Running a rental operation is a very lucrative investment but at the same time, managing such an undertaking can involve significant work and effort.
For most new landlords, the best way to ensure that their property is well looked after is by hiring a property management company. Property managers are trained to deal with the day-to-day issues of a rental property and are also skilled at dealing with unexpected queries and issues.
Following are some key benefits of hiring a property management company:
Quality Tenants: Finding the right tenant for your property can be a very time-consuming process. If you end up making a wrong selection, it can also cost you a fortune. Property managers who have been in the game for quite some time, know exactly how to screen tenants and know all the red flags about applicants who could potentially be difficult tenants. By using stringent screening strategies, a property management company may do a much better job at select good-quality, long-term tenants who will pay their rent on time and will not abuse or damage your property.
Legal Knowledge: Many private owners who rent out their property often do not have the legal knowledge related to renting and landlord-tenant rights and obligations. There have many cases
where tenants have sued private landlords either due to incomplete or inaccurate paperwork or because the landlord failed to abide by certain regulations. Professional property managers know the legal aspects of renting far better than most people. They know the required paperwork and the local municipality laws for evictions, inspections, leasing, rent collection and termination of a lease. Property managers also save you time and hassles in case you ever have to go to civil court.
Effective Property Marketing & Advertising: Private landlords usually have very little idea how to effectively advertise to find tenants quickly in case their property is vacant. Most just expect that telling their friends to keep their property in mind in case somebody needs a place or posting their ads on Craigslist or the grocery store notice board will get them good applicants. In most cases, these tactics don’t work – at least not quickly – and this often leads to long vacancy times. Property management companies know where and how to place ads and which platforms would generate the right queries thus ensuring that your property does not remain vacant for long. Since property managers are continuously engaged in these activities, they also have good relationships with the press/advertises and can negotiate good advertising rates for both offline and online marketing.
Property Maintenance: Apart from collecting your rent, property managers also play a vital role in maintaining and improving the property. Typically speaking, property management companies have a keen eye and have been in the business for years therefore they can recommend certain improvements that would not only enhance the value of your property but also keep your tenants happy. In the rental industry, it is extremely important to deal with any property related issue promptly and efficiently. This includes management of the suites, the lobby area, the outdoor space, the security system, electricity, plumbing, parking and any other issues that may come up day-in, day-out.
Showings: If you are a private landlord, sometimes it is difficult to be physically present on the property to show your premises to prospective tenants. When you hire a property management company, you do not have to stress over scheduling appointments and making yourself available at a certain time. The property manager will take care of it and will ensure you don’t miss out on any prospective tenants.
Effective Rent Collection: When you are a private landlord, tenants may make late rental payments or ask for extensions etc. Property management professionals usually set strict rules and regulations about rent collection. Like any other business, they understand that a rental operation is also one and has to be run efficiently. This does not mean they will hassle your tenants to pay-up but it does mean that they will be able to establish a mode of operation and a system of rent collection that would be understood by all tenants. Even tenants realize that having a property manager can make their lives easy as well in case of any unexpected repairs, complaints etc.
Evictions: In almost every municipality, there are strict eviction rules and if you do know these regulations, chances are that you will lose both money and time. Some tenants can prove to be difficult and despite all your efforts, they would still remain problematic. The property management company is your best choice in such scenarios. Let them deal with such issues and if need be, let them evict the tenants if there is no other option. These are professionals who know the rules of eviction and can do it without any mistakes or errors.
A property management company can be fairly effective if you run a rental operation. They are knowledgeable, prompt and efficient – elements that can really make your rental business a successful one.