If you own real estate property, you should look for a qualified property management company to care for your property. Even though you will pay some fee, it is worth it because they have the following benefits:
They look for higher quality tenants
Imagine the hassle of screening tenants yourself over a long period. It is a daunting task, and you could end up getting a bad tenant who will even worsen your problems. On the contrary, a management company has skilled workers who carry out regular and in-deep screening to have high-quality tenants who are easy to handle because:
- They pay rent on time
- They rent for a long period
- They put less wear and tear on the unit they’ve rented
- They are easy to handle
In fact, these property management companies have workers who have been working for a long period enabling them to see a lot of applications over the time. Therefore, they can easily dig for facts about the applicants, and they are hence able to look for warning signs. Additionally, you will be shielded from rental scams which are directed to property owners.
You will have fewer costly and time-consuming legal problems
If you’ve rented property to tenants, it takes only one of them to cause a real headache and financial problems over a dispute. Hiring a good property manager will enable you to avoid these costly and time-consuming legal problems.
Since it’s their area of expertise, property managers have knowledge about landlord-tenant laws to make sure that you are not vulnerable to potential lawsuits. There are different laws in each municipality and state covering the following areas:
- Lease Addendums
- Collection of rent
- Screening of tenants
- Safety and property conditions of the property
- Termination of leases
If you don’t possess required knowledge on these areas, you may end up having a lot of problems with tenants and government in courts.
You will have shorter vacancy cycles on your property
To be able to fill your vacancies within the shortest time possible, a property manager will help you improve the following three areas:
- Improve and prepare the property –with an experienced property manager, he or she will suggest and oversee implementation of cosmetic improvements which would lead to revenue maximization
- Determining the best rent rate – determining the optimal price of a property requires you to have knowledge of the local real estate market, data of property recently sold comparable to your unit and even access to rental rate tools which are available. If you charge too high, you will have few or no tenants, and if you charge too low, you will be losing money on a monthly basis. This is one of the reasons why you need the help of a good property manager.
- Market your property effectively – a property manager has been in real estate market for a long time, handled numerous business deals, marketed and sold other property and therefore he or she possess the skills and experience to market your property effectively. A good manager knows how to advertise your property, the platforms and even what to say to get a lot of candidates. If you need to sell your property after some time, you will have maximum profits with less struggle if you have a good property manager.
They help retain your tenants
Even though losing tenants may seem normal, there are serious additional charges which may emerge. For instance, your property may need thorough cleaning, changing door locks, painting the walls and other repairs which may be needed to make your unit appealing. Also, you need to include marketing, showing the unit to future tenants, screening tenants and settling the tenants. All these activities could turn out to be expensive, time-consuming and tiring. Hence, there are benefits of retaining your tenants for long which property management companies are good at. Since they are professionals, they know how to make their tenants happy and feel cared for and thus retains them for a long period. Navigate here to find out more.
They have an effective rent collection process
As a landlord, you may be faced with different problems on rent collection and late payment of the rent leading to a disrupted cash flow. A solution to this problem is hiring a property management company to run your property. Normally, they have a regular cash flow because they collect rent on time making tenants understand that rent collection is not negotiable. Since you’ve hired them, they will chase down rent, listen to excuses, and evict a tenant when necessary just to maintain a regular cash flow. In fact, most property owners confess that it is easy not managing their houses because they’ve to handle a lot of problems involving money. However, this is not the case with property managers because tenants understand they have a policy that needs to be followed.
They help you with taxes
Being in real estate for long, they can understand laws about taxes and hence they can help you understand the deductions you can claim if you don’t know. They can also help you organize necessary forms and documents needed to claim the deductions.
Lower maintenance and repair costs
When you hire a management company, you gain access to their contractors who maintain and repair houses at an affordable price. This could result in significant saving compared to hiring a handyman yourself to do maintenance and repairs. On the other hand, management companies have a policy of inspecting the house before a tenant relocates to make sure that everything is okay, this lowers repair and maintenance costs.
Increase the value of your property
With preventive maintenance practices on your property, a repair issue is dealt on before it becomes a more costly problem. This tends to increase the value of your property because it remains as new with few or no repair needed over a long time. A management company can also offer you suggestions about upgrade and modifications needed to increase the rent and insurance too.
Personal benefits of property managers to property owners
- Reduce stress – hiring a manager reduces problems you could have faced if you were managing it on your own. You will not have to chase down rent, evict tenants, deal with paperwork, screen tenants, etc.
- You get a lot of free time – with all the activities needed to be taken care of in management, you will have a busy schedule if you do it yourself. However, with a manager, you can easily find time to do other activities which you couldn’t have
- You have freedom of investment – with a good property management company, you can invest wherever you want to even if you are far because you don’t have to manage the property yourself. You can therefore invest or do other businesses without worrying about your property
It is evident that a management company is very beneficial to property owners. However, you can only reap these benefits if you choose a competent company which is trustworthy and professional in its undertakings. You should, therefore, take your time before choosing a management company because a poor company could be a headache to deal with.