“Why You Should Hire A Residential Management Company” written by Mike Marko
What can you get from hiring a residential management company?
If you are currently a hands-on landlord, then you understand the stress of weekly maintenance calls and monthly rental and expense management.
Managing rental properties is no easy feat and can be an extremely demanding task. That is precisely why most landlords opt to hire residential management companies instead.
In today’s article, we will discuss the various benefits that can be obtained by hiring a residential management company.
The Benefits of Hiring Management Companies
The purpose of having rental units is straightforward – to ensure that you are earning a steady stream of income. However, the work involved in order to make that happen is not as steadfast. Between maintenance calls and payment follow ups, a landlord’s time is not entirely his.
This is where residential management companies come in. While it is true that this will involve a cut from the revenue, it could also mean a more streamlined business process and a whole lot more free time.
However, before hiring such a company, it is crucial to understand what exactly residential management means and entails.
What Is Residential Management
Residential management is the overall administration and oversight of residential properties, such as apartments, detached houses, and condominium units. It is also known as property management and involves managing a property that is owned by another party or entity.
This is conducted by an individual called the property manager, who acts on behalf of the owner. With most residential management companies, there are specific property managers assigned to different properties to ensure focus and attention. A huge part of a property manager’s responsibility is to fulfill the tasks and duties laid forth in the lease agreement to keep tenants satisfied and ensure the preservation of the property.
Common Reasons For Hiring A Residential Management Company
Residential management companies were established with the intention to make owning, managing and renting properties a stress-free experience. It is for this reason that landlords find hiring one an extremely appealing idea. But there are also other reasons why many landlords turn to residential management companies for help:
- They lack the time or expertise to regularly maintain the residential properties and deal with the tenants.
- They only want to be regarded as the owners and reap the benefits of having a rented property without doing the leg work.
- They want to get the benefits of housing programs, which normally require knowledge of federal guidelines that only certified property managers will have.
Services Provided By Residential Management Companies
A great residential management company can help landlords operate their rental properties more efficiently than they can on their own. The services provided by residential management companies transcend simply collecting rent or conducting inspections of the rental properties.
Examples of some of the services provided by residential management companies are:
Services Provided In Place Of The Owner
Residential management companies will take care of legal tasks and necessary paperworks involved in renting out properties. Aside from handling contracts and maintaining account records, a property manager minimizes the expenses and maximizes the profit for the owner.
Services Provided To The Property
The residential management company is in charge of qualifying and selecting prospective tenants for residential properties, as well as maintaining relations in the long-run.
Inspections will also be conducted by the assigned property manager in order to ensure that the property is well-kept. Maintenance services will be called upon immediately upon the identification of damages to prevent higher costs and worsened issues.
Furthermore, the property manager is knowledgeable of landlord-tenant laws and will abide accordingly.
Services Provided To The Tenants
One of the property manager’s main responsibilities is to keep tenants happy and satisfied. This means attending to their needs, fixing issues, handling contract issues and responding to complaints when they arise.
They also ensure timely payments are made by handling the rent collection. When situations turn to worse, they are also in charge of evictions and ensuring that the required process is being followed.
Advantages Of Hiring A Residential Management Company
Acquiring the services of a residential management company can offer many advantages. They supervise the overall operations of residential properties including, maintenance, collecting rent, preparing rental units, selecting tenants, and marketing. Most importantly, they have mastered the art of managing properties and have the experience to prove it.
Not convinced yet? Below are 9 acknowledged advantages of hiring a residential management company:
1. You Will Have Higher Quality Tenants
Not only will a residential management company advertise your property for you, but they will also conduct the interview and screening process. Experienced property managers will be at ease in doing background checks on prospective tenants and can differentiate the good ones from the bad. This ensures the high-quality standard of tenants that will be chosen to move into your property.
2. Helps You Better Avoid Costly And Timely Legal Problems
Whenever you hire a residential management company, they will assign a specific individual to manage your property. This property manager is guaranteed to be armed with the knowledge of the latest landlord-tenant laws and will know the process of:
- Tenant screening,
- Safety and property conditions of the property,
- Lease addendums,
- Terminating leases,
- Handling security deposits,
- Rent collection.
This will ensure that each task set forth will be within the law and thus, prevent any glimpses of a lawsuit in the future.
3. Gain Shorter Cycles For Vacancy
The residential management company would improve and prepare the vacant property for prospective tenants. However, before advertising the vacancy, Before they advertise the vacancy, the property manager would first determine the best rent rate for both parties involved.
In addition to this, property managers are experienced in advertising properties and can effectively market yours to attract tenants immediately.
4. There Will Be Better Tenant Retention
The residential management company provides programs that require a consistent, systematic approach to the tenants and the property. These programs are designed to ensure that tenants are kept satisfied with the management and the property itself. This would result in lengthier stays and lesser turnover costs for the owner.
5. Tighter Process For Collecting Rent Payments
Having the property manager collect the rent means that tenants will know the importance of timely rent payments every month. This results in fewer excuses for payment delays.
6. You Will Have Assistance With Taxes
The residential management company would help understand which tax deductions a property owner can claim. They would also help owners understand how to organize the necessary forms and documentation to make those tax claims.
7. Maintenance And Repair Costs Will Be Lower
Having a well-kept property and immediate repairs to damages result in happy tenants. This can be done by hiring a residential management company that will provide access to their in-house maintenance staff, as well as a network of licensed and insured contractors that often give lower costs.
8. You Get To Have An Increase In Investment Value
The residential management company will provide suggestions and feedback on upgrades and modifications of the residential property. This can lead to a better rent value that is fit for the property. The management company will also provide a better understanding as to how the upgrades and modifications will impact on maintenance and insurance.
9. Owners Will Have Their Own Personal Benefits
Hiring a residential management company provides owners with three personal benefits:
- The owner’s stress will be minimized.
- A lot of free time will be gained without having to constantly check up on tenants.
- Owners can take on more properties or pursue other interests all the time made available to them.
Final Thoughts On Why You Should Have A Residential Lease Management
In this blog post, we talked about how hiring a residential management company can help landlords handle and manage the demands of rental properties better.
Residential management companies have the expertise and experience to manage properties and provide a full array of services to clients that transcend rent collection. These services are the maintenance of the property, setting rent, selecting tenants, preparing rental units, advertising vacant properties and assisting landlords with the necessary paperwork.
With such a varied lineup of services, it comes as no surprise that there are several advantages to hiring residential management companies. In this article, we discussed 9 of these advantages which include, but are not limited to: high-quality tenants and longer retention period, timely rent payments, increase in investment value, lower costs and prevention of legal problems.
If you have further clarifications about the residential management company, you can leave them in the comments section.
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