If You think that Property Management does not require professional experience, You might just want to think again!
With so many emerging Real Estate markets, hit TV Reality shows, and local Real Estate Investing Events, many aspiring investors believe that owning rental property will be just a matter sitting back and collecting rent on auto-pilot. You find good tenants - they take care of your property as if they were paying the mortgage - and you retire on an island.
Ideally the dream of all Investors, but lets take a closer look at some of our Top 10 reasons to Hire a Property Management Company. -
1.) Property Inspection, Analysis, Market Reports
Determining your current property value or local market area rent takes industry experience and data that only active real estate professionals can provide. Local Property Managers have access to real estate databases that can accurately determine your property's worth. Along with vendor pricing experience - should your property be in need of repairs or an overhaul - your property management company can be your quarterback with assisting the right plays. Risk mitigation experience is invaluable, and can save you time and money!
2.) Tenant Screening & Placement
Property Managers have access to an abundance of resources that enable them to find renters looking for properties to rent in your local area. Each Property Management company has their own strategic system with sourcing prospective tenants for your property. Some are more effective than others, while some that are effective may have way too many properties on their hands. Use your discretion in this area, and the best way to find out is to Google "Tenant Placement Services" in your local area.
Some landlords that may own 1 or 2 properties may have success with up close and personal relationships with their tenants, by electing to disclose who they are as their landlord, and other personal information such as "where to send their rent". Others, tend to want to keep their personal lives and matters to themselves, and through experience know that it is best to have a mediator involved when handling Landlord /Tenant relations. Your Property Management Company will safeguard your personal information to the best of their ability, and also act in a fiduciary manner for you as a client.
4.) Reducing Emergency Maintenance Headaches
Ever had one of those 1a.m. phone calls concerning No-Heat or Hot-Water? A professional property management company will respond to the concerns of your tenants maintenance issues during peak hours and off peak hours. When those phone calls happen, most tenants expect a prompt resolution. A Property Management Company will already have streamlined systems in play, will arrive at the situation, and dispatch the appropriate vendor accordingly. Most Property Management companies have well established relationships with their team of vendors, and can perform most repair task cost efficiently, due to prior business relations with vendors.
5.) Having an Eye or Your Property Without Having to Watch Out
Your #1 goal should be to make sure that your investment stays on the upward swing when it comes to (ROI) returns on investments. Some tenants can start out being responsible in the beginning, and then later on things take a turn for the worse. Routine check-in's is one of the benefits that an owner receives with hiring professional property management services. With move-in/move-out reports, documentation is kept of your property's condition, and can be verified should civil matters arise.
6.) Increasing the value of the investment
One of the benefits of having a professional Property Management Company is that they can suggest cost efficient repairs or improvements that enhance the overall value of your property. Having an attractive rental property to attract prospective renters can be crucial in today's rental property market. Small improvements such as painting a common area hallway or building front door can give your property the right curb appeal to attract tenants.
7.) Financial recordings and Security Deposits
Your Property Management Company will provide you with expense reports and income statements every month for your rental property. They will also manage your security deposit escrow, deduct from if necessary, and send back to your tenants according to the States regulations. Your income statements can help you during tax time and your management fees are 100% Tax deductible.
8.) forget about hearing that " oh yeah, The check is in the mail" Again
One of your Property Management Company's primary goals should be to collect your tenants rent in a consistent and timely fashion. As a property owner you depend on the income that your property produces for various reasons. Avoiding hiccups at all cost can be crucial to cut profit loss. An enormous amount of time, effort and energy is involved with calculating and tracking rent that is due. Along with sending notices, keeping track of documentation, and filing in the appropriate Rent Court Jurisdictions when necessary. Save yourself the time, frustrations and worry by hiring a professional property management company. They will take care of all necessary paper trails and keep your rent income in a positive balance.
9.) No More Dreaded Evictions to attend
Your property manager should have enough experience with Rent Court proceedings to represent on your behalf in court, and should also stay up to date with the ever changing Landlord/Tenant regulations. This can be crucial when determining the long term success for income to your investment property. Many property managers have well established courtroom presence, and a history for providing solid documentation records. Your Property Manager will file accordingly, send and post notices, and accompany the sheriff and hauling contractors during the eviction.
10.) Get the freedom and flexibility for personal matters and to Invest in other Housing Markets
In conclusion, the purpose in hiring a Property Management Company is to relieve the burdening stress associated with managing rental properties, and to have a passive real estate investing experience. Owning rental properties can be a great investment. But as you can see with all that we have discussed, there is hard work and due diligence involved. If you own rental properties, but feeling overwhelmed for whatever reason, do yourself a huge favor and seek professional Property Management Services to lighten your load. Having the right Property Management team can allow you to focus more on the things that matter to you in life. With professional services, you can also free up time to invest and expand your rental property portfolio. Do yourself a huge favor that You won't regret! Hire a professional Property Management Company!