Apr 29, 2020
Investing in rental properties is a good idea if you are looking to turn a profit and save some money on your tax returns each year. It can be hard for first-timers to maximize their potential without the help of a professional. This is why using a property management company is the best way to reap all of the benefits of having rental properties.
Below, you’ll find five reasons why using a professional property management company can help you increase profits and keep tenants happier than ever before.
1. Never Navigate Legal Jargon Again
Dealing with legal issues and specifications can be a huge pain in the neck, especially when you’re unfamiliar with many legal terms. Instead of having to cautiously scrutinize every word of every legal document that comes your way, you can invest in the help of a property manager to deal with the legal problems for you. These professionals can make sure that you don’t have to go through any legal headaches alone, especially when it comes to dealing with tenant issues.
While it’s true that using property managers comes with a small financial price, the amount of money you would save in potential legal fees and fines more than makes up for it. In fact, a breakdown of property management fees can help you better understand the scope of benefits you’ll be getting when signing up with a team of professionals.
2. Say Goodbye to Hefty Maintenance Costs
A happy tenant is a happy landlord, and it’s your responsibility as the property owner to ensure that your tenants can live comfortably and access the help they need. This is especially true when it comes to repair costs. It is inevitable that your tenants will need some repair work done every so often, from minor fixes to major appliance replacements. You need to be there for them to provide this in a timely and inexpensive manner.
Using the help of a property manager, you will have access to an entire network of contractors who are licensed, bonded, and insured. Plus, you will be able to share some of the repair costs with your property managers so you don’t have to front all the bills alone.
3. No More Long-Term Vacancies
When a tenant moves away, it can be hard filling that empty space, especially if the housing market is facing a downward turn. Plus, it’s expensive to front the costs needed to list the property and pay a seller’s agent to help you find new tenants. Property managers can be a great helping hand during this process, which will ultimately give you less time between vacancies as well.
A property manager knows how to:
- Use professional resources to market your property without it costing you a fortune
- Access real estate tools to prepare the place for rent and determine what the ideal monthly rate should be for the new tenants
Property managers are pros when it comes to sales. Trust in them and you’ll get potential, vetted tenants at a much faster pace.
4. Longer Tenant Retention
A high turnover rate with tenants is just as bad as having long vacancies in between rentals. As a landlord, you know that every time a tenant leaves, you have to pay to get the place cleaned, the locks changed, and other small changes made. This can put quite a hole in your pocket if you aren’t careful.
Working with professional property managers can help you keep your tenants happier so they’ll be willing to live on your property for a longer amount of time. If you’re doubtful about how a property management company can help you keep better tenants, just ask them about their tenant retention policies. It’s likely that the management company already has a tried-and-true plan in place to engage with tenants, offer better services, and give them more control over their living preferences.
5. Better and Quicker Rent Collection Each Month
There’s always that one tenant who stays behind on rent payments or asks for just a little more leniency on late payments. Trying to coordinate rent collection from each and every tenant can be a challenge, especially if you run multiple properties or have many different tenants at once. With a better system in place, you can collect rent more effectively and get paid on time, every month.
You need to establish the fine line between offering kindness and comfort to your tenants and letting them walk all over you. It’s okay to give a tenant a little leeway every so often, especially if they have a long history with you and you know they don’t have a habit of making late payments. Everybody deals with life emergencies. But you need to stick to your boundaries and your policies to ensure that every tenant follows them correctly. For more ideas on the best ways to get your tenants to pay rent, follow the Landlordology guide here.
Remember not to evict a tenant prematurely, either. There are a lot of legal components to evictions, and different eviction laws depending on where you live. The more you stick with a professional property manager, the more you can avoid accidental legal ramifications or mistakes while still treating your tenants properly.
Find the Right Property Management Company for You!
Not all property managers are created equal. While professional and reputable companies can provide the benefits listed above, it is imperative not to blindly trust the first management company you come in contact with. Take a little bit of time to do some research to find the right fit for you and your needs (and your tenants’ needs, of course!).
A competent property management company comes with the experience, resources, and professionalism needed to properly manage tenants and keep you out of legal trouble. Think of property managers as your guides and your professional assistants who want to help you get your job done more efficiently and with a higher profit for you. It’s time to take advantage!