Do you have a rental property? Maybe you are planning to invest in one?
Landlords face a lot of tasks and duties daily. Many investors new to rental properties are caught by surprise when they learn how much stress and effort is involved in self-managing. Let alone managing two or more rental units.
Self-managing means facing considerable challenges. You have to put in many hours of work while always being responsive to any emergency repair or maintenance requests.
Here are more examples of issues that landlords have to solve:
- High tenant turnover rate
- Missed or late rent payments
- Lease agreement violations
- Complaints about the rental unit or neighbors
The number one solution to a growing pile of tasks is working together with a property management company. When you partner with a professional company, you can expect the following benefits:
- Your interests as a property owner are always protected
- You'll have more time and less stress every day
- Your rental property will receive full upkeep and care it needs
Now we are going to take a closer look at the benefits of working with a property management company:
1: Tenant Screening
Finding quality tenants is a challenge for landlords. The only solid method for getting the best renters is comprehensive tenant screening. This is a task that professional property managers excel at.
Proper screening decreases the risk of property damage, late or missing payments, and illegal activity on the premises. Efficient tenant screening covers the following areas:
Credit check/Credit history
- Eviction history
- Employment status
- Criminal records
- References and interviews
2: Repairs & Maintenance
Regular upkeep is crucial to preserve or even grow the value of your rental investment. Property management companies will take care of all the daily, monthly, or annual repair and maintenance needs.
Hiring an established property management firm means that you are likely to benefit from their extensive network of contacts. Relationships that have been built over the years with vendors and contractors typically result in great offers and discounts due to a high volume of work.
They can also ensure that the end of tenancy cleaning is done to your standard.
3: Marketing & Advertising
Filling your vacant rental units is necessary to create healthy cash flow. Empty rental slots result in expenses without providing any income to balance out the associated costs.
Working with a property management company means that your marketing game will be covered. Most companies mix various marketing strategies and methods to reach the right target audiences for your rental property.
4: Rent Collection
Rent collection seems like a breeze only to people who haven't dealt with these tasks themselves. In reality, rent collection may require quite a lot of effort. Misunderstandings and late payments are likely to occur even with quality tenants in your rental units.
Professional property management companies offer a wide variety of payment methods for your tenants. Most skilled firms have created online payment portals that reduce issues and make rent payments more convenient for renters.
5: Financial Reporting
As a rental property owner, you need to know how your units are doing financially. Property management companies may take care of running your rental investments to ensure profitability, but investor's oversight still retains its full relevance.
You should expect to gain access to the following financial documentation:
- Accounts Payable Report
- General Income and Expense Statement
- Balance Sheet
- General Ledger
Nowadays many property management companies have gone online with their clients' financial statements. This approach enables 24/7 access to all the key financials of your real estate investment.
6: Lease Agreements
When you partner with a professional company, the property manager will ensure that all your lease agreements are solid. The people responsible for your rental business will include the basic clauses, including rent, security deposits, and termination.
In a Nutshell: Why Work with a Property Management Company
Property management companies provide excellent value for landlords who lack time or experience to self-manage their properties. Since many landlords have multiple rental units, hiring a professional property manager becomes an obvious choice.
Here are the major benefits of working with a property management firm:
- Your rental property receives necessary upkeep and repairs at all times
- Comprehensive screening procedures ensure you'll have only quality tenants
- Efficient and convenient rent collection methods reduce payment issues
- Your lease agreements include all the necessary clauses and comply with legal regulations
- Easy access to detailed financial reporting regarding your rentals
- Your tenant turnover rate is reduced through the use of effective marketing campaigns