If you own a rental property, you’ve probably had your fair share of dealings with both good and bad tenants. You’ve dealt with house calls and repairs. You’ve had to handle evictions and breaches of leases. Even if you’ve never ran into any of these issues, owning a rental property is still a lot of work! Aside from taking away some of the responsibilities associated with a landlord, here’s why we think you should use a property management company…
Increase the Value of Your Investment
Did you know that when you use a property management company it adds value to your rental property investment(s). The added values is a result of the following advantages that property management companies provide to landlords.
Rent to Higher Quality Tenants
Property management companies take the time to thoroughly screen tenants. This process can be a daunting task as it is time consuming and complex especially if you do not have much experience investigating people and their backgrounds. If you are not able to gather all the information you need to thoroughly assess the application and their eligibility, you could end up with a bad tenant. Bad tenants might refuse to pay their rent down the road and then your stuck trying to evict them which will take more of your time and money especially if they do not want to leave. Some of the top property management companies use an advance tenant screening process in order to find tenants that rent for longer terms, pay their rent on time, maintain and care for the property, which ultimately leads to fewer problems for both the landlord and tenant.
Prevent Landlord/Tenant Problems
When you use a property management company, you can avoid potential conflicts with your tenants. Professional property managers have experience in dealing with these problems and they have learned how to handle difficult situations and difficult tenants. By using advance screening, they reduce the chances that you’ll have to deal with bad tenants and things like rental scams, late payments, poor credit, or other red flags. But if problems arise, they can handle them quickly and professional.
Avoid Legal Problems & Lawsuits
If your property manager helps you avoid just one lawsuit, it will be more than worth the investment. If you’ve been a landlord for a few years and dealt with a bad tenant, you know that they can create legal and financial headaches. By hiring a professional property management company, you can avoid these problems. They are current with laws associated with rental properties and by following them they can prevent legal problems and lawsuits. These include…
- Discrimination lawsuits by properly screening potential tenants.
- Maintaining properties by conducting routine inspections and repairing damages to keep the premises safe and up to code.
- Use legal agreements that have been approved by a real estate attorney to protect you as a landlord.
- Collect security deposits and rent while utilizing appropriate accounting procedures.
- Follow all the laws should an eviction be necessary.
Reduce Vacancy Periods
Hiring a property management company will reduce periods of vacancy. If your properties are vacant for too long, you will lose money. How?…
- Make necessary cosmetic improvements that will attract new tenants.
- Help you set an appropriate rental rate by looking at your local real estate market, comparing similar properties, and using rental rate tools.
- Use effective marketing strategies including writing ads and getting them out in higher volumes to bring in more potential tenants quickly.
- Handle negotiations with tenants, deal with inquiries, show them the best features of your property, and answer questions.
Help You Get Long Term Tenants
If you’re like most, you want good tenants that will stay for a long time. Short term tenants can cause you to lose money by costing you rent, cleaning expenses, changing locks, repainting and making repairs. You’ll also have invest in more advertising and screen new prospective tenants. Time and money that you can save with long term tenants. Experienced property management companies have a good tenant retention policy to keep tenants happy which keeps them in the rental longer. Your property manager can keep your tenants happy by providing them with good communication, respond quickly to problems with the property and handle small repairs sooner.
Collect Rent and Late Fees
Perhaps the most important service that a property management company offers is efficient rent and late fee collection. They make it clear that tenants know when rent is due and if it is not paid on time, they will enforce a late fee. This helps to ensure that tenants pay their rent on time. Property managers serve as a buffer between you and your tenants. Some tenants may take advantage of you if you’re too nice. Having a property manager helps you to avoid being walked on. They address any excuses, collect your rent, and handle evictions.
Property managers have experience with handling evictions. When landlords attempt to handle evictions alone, they end up in a small claims court and face lawyers that use legal tricks to get the tenant out of court judgments. There are strict laws pertaining to eviction that must be followed during an eviction lawsuit. If you fail to follow all of these, your tenant wins or the case gets dismissed. Property managers have real estate lawyers backing them who know all about tenant evictions.
Cheaper Maintenance and Repair Fees
Both tenants and landlords benefit from good maintenance. You won’t have to worry about tenants complaining about repairs that need to be completed. Property managers hire competent repair people who charge fair prices. They also use contractors who are licensed and insured. Having trusted workers handling property maintenance and repairs will save you time and money. You won’t have to worry about conducting research and reading reviews to hire a stranger off of the street.
Maintenance Adds Value
Preventative maintenance will increase the value of your property. By maintaining your property and repairing problems early, you can prevent bigger, more expensive repairs or replacements. Property management companies conducting routine maintenance checks and inspections while providing detailed documentation that ensures everything is functioning how it should. These inspections give you feedback on the condition of your property while providing you with suggestions for modifications and upgrades which can help you save money down the road.
Keep Accurate Records
Property managers are great at keeping records for your property. This will help you keep
track of tax deductible expenses that will save you money at tax time. You are required to have proper documentation to support your deductions. By having a property manager, you can feel comfortable in knowing that all of your deductions are supported with documentation.
Having a property management company handling your rentals will help you to live a more enjoyable life. You’ll have less stress, more free time, and essentially more freedom.
Contact us (866-500-6200) for more information today!
About Real Property Management Midwest
We are local property management experts serving Cincinnati, Dayton, Columbus, & Louisville. We manage Single-Family Homes, Apartment Buildings, and Condos. With years of experience, Real Property Management is Cincinnati, Dayton, Columbus, Louisville and Northern Kentucky’s #1 Property Management and Leasing Company.