexpected amount. Detailed maintenance documentation, written maintenance check program, and regular maintenance visits are required to get it done.
If you have a property management firm by your side, you will always have someone for feedback and suggestions on modifications and upgrades so that you know how it will affect the rent charge and insurance and maintenance.
Personal Benefits for Owners
A property management company does have a lot of personal benefits for the property owners. The owners will be relieved from stress to a great extent. They won’t have to deal with chasing down rent, middle of the night emergencies, tenants who wreck your property, evicting people from your property, rental scams, piles of paperwork, and lousy vendors.
The owners get more freedom and don’t have to be near their property all the time. You can freely live and invest wherever you want without worrying about anything. You don’t even have to always be available in the events where you could be required. If you have a good property management company, it doesn’t even matter if you live in the same state or not. You can be that landlord, who lives far away from his property but still receives the rent in a timely manner.
You will have a lot of free time. We all know that time is money and for many investors, the words prove their worth. Instead of spending time on servicing their properties, investors like to invest their time on other important things that will provide great results. In addition, you will have more time to spend with your family and friends.
If you choose a property management company that is trustworthy, competent, and a good fit for your property, you can expect great results. But a poor choice can get you many headaches that you might not even be prepared for. So, it is always better that before you hire a company, you do thorough research and look for what the company offers. If you want to make sure that your property turns out to be fruitful for you, the company that you choose for your services must be experienced. This is the only way to get the maximum benefits of hiring a property management company.