By hiring a professional property manager, you can add great value to your rental property investments, which is why many seasoned real estate investors agree that working with a good management company is best.
Benefits of hiring a professional property manager
A professional property management company that has been in business for a long time has seen thousands of tenant applications. This will help them more quickly research the facts about potential tenants and identify red flags. By letting a management company handle tenant screening, you are also avoiding rental scams targeting landlords.
Tenant selection can be a complex process, and if you don’t have enough experience in the real estate industry, you could end up choosing a bad tenant. The main problem with bad tenants is that it can be quite difficult to get them to leave your property.
Fewer legal problems
Experienced landlords are aware of the fact that a single bad tenant can cause a great deal of financial and legal headaches. A professional property management company is armed with a lot of knowledge and can protect you from potential lawsuits and vulnerabilities. If you avoid a lawsuit by hiring a specialist, the money you save will be more than enough to pay your property management company fees, and you will also avoid wasting your time and energy.
Shorter vacancy periods
A professional property manager will help you handle the following tasks that will prevent your properties from sitting vacant for long:
Prepare Properties for Rental: A property management company will know exactly what cosmetic improvements need to be made to the units to maximize your income.
Determine the optimal rental rate: If you set the rent too high, it can take too long to find tenants, too low, and you may be losing money every month. Determining the correct price is crucial, and doing so requires knowledge of the local property market, data on similar units, and access to professional rental rate tools.
Market Your Property Effectively: professional property managers have written numerous advertisements throughout their career and they know what to say and where to advertise to get lots of candidates quickly. Because they handle so many properties, they can probably negotiate cheaper rates for both online and offline listings. Additionally, they are familiar with sales and know how to close when they take calls from leads and take them to shows and work with home rental companies and agencies.
A good property manager will have a time-tested tenant retention policy. These programs are essential and require a systematic and consistent approach, which is where a high-quality property management company will shine. A happy tenant is more likely to rent long-term than one who is dissatisfied with the property or the owner.
More efficient rent
Managing rent collection and late fees is an extremely important aspect of property management. To ensure consistent and reliable cash flow, rent must be collected on time every month, and it is important that tenants understand this.
By hiring a professional property manager, the landlord puts a buffer between themselves and the tenants, allowing them to be the bad cop who has to listen to the tenants’ excuses, collect the rent, and handle evictions if necessary.
Lower Repair and Maintenance Costs
Tenants are always happy if you provide good maintenance, not to mention that doing so also preserves the value of their assets. By hiring a professional property manager, you gain access to professional maintenance and a network of licensed, insured, and tied contractors. These contractors are trustworthy and vetted for quality work and good prices. Additionally, a property management company will also be able to get discounts due to its large volume of managed properties.
Increase and maintain the value of your rental property.
By identifying and renovating property any maintenance problems early on, you avoid bigger and more costly problems. An experienced property manager will tell you that the key to maintaining and increasing the value of your property is preventive maintenance. This requires regular maintenance checks and inspections, a written maintenance schedule, and detailed documentation. An agency can also provide you with valuable comments and suggestions on updates and modifications that are preferred by tenants.
Less Stress: By hiring a specialist, you won’t have to deal with nighttime emergencies, evictions, rent chasing, damages, paperwork, finding contractors, and other tedious and time-consuming tasks.
More freedom: If you hire a professional property manager, you can travel anywhere you want without worrying about your tenants and regular inspections. You can live where you want and you can invest in other properties.
More free time: For a real estate investor, time is money, and it would be better to spend your time on other things than micromanaging a property. If you focus on asset management then you are working on growing your business, if you manage the properties yourself then you are working on it. Not to mention, you will also have more time to spend with your family and friends.