Property managers are often a necessary addition to any real estate enterprise. In this article, we’ve rounded up the reasons why they’re so useful. So read on to find out!
Higher Quality Tenants
Tenant screening, a service that property management companies offer, makes the process of renting out a property much simpler. Unreliable tenants can leave you stuck with a variety of problems, including:
- late payments
- property damage - short rent periods
These are all issues that you can avoid by going for a property manager. These companies are highly experienced and know exactly how to scan potential tenants for any signs of irregularity.
Fewer Costly and Time-Consuming Legal Problems
One difficult tenant can easily lead to a lawsuit. Even if a case brought against you has no merit, you’ll still have to deal with lawyer fees and the potential for expensive settlements.
A good property management company will have a wealth of legal experience. Additionally, property managers are trained to stay updated on the latest tenancy laws governing your area.
Shorter Vacancy Cycles
No one likes vacancies since they’re a waste of time and money. Property management companies strive to do three things in order to reduce vacancy length:
1) Prepare the property for rent: Nice-looking properties obviously attract more tenants, which allows you to be choosier about whom you select.
2) Set a good rate: Property managers always have their fingerson the local market’s pulse. They’ll maximize your profit by stopping you from overshooting or underselling your property’s value.
3) Sell your property well: This one should go without saying, but one of the property managers’ biggest jobs is sales/advertising. Their experience and connections allow them to get the best ad rates and spots. They know how to show a property and can ensure that your prospective tenants see your building in its best light.
Better Tenant Retention
Tenant turnover means a lot of effort and money need to be put into refurbishing. If you can keep the same tenants for a long period of time, you can save moneywithout paying for those costs. A good property management company will have a tried-and-true tenant retention policy.
Assistance with Taxes
Property managers know exactly which parts of your contracts are tax deductible and thus they can help you save as much money as possible.
Lowered Maintenance and Repair Costs
Management firms have in-house maintenance staff as well as connections throughout the industry. As a result, you don’t have to pay much to get your properties fixed/cleaned up. These experienced repairmen will also be able to advise you regarding modifications, thus increasing your investment’s value.
Personal Benefits for Owners
Management companies allow you to walk away from a property deal with at least the same amount of profitand shift a lot of the responsibility for your portfolio off of your shoulders.
The decision of whether to hire property managers is yours, but we hope that displaying some of the many benefits they provide will help you make your final decision.