Why Use Professional Property Management?
There are many reasons why rental property owners might choose to use professional property management rather than manage the property themselves. One of the most compelling reasons is that good property managers can add significant value to a real estate investment while saving the owner time and stress.
Have you ever wondered what property managers bring to the table? Here are a few ways that a good property manager earns their keep:
Higher Quality Tenants
Getting a bad tenant out of your property after they have moved in is possible, but difficult. A good screening process will help make sure rental property owners work with reliable tenants. These are the tenants who pay on time, rent for longer, put less wear and tear on a property, and cause fewer problems.
An experienced property management company will be able to analyze applications and recognize warning signs, finding quality tenants while being able to pass up those that might prove problematic. They will also be able to shield you from scams directed at property owners and discrimination lawsuits due to faulty screening processes.
Fewer costly and time-consuming legal problems
It only takes one difficult tenant to cause significant legal and financial headaches. A good property manager will know the latest landlord-tenant laws and will make sure their property owners are not vulnerable to potential law suits.
Each state and municipality has their own laws, and then there are federal laws to consider as well. These laws cover a number of areas including, tenant screening, safety and property conditions, evictions, inspections, lease addendums, terminating leases, handling of security deposits, and rent collection.
Shorter vacancy cycles
When it comes to real estate investments, time is money, and a good property manager will help ensure that rental properties don’t stay vacant for long.
They do this by improving rental properties and preparing them for rent, determining the best rent rate for the property, and effectively marketing your property so that it garners a large pool of candidates in a short period of time.
Better tenant retention
Losing rent on vacant properties isn’t the only thing to worry about though. High tenant turnover is an equally serious financial problem. The turnover process involves a thorough cleaning, changing the locks, painting the walls and possibly new carpet or small repairs, not to mention all the effort associated with marketing, showing, screening and settling in a new tenant. This is a time-consuming and expensive process that can often be averted by keeping tenants happy and well cared for.
A good property management company will have a time-tested tenant retention policy that ensures happy tenants. While it may sound simply, it requires a consistent, systematic approach.
Tighter rent collection process
The way that rent and late fees are collected can be the difference between a profitable rental property and an unprofitable one. Rent must be collected on time every month to maintain consistent cash flow, and tenants must know that it’s not negotiable. A good property manager will be a buffer between yourself and the tenant, allowing them to be the bad guy while your profits stay intact.
If eviction becomes necessary, strict laws must be followed, and doing it wrong can cause a real mess. A good property management firm knows the law and has a proven process for getting the best possible outcome under the circumstances.
Assistance with taxes
Property management companies will be able to help their clients understand claimable deductions, organize necessary forms, and get them to tenants and vendors on time.
Moreover, property management fees themselves are also tax deductible.
Lower maintenance and repair costs
Good maintenance records and quick repairs are necessary to preserve the value of your investment as well as keep tenants happy. By hiring a management firm you gain access to their network of licensed, bonded and insured contractors who have already been vetted for good pricing and quality work. This can translate into significant savings for rental property owners.
Personal benefits for owners
On top of all the benefits of using a professional property manager that have already been listed, there are also personal benefits for owners. Utilizing a property manager gives owners less stress, more freedom, and frees up time that can be spent on other investments.
A final thought
These results can only be expected if a management company is competent, trustworthy and a good fit for your property. Finding a manager like Martin Feinberg, who has 30 years of experience in a community as well as good connections and a proven track record, is essential for success.