Owning a rental property is one of the best investments you can make, but there are some challenges you will have to deal with in the process. Having properties to rent will mean dealing with different types of people, from tenants to tradespeople, and how you handle them will play a big role on how much stress you can go through and the amount of work you need to put in. There are some people who prefer to do it on their own, but most of them end up hiring property management companies once they get a taste of how hard it is to manage a property.
When you try to it on your own, you will find yourself spending a lot of your time dealing with one issue or another. There will always be something coming up, and you can find yourself focusing too much on it, and less on other things that matter. There is no need to go through this, just find a good property management company and let them do everything for you. You will still be in total control of your property, but you won’t have to deal with your tenants and tradespeople. Below are some of the benefits you can expect to get when you hire a property management company.
The tenant screening process can be very complex, and you can end up choosing a bad tenant, especially when you don’t have experience in the real estate industry. Having a bad tenant will result in a lot of stress because there are some that will refuse to leave the property. A good property management company is able to screen the tenants and they will choose tenants who are able to pay their rent on time, minimize damage on the property, rent in the long-term, and cause fewer problems.
A property management company that has been around for a long time have been able to go through thousands of applications and know what to look out for. They will be able to identify any red flags on the applications. Hiring a property management company will help you in avoiding rental scams that are usually directed at property owners. The company will also ensure you don’t have to deal with discrimination lawsuits, which can be very time-consuming.
Less legal problems
Any landlord knows how one tenant can cause a lot of legal and financial headaches. A property management company has experience and knowledge in this area and they can help in protecting you from potential vulnerabilities and lawsuits. The cost of dealing with these legal problems is very high, and hiring an experienced company to help you is the best way of avoiding them.
Shorter periods of vacancy
Having a property vacant for too long results in lower profits and even losses. A property management company knows the right steps to take to avoid long vacancy periods. Some of the things they can do include;
- Preparing the property for rent – they will know the right improvements that need to be made so as to leave the property looking great, and maximize the revenue.
- Determining the optimal rent rate – setting the rent too high can leave the property vacant because it takes longer to find tenants willing to pay that amount of rent. Setting it too low means you are losing money every month. This makes it important to determine a price that will not be too low or too high. Doing this will require knowledge on the local real estate market and how similar units are charging.
- Marketing the property effectively – Skilled property managers have over the years written a lot of ads and will know how to advertise. They usually manage many properties, and most of them get cheaper rates for ads both offline and online. Their experience is sales will be very important.
If you rent out your property to tenants living for a short period of time, then you have to deal with issues such as lost rent, changing the locks, cleaning the property, replacing the carpets, repainting the walls, making small repairs, and also screening new tenants all over again. This will prove to be very expensive, and this is why people prefer keeping their tenants happy.
A good property management company usually has a client retention policy that they have tested. These programs are important and they need a consistent and systematic approach, which is where a property management company excels in. Happy tenants tend to rent in the long term that the ones who are not happy.
Efficient rent collection
One of the most important aspects of property management is collecting rent and late fees. To make sure you have consistent and reliable cash flow, the rent has to be collected on time, and tenants must understand that. Hiring a property management company puts a buffer between the tenants and the landlord, meaning they managers become the bad cop who has to collect the rent, listen to the excuses of the tenants, and evict them if need be. If you become too permissive, the tenants will end up walking all over you.
The eviction process is an important thing that the property management company is going to handle. There are some rules that need to be followed when doing it. Failing to follow them can lead to a lot of problems.
Lower repair and maintenance cost
Your tenants are going to happy if they get good maintenance on the property. When you hire a property manager, you will be able to access the network of licensed, insured and bonded contractors that most of them have. The property management company is also able to get discounts because of the number of managed properties they have.
Property managers will be able to notice a problem with your property and fix it before it becomes a big problem. This will end up saving you a lot of money because most of the problems will become expensive to repairs with time. Hiring a property management company is the best option for you.