“Services Provided By Property Management Companies” written by Mike Marko
Are you looking for dependable property management companies?
Managing a rental property business requires a lot of effort and patience. It’s a balancing act of both taking care of your property while keeping tenants satisfied… And then there’s a big workload which consists of managing paperwork, screening or evicting tenants, plus a ton of other things.
Being a property owner is hard, isn’t it?
Fortunately, there are property management companies. Their main duty is to help you manage your property. In this article, we’ll discuss the services provided by good property management companies.
Services And Abilities Offered By Good Property Management Companies
In today’s rental environment there are hundreds of rental property businesses that are trying to grow and manage properties while making a profit. Finding or becoming a great property management company is the best way to ensure that any investment or rental properties are managed correctly and that they will produce profits.
As a property investor, you should look to avoid the stressful days of managing a rental property business by hiring a good property management company.
So what exactly are the qualities and desired results a good property management company should have?
Before we talk about that lets first discuss what exactly is property management…
What Is Property Management
Property management is the management of residential, commercial and industrial real estate properties including apartments, detached houses, condominium units and shopping centers. Property management usually deals with managing the property that is owned by another person or company. The property manager acts and does all the responsibilities on behalf of the real owner.
Companies who provide property management can help lessen the workload of the property owner, managers, and landlords in managing a rental property. The following are the duties of property management companies.
Duties Of Property Management Companies
The main duty of the property management companies is to preserve the value of the property while continuously producing income through rental of the properties.
Most property management companies help property owners with the following responsibilities:
- creating budgets
- advertising rental units to prospects
- qualifying and screening tenants
- collecting rent
- complying with local landlord-tenant and real estate board laws
- maintenance and repairs of the rental properties
- taking care of tenant’s complaints
- pursuing evictions
Many successful and experienced property owners will prefer having a good property management company while managing their business. Not having to worry about the management and everyday operations of the properties they own allows investors to focus on new investments and other business.
However, the services offered by property management companies are quite expensive but though their services you can earn it back a profit in your rentals. Other essential duties of property management companies can help you gain a faster return on your investment into rental properties.
Chooses Higher Quality Tenants
A good property management company will have an excellent tenant screening and background check process for any new tenants. Having good tenants is the key to a successful rental property business.
Property management companies can help you avoid having bad renters that would only cause troubles to your business. Experienced property management companies are capable of screening out bad tenants, poor credit payors, and taking the reports of background screening to find out the real information about applying tenants and are capable of while distinguishing warning signs of bad tenants.
Property management companies also should know how to run a thorough and proper tenant screening process. When renting multiple units or a single unit there could be multiple applications for rental of that unit. Using a property management company that is experienced in sorting and screening applications will help in the process of identifying which applicants are capable of being a good tenant. Avoiding various problems such as bad tenants, rental scams, and lawsuits are the most important advantage that you could get from hiring a property management company.
Being Knowledgeable Of Landlord-Tenant Laws
Good property management companies know and they are familiar with the latest landlord-tenant laws. Property management companies are aware that it only takes a bad tenant to cause several legal and financial problems. Even if a bad tenant has passed through the tenant screening process they know what to do and how to deal with bad tenants.
Property management companies will do their best to ensure you that they will protect you from any possible lawsuits. They know and studied the latest landlord and tenant laws and normally their company ensures you that they are ready for any potential lawsuit.
Works To Shorten Vacancy Cycles
Having long-term and easy to deal with tenants is key to a good property management business. When tenants are happy they tend not to complain or ask for unnecessary repairs of upgrades to rentals.
A skilled property management companies can help you deal with the following so that there will be shorter vacancy cycles:
- Improve and prepare the property for rent
The property manager will suggest various ideas that could improve the looks of the property to attract tenants. Also, most property management companies have contracts in place with contractors, handymen, painters to ensure the property is well maintained at a reasonable cost.
- Decide the best rent rate
A good property management company should understand the rental market and be able to suggest the best rent level to keep the rental filled as well as be competitive in the rental market they are managing. Having a costly rent would only prolong the vacancy of the rental property for a long time. On the flip side of that, having a cheap rent would lose a lot of income for the owner or investor.
Property management companies will help you set the right amount of rent for your property as the rent will be based on the market value and the demand for a rental property.
- Effectively market and advertise the property
Property management companies can deal with a lot of advertisements and in most cases, they already know how the industry works. That’s why they are familiar with the “Dos” and “Don’ts” of advertising a rental property. Their company could expose your rental property to a large number of potential tenants in a short time span.
The experience of most property management companies could also negotiate a less expensive advertising rate.
Helps To Retain Good Tenants
Many property management companies have a tenant retention policy and could help you avoid the costly effects of lost rent due to large turnover of tenants. The turnover process of rental property is often expensive and can involve major renovation or repair of the rented property. The entire turnover process for adding new tenants requires and includes the changing of locks, repainting the walls, and major cleaning.
Many property management companies have a consistent and systematic approach so that they can successfully retain tenants.
Handles Rent Collection Process
Experienced property management companies can be dependable and they can handle and manage the rent collection process properly while minimizing the chance of failure to collect rent. On time rent payments is important in keeping a consistent cash flow.
Your property manager will be the one to do the hardships of collecting rent from your tenants. If a tenant refused to pay their rent on time, the property manager has a choice to evict them from the property. Additionally, a good property management company will charge and collect late rental fees and be on top of the eviction process if the renter refuses to pay rents.
Property management companies are familiar with the law and will run the proper process in case of any eviction that might occur.
Responsible In Property Maintenance And Repair
Many property management companies have in-house maintenance staff and/or a network of licensed, bonded and insured contractors which provide quality services. The property management company will maintain the property to help both retain tenants and be compliant with local laws and ordinances.
Property management companies know contractors and can supervise maintenance issues. They should have a written maintenance check program, detailed maintenance documentation and regular maintenance visits.
They can also provide ideas and feedback if the property needs to have upgrades and modifications.
Provides Benefits For Property Owners
Hiring a property management company can help property owners have:
- Less Stress
Property management companies will handle almost all of the stressful task including the collection of rent, evicting tenants, rental scams, and piles of paperwork.
- More freedom
Property management companies can give property owners freedom. The hassle of checking the rental property will be taken care of their company.
- More available time
Just like freedom, property management companies can give you more time for yourself. You can use your time with your family, other businesses, or doing your hobbies.
Final Thoughts On Property Management Companies
Property management companies lessen the workload for property owners. Property management companies will take care of almost anything. They will find and select the best tenants for your rental property business. In addition, they will help take care of both the day to day and the long-term responsibilities of property management.
Property management companies can help eliminate the burden of owning rental properties while still realizing the benefits.
Please feel free to comment below with any questions you may have about property management companies.
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