Property ownership can be a rewarding experience, solid investment and provide a sound revenue stream. However, it doesn’t come without certain trials and tribulations that are part of being a landlord. From maintenance expenses and upkeep to acquiring and managing tenants, owning property can be a drain on time and resources if not run correctly- that’s what a property management company does. These companies are paid by the property owner to take care of the nuts and bolts that are associated with ownership. A good property management company will take care of marketing the property, finding and screening applicants, and maintenance and repairs to the property as well as managing tenants, collecting payments, and issuing deposits and notices. Essentially, these companies do the grunt work for property owners so they can focus their energy elsewhere.
In addition to granting owners more time, property management companies provide a host of other solid benefits. They supply:
Higher Quality Tenants
One of the many jobs of a property manager is to find quality tenants to fill vacant properties. They thoroughly screen applicants by examining factors such as their rental history and credit score, calling their references, and even interviewing them to determine if they would be a good tenant. This process ensures that properties are filled with desirable tenants who will take care of the space, make their payments on time, and produce a steady income for the property owner. Management companies have vast experience sorting through applicants, and can spot warning signs and red flags easily.
Shorter Vacancy Cycles
The owner isn’t making a profit if their property isn’t occupied. In fact, unless they own the property outright, during times of vacancies owners typically have to make the mortgage payment out of their own pocket. When a property is occupied tenants’ rent can be put toward the mortgage payment or used as income. Property management companies take care of marketing and advertise properties to the appropriate audience and see that the vacancy is filled.
Better Tenant Retention
Tenant turnover requires additional time and money to clean, market and fill the space, all of which is costly for owners. To avoid turnovers and vacancies retaining quality tenants is imperative. Property management companies serve as a point of contact for tenants and are immediately responsive to their needs. If there is an issue that needs to be addressed it’s their job to handle it, and they work hard to keep quality renters satisfied. Property managers also handle lease renewals and are familiar with the market, so they know how to entice tenants to stay.
On Time Payments
Landlords don’t make a profit if their tenants don’t make their rent payments on time. It may seem innocent to overlook one late payment, but once a pattern of truancy is established it can be a difficult hole to dig out of. Inconsistent payments can put a heavy financial strain on a landlord who has to cover the mortgage costs out of their own pocket-punctual rent collection is a must for consistent cash flow. Instead of owners dealing with awkward confrontation and repeated excuses, it’s a property manager’s job to collect rent on time and enforce the lease agreement if payment terms are not met.
Instead of bearing the on the hassle, headache, and heartache that comes along with being a landlord, it makes sense to hire a property management company to deal with the unpleasant aspects of property ownership for you. No, their services do not come for free and yes, you do have to pay a fee, but the benefits reaped in money and time saved are well worth it.