With a return in real estate prices, now is a great time to look at investment properties. However, rental properties can require a considerable investment of time, effort and money before they can become profitable. Buying a property with the intent to rent it out means locating and screening tenants, managing the property, keeping everything running, and more.
This reality is exacerbated for the investor if they live in another state.It is these challenges that prompt most property owners to hire a property management company. A property management company oversees all aspects of a property; from tenant acquisition to fixing the leaky faucet, allowing the investor to focus on their ROI. The following list outlines some of the core benefits of hiring a property management company:
- Screening and qualifying tenants
Finding suitable tenants is the most formidable task for an investor. With extensive screening processes in place, property managers can easily determine which applicants are suitable for long-term rental. The cost of eviction is high and is a lengthy process. Property managers are tasked with marketing the property, screening tenants and more.
- Rental Retention
Keeping tenants in your property is critical to keeping money in your wallet. When a tenant leaves, a time and money-consuming process of cleaning and restoring the property commences, all before the search for a new tenant can begin. Experienced property managers know how to keep good tenants in a property, and are quick to respond to service calls. If a tenant does leave, a property manager can quickly prepare the space avoiding any potential lulls in the process.
Maintenance is often a sore spot for tenants. However, experienced property managers are adept at addressing maintenance issues. Owning a property means being responsible for repairs of things that sometimes have a short shelf-life: windows, locks, appliances, etc. This requires an ongoing understanding of how to engineer systems, and which contractors are suitable for the job. Experienced property managers have a ready team available to deploy at a moment’s notice.
- Focus on Profits not Papers
Many property owners are afraid to hire a property manager because of the cost involved – not realizing they will actually make more money in the long term due to the increased care of the property. Property owners will get better tenants that stay longer and have less damage and repairs to deal with, and the property remains in great shape.
- Bureaucratic Red Tape
Taxes and legal documentation are as annoying as they are long. Property Managers can assist in deciphering the maze of regulations that beset any well-intentioned investor. Reporting documents consists of items such as leasing contracts, property documents, invoices, and more. Property managers can help investors understand which deductions they can claim, and provide clarity to what can be a confusing process.
- Quality Assurance
Property management is a great step in alleviating stress and assuring that quality management is delivered to tenants. Moreover, time is freed up and an investor can focus on their own obligations. An investor’s only concern should be their financial returns, not the minutiae of maintaining their property.
- HOA Property Management
Property management can extend to a condominium association as well. Collecting assessments and home owner’s association (HOA) fees is a great way to outsource tedious but necessary details to a third-party. Moreover, a competent property manager can also organize and help liaise between the association board and individual property owners, helping streamline financial processes and making community properties run more efficiently.