If you have owned a single rental property or many, you know that managing a rental can be financially rewarding. At the same time, you have also likely discovered that property management requires a large commitment of time and effort.
Hiring a professional property management company has several benefits for investors, especially those who own multiple properties. These benefits save a significant amount of time and money and make owning a rental property more rewarding. Plus, a good management company brings its experience to your property, giving you the peace of mind that comes with knowing your investment is in good hands.
You should consider hiring a property management company if:
- Personal Benefits
The less a landlord must deal with problem tenants, the less stress he or she will have. You will not have to deal with late-night emergencies, evictions, chasing down rent, damages, paperwork, having to find contractors, and other tedious and time-consuming tasks.
You can travel anywhere you want without having to worry about your tenants, their rents or their maintenance requests. Using a property management company allows landlords greater freedom.
- Time is money.
Having a professional property manager allows you to refocus your efforts on growing your business, including searching for new properties, arranging financing for renovations, or changing your business structure.
- Lower repair and maintenance costs
You can gain access to professional maintenance and a network of licensed, insured, and bonded contractors. These contractors are trustworthy and have been vetted for quality work and good pricing. Additionally, a property management company will also be able to get discounts on account of their great volume of managed properties.
- High-quality tenants
Tenant screening can be a complex process, and if you do not have sufficient experience in the real estate industry, you might end up choosing a bad tenant. Experienced property managers are experts at finding good tenants, and will take care of all the details, including the securing all criminal background and security checks, running credit reports, verifying employment, and collecting previous landlord references.
Good property management companies have a reliable and verified screening process that helps them select tenants who will:
- Rent long-term.
- Pay rent on time.
- Minimize the wear and tear of the property.
- Cause fewer problems.
Avoiding bad tenants, lawsuits, and scams is by far one of the main benefits that come with hiring a professional property manager.
- Increase and maintain the value of your rental property.
When you hire an experienced property manager, they will be able to make smart suggestions to maintain and increase the value of your property. An agency may also offer you valuable feedback and suggestions on upgrades and modifications that the tenants prefer.
- Less legal problems
High-quality property management company is armed with a lot of knowledge and they can protect you from potential lawsuits and vulnerabilities. Each state will have their own laws that can affect a landlord. Additionally, you also have the federal law.
- Shorter periods of vacancy
A property management firm can help shorten vacancy cycles, which cost a landlord money. Skilled property managers have written numerous ads throughout their career and know what to say and where to advertise to get many candidates quickly.
- Rent collection
When you hire a professional property manager, the landlord puts a buffer between themselves and tenants, allowing them to be the bad cop who must listen to tenants’ excuses, collect rent, and handle evictions if necessary. To ensure consistent and reliable cash flow, rent must be collected on time every month.