Self-management or hiring a property management company? Understanding the Benefits!

 

property management

Before you choose to hire a property manager or focus on self-management, you must be aware of what happens when you own a rental property. Managing rental homes is an art. There are so many things you must focus on. If you are a novice, first-time investor, your equation will be simple. It will be equivalent to rental income minus mortgages minus expenses! This is the amount of profit you will make. This formula works well for novice investors. When you own several rental properties, the equation becomes more complex. This is when landlords look for property management companies. Many landlords have found peace after hiring a property management company. In fact, they are able to focus on more investments.

Handling Maintenance

All your properties must be managed. Regardless of whether you own a single home or dozens, you must invest on maintenance. Rental properties must be managed periodically. Meanwhile, you should be prepared for emergency maintenance too. Not all renters will take care of your property. Some can subject your home to wear and tear issues. These homes will require more maintenance. As landlords, you must be prepared to keep up with such tenants. When you are unable to manage notorious tenants, hire a property manager. “Seasonal Maintenance” is as important as emergency and routine maintenance. Seasonal maintenance will prevent your gutters from overflowing. Many landlords schedule seasonal maintenance to keep a tab on their tenants and appliances. Good maintenance tricks will increase the life of your property.

Property management companies specialize in maintenance. They will make sure your property lasts for a long time. It is their responsibility to check on tenants and schedule home inspections (before and after renting out a property).

Tackling Vacancies

Handling vacant homes is easy said than done. If the vacancy rates of your properties are increasing, you will be in serious trouble. Most landlords depend on rents. A vacant home can have a massive impact on their monthly revenue. Finding quality tenants is not a simple task. It doesn’t stop with a post on Craigslist. You must be talking to tenants, negotiating terms and showing the property to them. Moving on, you must screen tenants, prepare rental applications and sign rental documents. These are time-consuming tasks.

Professional property managers are trained to find tenants. They have mastered the process of screening tenants. The profitability of your investment depends on its tenants. If you get quality tenants, you will make a good deal of income. With the support of property managers, you don’t have to worry about addressing vacancies.

Maintain a good relationship with your tenants?

Landlords are expected to keep an eye on their tenants at least once in a while. This check can be on anything. Most landlords visit tenants for seasonal maintenance. They ask and inspect if everything is functioning well. If there are issues, the landlord has to rectify them. Some tenants treat landlords poorly. They may raise complaints on your seasonal visits. Good or bad, you must be prepared to handle them! If not, hire a property manager.

Property managers work with teams that engage in tenant visits. These teams make it a point to greet tenants and inspect properties. Well, nothing can go wrong now! Property managers know how to handle good and bad tenants.

Collecting Rent?

The talk about rental properties remains incomplete without “Rent”. Rent collection must be a mail away. Unfortunately, it is not easy or simple! Landlords have to handle different types of tenants:

  1. – Those who pay rent on time
  2. – Those who don’t pay for months
  3. – Those who ask for small extensions
  4. – Those who run away without any news!

When tenants don’t pay rent on time, things can become complicated. You will need extra effort and time to collect your money.

Luckily, property managers can take care of rent collection for you. They will take care of the emails and follow-ups. Even if your tenant is on a vacation, they will collect rent on behalf of you. All the “misses” and “what ifs” will become easier with a property manager.

 

The Ultimate Bottom Line

The list of services offered by property management companies doesn’t stop here. In general, the property managers will charge you 5 to 10 percent of the monthly rent. This means you should pay $100 for a property worth $1000! (For most landlords, this is definitely a fair deal.) When you own many rental properties, the property managers become very important. You need them to keep everything under control.