1. Setting Market Driven Rental Rates:
While searching online or looking through the paper to see what other landlords are charging for similar properties is a fine way to ballpark your rent price, a good property management company will conduct a thorough market study in order to set a rental price for your property, ensuring that you’ll achieve the perfect balance between maximizing monthly income and maintaining a low vacancy rate.
2. Timely Collections and Deposits of Monthly Rent Checks:
If you’ve ever worked in a billing department, you know that securing payment from clients can be difficult, not to mention awkward. Quality property management companies have efficient, tried-and-true systems in place to effectively collect rent and maintain on-time payments.
3. Marketing and Advertising your Property:
Through long experience, a property manager will know exactly where to market your property and how to craft compelling advertising materials—a significant advantage when it comes to filling your properties quickly and avoiding long vacancies.
4. Finding Quality Tenants:
Experienced property managers are experts at finding good tenants, and will take care of all the details, including the securing all criminal background and security checks, running credit reports, verifying employment, and collecting previous landlord references.
5. Managing Tenants:
In addition to finding good tenants, a property management company will manage all aspects of the tenant-landlord relationship. The property manager will handle both routine and emergency maintenance, take care of routine inspections, and manage any situations where conflict resolution is required.
6. Managing Vendor Relationships:
Property management companies have relationships with maintenance workers, tradesmen, contractors, suppliers, and vendors that it’s almost impossible for an independent landlord to duplicate. Not only will your property manager get you the best work for the best price, they’ll oversee any necessary maintenance projects.
7. Complying with Housing Regulations and Property Laws:
There is a multitude of applicable laws and regulations to abide by when renting and maintaining your rental property. These include local, state and federal regulations, as well as fair housing regulations (such as the ADA). A property manager can help you avoid lawsuits by keeping your property up-to-date and in compliance with these regulations.
8. Enabling you to expand your Investment Portfolio:
If you manage your own properties, may be limited to investment opportunities within a tight radius of where you live or office. By hiring a property manager, you can take advantage of investment deals in any area of town or location you wish.
9. Maximizing your Return of Time (ROT):
By having a property manager take care of the day-to-day aspects of running your income property, your free to spend your time identifying further investment opportunities, furthering your career or just relaxing.
10. Maximizing your Return on Investment (ROI):
Most property managers charge a percentage of your property’s monthly rental rate in exchange for their services. The rate typically runs anywhere from 6-10%, which is generally less than the money you save by hiring a professional to take care of your property.