If you own investment properties, you might’ve heard about property management companies. What are they about? Is it a sound decision to hire one? When is the right time to do it? We’ll answer all these questions in this article.
A property management company acts as a middleman between a tenant (or potential tenant) and the landlord. Property managers are responsible for setting, adjusting and collecting the rent.
They’re also the first point of contact for prospective tenants, and they process all applications.
Property managers screen applicants, check background information and have the power to approve or deny rental applications. They’re also your property’s caretakers.
They maintain the rental space, repair any damages and see to it that everything is clean and in perfect working condition. These are just some of the duties and responsibilities of a property management company.
Why Hire a Property Management Company?
A landlord might own several properties and have no time to deal with the details of his property business. He might also like to free up his time and focus more on his other investments.
Hiring a property management company alleviates these worries since it’s your property manager’s duty to care of your tenants and rental property.
A property manager ensures regular inspections for preventive maintenance. They also check for damages and take care of them immediately as well as see to it that the interior and exterior of your property are clean and attractive to tenants.
A property management company handles marketing for your rental unit and makes sure it has well-placed ads. A property manager studies market trends, assesses the value of your property and ensures it remains competitive. They analyze the key features and promote the benefits of choosing your property over others for long-term rental.
Finding Good Tenants
A property management company gathers a pool of high-quality tenants to do business with. This is only one of the many benefits of professional property management. They accept applications, evaluate the applicants’ financial capabilities, cross-check references and look at credit histories. A property manager ultimately chooses the best candidate to welcome to your property.
Handling Conflicts/ Tenant Issues
A property management company resolves your tenants’ issues. Property managers also act as a referee or an intermediary between the landlord and tenant. They smooth out disagreements and find the best resolutions for disputes—even between tenants.
Offering Professional Expertise
A property management company has accumulated a good dose of knowledge and experience in the property rental industry. Property managers share their best practices, and landlords can learn about the proper procedures for the management of tenants and properties.
Rent Setting, Rent Collection and Rent Adjustment
A property management company sets the right price for your property. They also adjust the rent when market conditions demand it. If the market is in a downturn, a property manager can lower rent, and they can raise it when the market is doing well. They put efficient systems in place for effective rent collection that is convenient for the tenants in your property.
A property management company takes care of financial matters, including rent payments. Property managers work with your budget and pay off utilities to ensure your business is running smoothly. They record maintenance expenses and organize all the financial receipts. They can create financial reports for transparent accounting to track income, profit and expenses.
A property management company ensures you adhere to all laws and regulations to avoid lawsuits. Property managers make sure that you’re protected as a landlord and that evictions happen legally.
They’re also up-to-date with new laws and policies governing rental properties in the state where your properties are located.
The Right Time to Hire a Property Management Company
- When you own more properties, it can be hard to monitor and keep track of them. It’s best to hire a property management company to save time and expenses. Imagine traveling from one property to another to check on the tenants and properties.
- If you live abroad or far away from your rental unit, it doesn’t make sense to manage it on your own. Having a property management company deal with emergencies and maintenance will take the burden off your shoulders. You can contact them for property updates instead of spending all your time traveling back and forth.
- When hands-on management feels burdensome, and attending to details is tedious, it’s time to hire a property management company. It might look simple to manage a rental property at first, but there are day-to-day management decisions and concerns that require constant attention.
- If you have the budget to pay for a property management company, consider hiring one. Delegating the management tasks can earn you the time freedom to attend to other areas of your life. You can go on leisure trips without constantly being interrupted by the dynamic nature of managing a rental property unit.
- When you don’t have the time, it’s best to hire a property management company. The rental business can be time-consuming, especially when it comes to marketing and looking for quality tenants. You have to use a wide network of resources to fill vacancies and find long-term tenants.
Using a property management company benefits a landlord because it means a professional handles the fine details of the rental business. You need to ask yourself what your priorities are.
A common landlord mistake is not keeping up to date with every aspect of managing your property. When you hire the right property management company, you can rest assured that your tenants’ and properties’ needs and taken care of.
If you don’t have sufficient time or live far from the property, it’s best to leave your rental investment in the expert hands of a property manager. You might even save money, in the long run, thanks to the company’s thorough assessment and maintenance of your property.