The right property management business can quickly turn into a tremendous asset, possibly only following the very properties that they take care of for you. If you’re not sure whether or not you should hire one for your circumstances, then it’s worth knowing just what a property management firm can do for you and your rentals. One thing you should know is that managing the rental properties takes a lot of time, says the Paramount Management & Realty team, and it would be best for you to hire a property management company to manage them for you.
Keep reading to learn 8 specific benefits you can enjoy from having a property management service provider handle your rental properties for you.
1) Vacancies End Faster:
The right property manager can do three things that speeds up how fast your vacancies get filled. The first is preparing and even improving a property for rent to make the most revenue. The second is determining an optimal rate of rent, since going too high means you see the vacancy continue, but going too low means you lose money after you start renting out the unit. The third is an effective marketing plan for your property.
2) Weeding Out Issue Tenants:
A veteran property manager has seen hundreds, if not thousands, of applications over their career, so their experience is going to be far more likely to spot possible warning signs when looking over the paperwork of an applicant. You’ll have better odds of finding reliable tenants when you let them handle the screening and application process.
3) Serving As A Tenant Point Of Contact:
When anything breaks at one of your properties, it’s not always possible, much less convenient, for you to drive over yourself and inspect it, particularly if you’re in another state or town. Your property manager can address issues at any hour of day or night and make arrangements for a service provider to do repairs or replacements. Likewise, if you have on particular tenant that seems to be a source of unending complaints, be it a dog that relieves himself outside or noisy neighbors, you can sleep through the night, and maybe even the morning and early afternoon, knowing someone else is taking those phone calls.
4) Making Sure Rent Gets Paid On Time:
Given that most property management businesses deduct their service charges and fees from monthly rent amounts, they’re highly motivated to keep all those payments rolling in. Getting rent payments on time relies on consistent rent collection, so you should find a property management office that enforces applicable lease policies when payments aren’t received. When tenants fail to pay their rent consistently on time, if at all, then a property manager will know just what to do in response to the circumstances, including leading up to and carrying out an eviction if it is needed.
5) Minimizing Tenant Turnover:
Great property management firms such as www.3cre.com know just how to keep as many of their renters as they can satisfied, if not happy. They prove available to tenants and responsive to caring for issues that arise. Pleased renters are more likely to stick around and put up with reasonable increases in rent.
6) Lower Costs For Maintenance And Repairs:
Good repairs and maintenance is something that keeps tenants happier, while also preserving the property values of your investments. So, they’re critical to any landlording. When you hire a property management firm, you get access to two things. The first is their own internal maintenance staff. The second is their accumulated network of insured, bonded, and licensed contractors and technicians who were vetted for both quality workmanship and great pricing, which they’ve often proven they stick to time and again. This all translates into substantial savings over having to find and then hire a handyman or professional on your own every time you get a call. Not only can a property management firm get a lot of discounts on their work, they’ll also know which particular contractors are familiar and adept with maintenance issues so they handle the work capably, taking care of both your tenants and your properties at the same time.
7) Grow Your Investment Value:
Preventative maintenance is crucial to successful home ownership, but if you’re not living there, you can’t see to it yourself. A good property management firm will have systems in place that catches issues early before repairing them so they don’t blossom into bigger issues later on. This does necessitate a maintenance check program written out, which should then lead to documentation of the maintenance that happens on routine visits. Your property management firm can also make suggestions as well as feedback on modifications and upgrades that might enhance how much rent can be charged as well as what impact they might have on insurance and maintenance.
8) Help With Your Taxes:
Your property management company might actually understand and know just which deductions you can possibly claim. If you get lucky, they might even organize the needed documentation and forms to help you make those claims. On top of that, any fees paid to property management firms tend to be tax-deductible in their own right.
So, now that you know 8 possible advantages the right property management office can provide you, when should you actually consider using one? For starters, if you have multiple rental units or properties, they can save you time. If you don’t actually live near your rental, you can avoid long commutes even for minor matters or lots of repeated trips. They’re certainly beneficial if hands-on management isn’t your thing or your time is preciously limited. Even if you previously handled management tasks yourself and get suddenly inundated, they can relieve you of the burdens. They also make sense if you don’t want to turn into an employer that hires his or her own residential manager or if any of your properties are involved in affordable housing programs.
The last thing is if you can afford the costs. Depending on your contract, service level, and market, a property management firm might charge between 5 and 15 percent of the collected rent. However, between the time you save and the cost-savings services they provide as illustrated throughout this article, you might actually wind up saving money in the end because your rent collections grow and your overall expenses go down.
