With the help of a good property management company you can increase the value of your investments significantly. This is why many experienced real estate investors often recommend hiring a competent management firm. Here’s a list of some of the best benefits to having a good property manager.
Better quality tenants
During the tenants screening process, it is possible to rent your property to a bad tenant. Though you can certainly get them out of your home, it can be a long process and it is best to not accept them from the beginning. The process of a thorough screening can result in tenants who:
- Rent for longer periods of time
- Pay rent on time
- Do less wear and tear on the property
- Are likely to cause fewer problems
With the help of an experience property management firm, you can quickly find real facts about potential candidates and use that information to analyze for warning signs. You help protect yourself from rental scams that target owners and lawsuits that claim discrimination due to inconsistent screenings by having a management firm process the screening for you. This makes it significantly beneficial, as you are shielding yourself from scams, lawsuits, and bad tenants.
Fewer legal problems
Experienced landlords know that it can take just one bad tenant to cause major financial and legal problems. Competent property management firms are knowledgeable and up-to-date with landlord-tenant laws, so having one will make sure you won’t be vulnerable to potential lawsuits. Though each state has their own laws, some federal laws cover:
- Safety conditions of property
- Tenant screening
- Terminating leases
- Lease addendums
- Rent collection
- Handling security deposits
With the help of a property management company you can avoid lawsuits that can cost you time and cause anguish.
Less vacant properties
There are three critical tasks that a property manager can help you with. These can affect the amount of time it takes to have your vacancies filled. These tasks include:
- Preparing and improving your property for renters
- By making suggestions and overseeing cosmetic renovations, a property manager is able to maximize revenue
- Calculating the best rent rate
- You can be stuck waiting if the rent is too high, and you will lose money every month if the rent it too low. You will need to acquire data on the local market and on similarly sold properties, as well as use of rental rate tools.
- Marketing your property effectively. Experience management firms understand how to market effectively, which can draw a large pool of candidates in a short amount of time. Also, they can usually negotiate low advertising rates because of their volume.
Higher retention rates
A high tenant turnover rate can have a serious impact on revenue. The process of turning over a property can involve painting walls, changing locks, cleaning thoroughly, and possibly doing small repairs and getting new carpet. It also includes all the effort it takes to market, show, screen, and set in a new tenant.
By making sure your tenants are well cared for and happy, you can avert this expense and time consuming process. With the help of a good property management firm, you can have access to updated and tested retention policies that can help maximize the length of stays by happy tenants. The whole process requires a consistent and effective systematic approach which good management companies have.
Low cost of repair and maintenance
An important part to owning property is keeping up with repairs and maintenance because it can keep your tenants happy and it can protect the value of your investment. With the aid of a property management company you will be able to access their maintenance staff. You will also be able to access their network of licensed contractors who will usually have good pricing and perform high quality work. The firm may be able to get discounts on volumes of the work, which translates to more savings. They are also knowledgeable of maintenance issues and are usually capable of supervising the work.
So there they are, some of the best reasons to hire a good property management firm. Remember that with the help of such a company you can expect to have better quality tenants, fewer legal problems, less vacancies, higher retention rates, and lower costs of repair and maintenance. Use a property management company for significant benefits.