Choosing whether or not to hire a property management company is probably one of the biggest decisions you’ll have to make as a real estate investor. That’s because hiring a property manager comes with a lot of perks as well as downsides.
However, if you compare the upsides against the downsides, it’s easy to see why hiring is better than self-management. A good management company is always worth its keep. They’ll not only manage your property in the best way possible but also help you to grow your investment.
So, why should you work with a property manager? What’s in it for you? Well, after years of working with property managers, Upkeep Media Inc. lists seven perks you get to enjoy when working with a management company:
1. They give you freedom and peace of mind.
One of the most important benefits of hiring a property management company is the fact that you won’t have to worry about:
- Your property’s state of affairs
- Late night tenant emergencies
- Terrible tenants and cat-and-mouse rent collection games
- Legal compliance
- Evictions and tenant screening
- Repair and maintenance
- Tenant conflict resolutions and so on
Basically, property managers often assume all your responsibilities; leaving you with nothing but time and freedom to do other important things. It’s a win-win for you because your property will still be under the management of a professional and skilled company.
2. They know how to run effective and fast advertising/marketing campaigns.
A reputable management company knows how to find the right kind of tenant for your property easily. They have ample experience when it comes to devising timely and efficient marketing strategies.
Moreover, they have a lot of resources at their disposal and an extensive network that makes filling vacancies fast and easy.
3. They get you high-quality and responsible tenants.
The key to running a successful rental property business is having good tenants. And the only way to get good tenants is if you know what to do and how to do it?
The best part about working with a real estate management company is that you won’t have to worry about this. They have the tools, skills, and manpower needed to do proper tenant screening and background checks on applicants; within a short time.
Obviously, a manager will be more inclined to find quality tenants since they’ll be the ones dealing with tenants and tenant-related issues. Therefore, your property will not only get worthy renters but also vacancies will fill up fast.
4. They find you reliable and long-term tenants.
A good property management company knows that turnovers are often bad for business and very costly. Therefore, it’s their duty to ensure that turnover rates are low at all times.
So, how do these companies achieve this? Well, they often:
- Find good tenants who want to rent for a long time.
- Properly vet and do background checks on each tenant to be sure that they won’t be a problem in the future.
- Treat tenants with high regard, respect, and tend to their needs promptly.
- Make sure that the property is always in good condition, safe, and healthy for the tenants.
When a manager does all this, they increase the chances of tenants staying longer. Hence, lowering turnover rates and keeping you and your tenants happy at all times.
5. They simplify the rent collection process for you.
Rent collection can be messy, tiresome, and time-consuming; especially when dealing with difficult tenants. Luckily, that’s one problem that you can solve by hiring a property manager.
Generally, management companies have strict rent collection policies. They make it harder for tenants to default or pay their rent late. That means that hiring a manager can guarantee you a stress-free rent collection process and a steady flow of income.
In fact, most managers often add convenience into the mix by depositing the rent collected straight into your bank account; leaving you to enjoy the fruits of your investment without the hassles of rental management.
6. They lower your operating expenses so that you can enjoy more of your profits.
How? Good question. Property management companies often come with experience, knowledge, and partnerships that can be beneficial to you in many ways. They’ll know what to do to minimize your operational expenses without affecting their quality of service.
They achieve this by:
- Doing preventative maintenance. – Every good manager knows that being proactive is the easiest way to mitigate costly repairs. Therefore, they will fix small issues on your property before they become adverse.
- Getting responsible tenants. – To lower maintenance costs, tenants also have to assume a level of responsibility. If they take good care of your property, the chances of damages and breakages reduce. Hence, lower maintenance costs and more profits for you.
- Partnering with local vendors and service providers. – These partnerships often result in lower costs for high-quality products and services. That means even bigger savings on maintenance and repair costs; in other words, bigger earnings for you. Sounds good, right?
7. They help to minimize your rental’s legal problems.
Let’s face it. Legal problems are always time-consuming and very costly. And if your property is in a tenant-friendly state, you’ll have a lot of legal landmines to jump over in order to avoid lawsuits.
From tenant screening down to evictions, everything has to be done according to the laws and regulations of your state. And it’s understandable that learning rental property law can be a bit overwhelming. But you don’t have to if you have a property manager on your payroll.
Generally, you can be sued for a number of reasons including:
- Biased tenant screening
- Unlawful evictions
- Failing to honor your lease obligations
- Bad safety and health conditions in your property
- Unlawful inspections
- Failing to issue security deposits back
- Bad rent collection practices
- Premature lease termination and so on
Competent property managers know all these and often work to ensure everything in your property is done according to local, state, and federal housing laws and regulations. The lower your legal issues are, the more profits you’ll enjoy.
In summary, working with a property management company might be the best decision you’ll ever make regarding your rental. However, you need to be cautious when looking for a manager because not all of them guarantee great results.
Always look for the best property manager you can find. Make sure you’ve done enough research to ascertain their ability to take care of your rental property and help you grow your investment. Once you find the right one, you’ll be able to rest easy knowing that your property is in capable hands.
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