Whether you are a beginning investor or someone who has been involved in purchasing real estate for a while, it is wise to hire a property management company to manage your rental property. Perhaps you have heard that a lawyer should not defend himself or that a doctor should not treat himself. Likewise, a property owner should not manage his or her own property. Here are ten reasons why you may want to consider hiring a professional rental management company.
The ability to professionally manage the company
As a property owner, you must be able to access your own strengths and weaknesses. You may be extremely good at capitalizing on a good real estate deal, but not very good at managing people. A good property manager will be able to keep things on a professional level and not allow emotions to interfere with decisions made concerning the property. The property manager will be able to present themselves to the tenant as a representative of a professionally managed property management company, as opposed to an individual owning a single piece of property.
Located in the same community as the property
If you do not live in the same city where the property is located, you will not have knowledge of what's happening in the community. A local management company will be knowledgeable about the activities in the city. The company will have personnel who can monitor what is happening at the property, take precautionary actions, or provide security if necessary. A property manager can respond quickly to any emergencies regarding the property. If you do not live in the city where the property is located, you may not become aware of any problems until after the fact, and they become very costly.
Knowledge of market rent rates
Rental rates vary depending on the property type and the neighborhood. A rental management company will be familiar with the market rate for rent. They will be able to price the property appropriately to attract potential renters. If you don't have knowledge of the market rent rates, you may be tempted to price the property based on the amount of money you have invested. If the property is priced too high or too low, it could be passed over by potential renters.
Familiar with landlord/tenant laws
The property management company will employ agents who are familiar with landlord/tenant laws. The entire process of marketing and renting the property will be conducted by following the requirements of the landlord/tenant laws for that area. The Chandler property management company will use the required rental applications and contracts. They will also be able to handle any eviction process if it were to become necessary.
Conduct background checks
Property management companies will be able to prequalify potential renters and steer them to the right property that best fits their needs. Once a person decides to rent the property, the property manager can check the potential renter's credit history and verify their current employment. Although you can do these things as a property owner, it can be confusing, and there are fees involved. You can avoid having to deal with this aspect of renting the property by using a rental management company.
Attract A Larger pool of potential tenants
A well-established rental management company will have several properties that they manage. Because they handle numerous properties, they will be able to attract a larger pool of potential tenants as opposed to one person with one property to rent. People looking for a place to rent often seek the services of the rental management company to help them find a place to rent. If one property does not work out for the potential tenant, the rental management company will be able to offer them one of the other properties that they manage. It will be to your advantage if one of the other properties that they manage is your property.
Knowledge of bad tenants
If the property management company is large enough or has been in business for some time, they will most likely have a record of previous clients with a poor rental history. If a person has been evicted from a rental property in the past, they are not likely to try and rent another property that's managed by that same rental management company. Therefore, the property management company can act as a deterrent to persons with an undesirable rental history.
Provide property maintenance
Often rental management companies will have maintenance personnel on their staff or persons who they work with regularly. If there were a need for small repairs or maintenance, the property management company would be able to provide the service immediately. Your tenants will not have to be inconvenienced and have their lives disrupted with unnecessary delays in getting routine maintenance conducted, such as unclogging sinks or drains. The rental management company can also provide other services such as lawn maintenance or snow removal.
Monthly property rental statements
The property owner will receive a monthly rental report with an itemized list of expenses and the amount of rent collected from the property management company. The property owner will not have to worry about keeping purchases and funds separate from their personal finances. It will already be done for them. The rental management company will provide the property owner with a check for the monthly rent, along with the monthly rental report. Having the expenses and income information provided by the rental management company will make it easier for the property owner when it's time to file taxes.
Minimal property management fees
The rental management company will charge a fee for the services they provide. However, the cost of these fees is minimum compared to the services you receive. It will be a small price to pay for not having to worry about the day to day management of the property. Plus, if the property owner gets just one bad tenant, that one tenant alone would cost more money in going through an eviction process, than what the owner would have had to pay a property management company.
A professionally managed company that provides located in the same community as the property, with knowledge of market rent rates, landlord/tenant laws, the ability to conduct background checks, attract a large pool of potential tenants, weed out bad tenants, provide property maintenance, monthly property rental statements, at a reasonable fee seems like a good reason to hire a rental management company to manage your property.