Managing a number of rental properties on your own can quickly become overwhelming. Fortunately, landlords now have the option of hiring property management companies to look after their properties on a day to day basis. Here are just some of the things they can do for you.
Owning a rental property is no use if you aren’t able to collect rent from your tenants, but this essential work is also time-consuming. Even with the majority of your tenants making direct deposits into your bank account, you still need to monitor your accounts to ensure that your tenants are keeping up with their payments. You will also have to periodically adjust the rent and work out the optimal level to set it in the first place.
All of these are tasks that a property manager can take on for you. Because property management businesses manage properties professionally, they are well-versed in the process of identifying the ideal tenants and setting the right terms to entice them into becoming renters. Setting the right rates requires an understanding of the local areas. Comparing your property to other comparable properties will work, but it means you might miss out on the opportunities that an experienced property manager would notice.
Setting the right rent will attract tenants, but picking out the right ones to rent out your property to is a whole other question. Working out whether a potential tenant is reliable either has to rely on human intuition, which can be fooled, or references and other documentation. This latter option is much more reliable but is also much more labor-intensive.
A property manager will devise a screening process that ensures you get reliable, high-quality tenants every time. This reduces your turnover and your vacancy rate, and your properties will be filled for longer, and by the kind of tenants that every landlord is looking for.
Take this rental property management company as an example. Bay Property Management Group is a rental property management company that operates in three different states. They have an eviction rate of less than 1%. As any experienced landlord can tell you, only having to go through the strenuous and stressful process of evicting a tenant less than 1 out of every 100 times would be a dream come true. BMG has experience managing properties in Pennsylvania, Maryland, and DC. If you are looking to expand and invest in property in a new state, then it is very helpful to have people who know the laws and regulations already on your side.
The impressive numbers that businesses like BMG can boast are down to a refined tenant selection process. No system is perfect, but compared to the rates that even the best landlords often experience when they are managing things themselves, such a low eviction rate is a worthy investment.
Handle Maintenance and Repairs
This is one of the most important moral and legal duties that landlords have to their tenants. If you are renting property to other people, then there can be absolutely no question of you leaving tenants in unsafe or unsanitary conditions. Not only will that expose you to claims for damages and other potential legal liabilities, but you will also develop an atrocious reputation as a landlord.
Of course, even if you understand the seriousness of your obligation and you have every intention of fulfilling it, you are still just one person. There is always something that can come along and affect your ability to react to a maintenance incident. However, if you have hired a property manager to manage the place for you, this kind of thing will fall well within their purview.
Handling Admin and Legal Obligations
Like any other business or trader, a landlord is required to maintain accurate records of who they are renting their property to. This partly falls under the umbrella of property maintenance, but maintenance and repair records are just two types of records that need to be kept. You need to keep copies of all your legal documentation and leases that clients have signed. And that’s just the legal stuff. Property management companies already understand the rules for the territories that they operate in; this saves you having to learn them yourself if you are making your first investment in an area.
Having a property manager looking after your rental properties doesn’t just make your life easier; it also leads to better outcomes for your tenants. Think of this as a further investment in your properties. It might lower your profits in the short-term, but you’ll reap the rewards in the long run.