If you’re a landlord, then you might wonder if it’s in your company’s best interest to work with a property management company.
Some are unsure if it’s the right choice for their situation. However, for some, the prospect of getting some assistance from a property management company is quite appealing.
That’s because a rental company has its own unique set of challenges, aside from the responsibility of owning the property.
Now, before you ultimately come up with a decision, here are the top reasons landlords should hire a property management company:
Helps with Market Research
Instead of spending long hours figuring how much landlords charge for similar properties so that you can base it on your rent price, an excellent property management company will set out thorough market research to be able to set a rental price for your property.
Property managers have insider knowledge with the current local prices. That way, it’s easier to determine what’s the best rental prices that you can set for your property.
That way, you’ll be able to achieve the ideal balance between maximizing your monthly revenues and minimizing the monthly vacancy rate.
Screen Potential Tenants
Although it’s possible to get a bad tenant out of your property as soon as they settle in, it can be a huge hassle on your part. This can even make you wonder why you ever accepted them in the first place.
A thorough screening process of tenants ensures that they:
- Rent for extended periods
- Pay on time
- Minimize any wear and tear of the property
- Make lesser problems.
The best property management companies are experts in finding the ideal tenants for your property. Chances are, they’ve already seen thousands of applications, know how to verify a tenant’s information, then analyze the data for any kind of warning signs.
They’ll be the ones to take care of all the details, screening the tenants from all criminal background, and doing tight security checks.
They will also be the ones to run the credit report, verify the tenant’s employment, and then collect previous landlord references. That way, you’ll better protect yourself from rental scams, or prevent lawsuits because of an inconsistent screening process.
Experience does take time, and working with a property management property will avoid bad tenants, lawsuits, and scams from happening.
Better Tenant Retention
While it’s easy to experience the effects of lost rent, other equally serious problems can result in a high tenant turnover rate.
After all, the turn over process involves cleaning, painting the walls, and making necessary repairs. Not to mention, the effort that is required in marketing, screening, and settling in a brand new tenant.
All of these are time-consuming and expensive, and it can be prevented if you keep your tenants happy and well-cared for.
According to Pedersens, an award-winning property management company, “An excellent property management firm has tenant retention policies that are already time-tested. That ensures that your tenant stays longer in your property. These programs also need a consistent and systematic approach.”
Manages Tenants
Aside from finding the right tenants for you, a good property management company will be the one that will handle all the aspects within the relationship of landlord and tenant.
The property manager will be the one responsible for any kind of maintenance, whether it’s routine or an emergency. They’ll also be the ones doing a regular inspection, and even manage situations where conflict resolution is needed.
Advertises and Markets Your Property
Because they already have extensive experience, a property manager will know how they could market your property properly, and how they can come with advertising materials and strategies that are compelling to the target market.
This will be a significant advantage on your part because your property will be quickly filled and you can potentially avoid long vacancies.
Tighter Rent Collection Process
The way you handle your rent collection and late payments will determine whether you’ll succeed or fail as a landlord.
You have to collect rent on time every month. That way, you’ll have a more consistent cash-flow. Tenants also need to know that this isn’t negotiable.
By hiring a property management company, you’re placing a buffer between you and the tenant. That way, you won’t be the one who will listen to excuses why they couldn’t pay rent on time, chase down rent money, or evict the individuals that live on your property.
Because if you let them, then you’ll allow your tenants to walk over you. They should know how to follow with every part of the deal, or else, suffer the consequences.
Property management companies have a significant advantage because, unlike the owner; they’re just doing what is expected of them, to put those lease terms into action.
When it comes to evictions, there are strict laws in the whole eviction process. So if you’re doing it wrong, this could turn out to be a major disaster.
A property management firm knows the law and goes through a process to get the best possible outcome despite the circumstances. Never having had to handle an entire eviction again is one of the compelling reasons you need to work with one.
Handle Maintenance Issues
Excellent maintenance and repairs keep your tenants happy, helping them preserve the value of your investment and is a crucial aspect of being a successful landlord.
When you hire a management firm, you gain access not only to their in-house maintenance staff but also to an array of licensed and insured contractors, which is excellent for great pricing and delivering quality work.
Over time, this translates to a significant amount of savings on your part, rather than doing your own research online, or browsing through yellow pages, and hiring contractors by yourself. Not only will they give you large discounts on the work but they also personally know the contractors.
They also understand these maintenance issues, so they’re capable of supervising the work intelligently. They will be the ones responsible for overseeing necessary maintenance projects. As a result, you can get the best results at the best price.
Does the Taxes and the Bookkeeping
When you manage properties on your own, you’re the one who’s responsible for keeping track of everything from the rent, expenses, loss, profits and so on.
A good property management company will be the one responsible for that and will give you a year-end report that contains all your profits, losses, tax, and accounting information.
Keep in mind that it isn’t easy calculating the taxes for your rental property. On the other hand, a property manager can do it for you and can even give you an excellent tax advantage.
The Bottomline
If you found an ideal tenant, then self-management is easy. But when more complex and difficult situations arise, then that’s when you might appreciate property management.
The reason you should work with a property management firm isn’t that you need to cash in a check each month. Instead, they’re there to help handle problems, so that you can spend more time on things that matter.
It’s also easier to watch your rental income grow with very little effort on your end. This is possible if you work with a management company that’s credible, competent, and is a great fit for your property.
