Owning a property can be a rewarding experience, a solid investment, and provide a solid income stream. However, it doesn’t come without certain trials and tribulations that are a part of being a homeowner. From maintenance and upkeep expenses to tenant acquisition and management, owning a property can be a waste of time and resources if not executed correctly; that’s what a property management company does. These companies are paid by the property owner to take care of the practical aspects associated with the property. A good property management company will be responsible for marketing the property, finding and screening applicants, and maintaining and repairing the property, as well as managing tenants, collecting payments, and issuing deposits and notices. Essentially, these companies do the hard work for the owners so they can focus their energy elsewhere.
In addition to giving homeowners more time, property management companies provide a number of other solid benefits. They supply:
Higher quality tenants
One of the many jobs of a property manager is to find quality tenants to fill vacant properties. They thoroughly screen applicants by looking at factors like their rental history and credit score, calling their references, and even interviewing them to determine if they would be good tenants. This process ensures that properties are filled with desirable tenants who will take care of the space, make their payments on time, and generate a steady income for the owner. Management companies have extensive experience in screening applicants and can easily spot the warning signs and red flags.
Shorter vacancy cycles
The owner does not make a profit if his property is not occupied. In fact, unless they own the property outright, during times of vacancy, owners generally have to make the mortgage payment out of pocket. When a property is occupied, the tenants’ rent can go toward the mortgage payment or be used as income. Property management companies are in charge of marketing and advertising properties to the right audience and seeing that the vacancy is filled.
Better tenant retention
Tenant turnover requires additional time and money to clean, market, and fill the space, all of which are costly to homeowners. To avoid turnover and vacancies, it is imperative to retain quality tenants. Property management companies serve as a point of contact for tenants and respond immediately to their needs. If there’s an issue that needs to be addressed, it’s their job to handle it, and they work hard to keep quality tenants happy. Property managers also handle lease renewals and are familiar with the market, so they know how to entice tenants to stay.
payments on time
Landlords don’t make a profit if their tenants don’t pay their rent on time. It may seem innocent to overlook a late payment, but once a pattern of truancy is established, it can be difficult to break out of. Inconsistent payments can put a huge financial strain on a landlord who has to cover mortgage costs out of pocket. Timely collection of rent is essential for a constant cash flow. Instead of landlords dealing with awkward confrontations and repeated excuses, the property manager’s job is to collect rent on time and enforce the lease if payment terms are not met.
Rather than put up with the hassle, headache, and heartache that comes with owning it, it makes sense to hire a property management company to take care of the unpleasant aspects of property ownership for you. No, their services are not free and yes, you do have to pay a fee, but the benefits gained in money and time saved are well worth it.