Owning a property to rent is an excellent source of additional income and is one of the best and safest long-term investments. But it also comes with quite a few commitments, such as screening for tenants, collecting payments, repairs and maintenance, etc.
From time to time, problems can arise, complicating your life and stressing you out.
If you want extra money from renting your property and don’t want to worry about all these matters, maybe you should consider a property management company handling most of the tiresome tasks.
So, what are all the benefits of opting for a property management company?
Choosing Reliable Tenants
A bad tenant is any landlord’s greatest nightmare, as the consequences can be harsh. One of the most significant problems that may occur is making them leave your property, as it can be pretty troublesome in certain conditions.
Tenant screening is always a complex process and is even more so if you lack sufficient experience in the matter.
Property management companies are usually well versed when it comes to choosing tenants. Being in the business for a long time, they have developed reliable screening processes that help them select a reliable tenant, who will:
- Rent for long-term,
- Pay their rent on time,
- Cause fewer problems,
- Take care of the property.
Having seen thousands of tenant applications, companies such as SCK property management company will quickly dig into facts about the tenant candidates and identify any potential red flags, narrowing your selection down. In addition to avoiding bad tenants, you also don’t have to worry about discrimination lawsuits or potential rental scams.
The Point of Contact for Tenant Concerns
Choosing the right fit for the property is not the only tenant-related task that a property management company can take over for you. When renting out a property, you will have to deal with some repair and maintenance jobs and it won’t always be convenient or even manageable. If your property is in another town, let alone state, and something breaks, you probably don’t want to drive over to the unit and check it out yourself. Or, your tenant might have a complaint that they need help solving.
A property manager will be there as a contact point for all such issues at all-day hours, taking necessary actions to solve them.
Reducing Renter Turnover
Great property management firms know how to keep their tenants satisfied. They are available and responsive when the tenants need them, and they solve problems when they arise. And when renters are happy, they are less likely to move to another place and more ready to accept the rent increase when it’s reasonable.
Avoiding Legal Problems
If you don’t feel very comfortable handling things like evictions, potential lawsuits, handling rent and security deposits, signing and terminating leases, you may need property management company expertise.
Property managers know all the relevant rental laws, which can help you avoid possible lawsuits and other vulnerabilities. Given that a single wrong move can cause a great deal of financial and legal headaches, hiring a property management company will protect you from wasting your money, time and energy.
Marketing Your Property
Skilled property managers have written many ads during their careers. They are also experienced at taking high-quality photos and hosting open houses. They know precisely how and where to advertise to attract many candidates quickly. And since they manage many rentals, they can probably negotiate lower rates for online and offline ads. Furthermore, they have a good insight into the local real estate market and can help you set a competitive rent. Determining the optimal rent rate is crucial if you want to prevent your property from staying vacant for too long. And, as they are familiar with sales, a property manager will know when and how to close the deal.
Ensuring Your Rent Is Paid
Whether you will be a failure or a success as a landlord depends primarily on how you will handle rent collection and late payments. Receiving rent on time every month should not be negotiable, as it’s the only way to keep a steady cash flow.
A property management company will act as a buffer between you and the tenant. If the tenants are failing to pay on time, property managers will be the ones listening to excuses, chasing down rent, and, if and when necessary, evicting them.
Companies have a considerable advantage in such matters – the tenants understand that they are only doing their job and are obligated to execute the lease terms, unlike the landlords.
Saving Money on Repair and Maintenance
Tenants are happy, and your rental value is protected if you provide your property with good maintenance and timely repairs.
By hiring a property manager, you will gain access to professional maintenance and a network of trustworthy contractors available whenever the problem arises. Because of the volume of the properties they manage, a property management company will also get you discounts and lower prices. Furthermore, they can organise regular inspections of the rental and spot potential issues even before problems occur, minimising your emergency bills.
If you’re buying real estate with the intention to rent it, you should consider hiring a professional to manage it from the start. With a property management company doing all the hard work for you, you don’t need to worry about marketing your rentals, screening your tenants, handling rent collection, repairs or evictions. In addition, a competent property management company will bring its experience and know-how to your property, granting you peace of mind as you will know that your investment is in safe hands.