Trying to figure out whether to handle your property on your own or operate with a property management company? If so, then you are in the perfect place! By the end of this article, you’ll have all the information right on your fingertips.
First and foremost, there is a great deal of work that goes into managing a rental property. Among other things, you’ll need to:
- Know the law. Specifically, the federal, state, and local landlord-tenant law.
- Regularly maintain and repair the rental property. Bear in mind, as a landlord, the law requires you to keep the property in safe and habitable conditions.
- Enforce the terms of the lease. A lease is a legally binding document between you and your tenant. In addition to carefully documenting it for your protection, you must also enforce it.
- Collect rent in a timely fashion. Rent is center to the rental business. To run a successful business, its set needs to be timely and reliable.
- Find the right tenant. The right tenant can make your life a dream, but a bad tenant can cause you stress, aggravation, and money.
So, are you up to the task? Well if you are not, here is the great news — you can still hire a good property manager to do it for you. A good property manager will put your mind at ease, free up your time, and add value to your investment.
Let’s look at six benefits of working with a professional property management company:
A high-quality tenant is crucial to reducing prices over the long run. It is one with a great credit score, good rental history, a clean rental record, and a stable and higher level of income.
A tenant with such qualities is each landlord’s dream. But they can be very elusive without a proper screening procedure.
In fact, without a solid tenant screening procedure in place, you might just end up getting the exact opposite. That is one who you may end up having to evict due to their bad behaviors.
Property managers have been in the business for a long period of time. They have reliable and tried-and-tested processes that help them weed out the bad from the good. This helps them find tenants that:
- Causes less wear and tear on the property
- Pay rent on time
- Rent long-term
- Cause fewer problems
Shorter periods of vacancies
It goes without saying that vacant rental property is every landlord’s worst nightmare. It essentially means no income at the end of the month.
By hiring a professional property manager, you can help reduce the amount of time your property sits vacant. This is because property managers have demonstrated and tested tools and strategies that can help market your property to the right tenant pool.
Less Legal Problems
Being a landlord is a complicated endeavor. You may unintentionally find yourself making mistakes such as:
- Disregarding tenant’s right to privacy. Tenants have a right to the quiet enjoyment of their homes. To enter the unit, you must provide them with adequate notice, usually 24 hours.
- Refusing to make repairs. As a landlord, you have an obligation to ensure that your property is habitable.
- Failure to provide a safe environment. You have a duty to ensure your tenant has a safe living environment.
- Employing illegal provisions in a rental agreement. You can find yourself in a legal hot soup if you place discriminatory conditions in your rental agreement.
- Failure to make disclosures to potential tenants. Different states have different requirements in regards to what landlords must disclosure to their tenants.
Asking discriminatory questions. Did you know that it’s illegal to ask certain questions when interviewing your tenants? For example, asking your tenant:
- Do you go to church in this neighborhood?
- Where do your kids go to school?
- Are you pregnant? I don’t want a baby disturbing the other tenants.
- Where were your parents born?
You can avoid all these issues and more by selecting the right person. A good property manager is well-versed with the federal, state, and local laws guiding the landlord-tenant relationship.
Long-term tenants are great for cash flow. They assist guarantee income at the end of the month.
Short-term tenants, on the other hand, mean a collection of issues. For starters, it means lost rent. It also means high maintenance costs, as you’ll have to do things like clean the property, replace carpets, and repaint the walls every time a turnover happens.
Hiring a professional is the only way to increase your chances of landing a high-quality, long-term tenant. Remember, however, not all property managers are created equal. As such, when interviewing them, make sure you check their tenant retention policy.
Improved Property Value
Regular property repair and maintenance is important to improving the value of your property. Superior property managers usually conduct four inspections per lease period. These are:
- When tenants first move into the property. This helps document the condition of the property.
- During a drive-by. This helps check for frequent lease violations such as subletting or unauthorized pets.
- When seasons change. Every season calls for certain maintenance tasks. In winter, for example, winterizing pipes is important.
- When tenants finally move out. Many leases require that tenants return the properties in much the same way they found them. The move-in inspection report acts as a checklist. The tenant then becomes liable for any excessive property damage discovered.
Pays Rent On Time Consistently
You probably know that reliability and consistency in rent collection is key to the achievement of a rental business. As such, you need to make certain you have the right systems to help make this possible.
A professional property manager can also help you with this. They will help you put the ideal rent rules on your lease and help enforce them to the letter.
In summary, by hiring a professional property manager, you can add great value to your rental property investments. Just remember to do your homework first, as not all property managers are created equal.