Seasoned real estate investors can tell you why it’s important to use a property management company – it’s worth the investor’s weight in gold. A reliable property manager is able to add remarkable value to your investment. Here are some of the ways a competent property management company can help you.
Brings you Quality Tenants
You can think of the property manager’s tenant screening job as the drawbridge around the castle – it serves as the access point to allow visitors who are welcome to enter the castle. A property manager tries to weed out the bad tenants from the pool of good tenants. It is possible to find a bad tenant in your home after they get in, but it brings a real hassle. Dealing with bad tenants can be a nightmare not for you as the property owner but also for the other tenants and the neighborhood. It’s better not to accept them in the first place.
A property manager does thorough screening to ensure only reliable tenants come in. These are tenants who:
- Rent for a longer duration
- Make rent payments on time
- Don’t significant wear and tear on your unit
- Cause fewer problems in general
A property management company receives thousands of tenant applications and knows how to check the information and facts about the candidates. The company can analyze the information and see any warning signs of a bad tenant. Allowing a real estate management company to screen the tenants protects you from any potential rental scams or even any lawsuits that may arise due to inconsistencies in the screening process.
A qualified property manager understands these lawsuits and can help you avoid any possible conflicts associated with the screening process. Even a single lawsuit is able to save you money that you can use toward paying the property management fees while at the same time sparing you time and the anguish of dealing with the legal suits.
Allows Shorter Vacancy Cycles
A property manager helps you handle critical tasks that influence the duration it takes to fill your property vacancies.
- They help improve and prepare your property for rent – offering suggestions on facelifts and improvements you should make on the property to maximize revenue
- Determines the best rent rate – one that’s not too high to chase away prospective tenants or too low such that you lose potential rent income from the unit.
- Market your property effectively – if you don’t let people know about vacancies in your property, they will never make applications. Your units may remain without tenants for a long time meaning you are losing potential rental income you could have earned. Besides, the property manager negotiates for cheaper advertising rates – print or digital – ensuring you are not overspending on marketing the property.
Allows better Tenant Retention
A high tenant turnover rate can contribute to lost rent, but there is a hidden cost you may not realize. You will need to clean, change locks, paint walls, and perhaps install a new carpet after a tenant leaves as you prepare for a new one. Coupled with the small repairs you do, it can cost you more if you are going to do it every now and then because tenants are leaving your unit at a higher rate.
A lost tenant also means more money spent to get a new one – for example, money spent on marketing, screening, showing the units to potential tenants and settling in the new tenants. It is not only a time-consuming process but also a costly one. You want to have a good property management company that knows how to retain tenants – keeps them happy to ensure lengthy stays.
Strict Rent Collection Process
You don’t want to make tenants feel that they can negotiate the rent payment. To ensure consistent cash-flow, you want to have an effective rent payment policy that allows payment to be made once per month. This rule should apply indiscriminately to all tenants. A reliable property manager can mean the difference between having late payments and having timely rent payments. The manager takes the role of the “bad guy” who never listens to excuses and relentlessly chases down rent or even orders eviction when necessary.
Your property manager, by enforcing the lease terms, is only doing their job the right way. When it comes to evicting tenants, you need to realize there are strict laws to follow. A property management company is able to avoid doing it wrong as it can lead to costly lawsuits.
Assists with Taxes
Having a property management company by your side helps you with the claims process for deductions. It also helps organize the forms and documentation required to make the claims. Keep in mind that the fees for the property management are also deductible.
Reduced Maintenance and Repair Costs
A property management company will ensure that you keep your property properly maintained. If there are maintenance tasks, the company has its in-house staff who does the job. And when it comes to hiring contractors, they have a network of licensed and insured contractors who can offer good prices for the maintenance and repair work. You will be saving money while also ensuring that the tenants don’t contribute to significant wear and tear or damage to your property.
Increased Value of your Investment
Often, you will need preventive maintenance of your property. However, this cannot be achieved if there are no systems in place. A property management firm will be able to have a maintenance check program. The maintenance program allows them to catch repair and maintenance issues in advance and deal with them promptly to avert increased expenses that may come later on due to delays in identifying and resolving repair issues. The property management company can also bring in suggestions on modifications and upgrades that can see you increase your rent charges and earn you more income.
Apart from these benefits, a landlord or property owner who seeks the services of a property management company is able to have more freedom and less stress. They free up their time and focus on other things while their investment continues to earn them good money.
Hire a Property Management Company Today!
While there are many benefits that come with hiring a property management firm, you can only earn them if you have a competent, trustworthy company that is a good fit for your investment. At myHomeSpot.com, we have a team committed to offering you the best customer service while boosting efficiencies for property owners. We strive to improve the living experiences of your residents. Visit us at https://myhomespot.com to discuss your rental property management needs and what we can do for you.
225 N Pace Blvd
Pensacola FL 32505