Owning a property can be a rewarding experience, a sound investment, and provide a solid income stream. However, it does not come without certain trials and tribulations that are part of being a homeowner. From maintenance and upkeep expenses to tenant acquisition and management, owning a property can be a waste of time and resources if not executed properly; that’s what a property management company does. These companies are paid by the property owner to take care of the practicalities associated with ownership. A good property management company will handle marketing the property, finding and evaluating applicants, and maintaining and repairing the property, as well as managing tenants, collecting payments, and issuing deposits and notices. Essentially, these companies do the hard work for the owners so they can focus their energy elsewhere.
In addition to giving homeowners more time, property management companies provide a number of other solid benefits. They supply:
Higher quality tenants
One of the many jobs of a property manager is finding quality tenants to fill vacant properties. They thoroughly screen applicants by looking at factors like their rental history and credit score, calling their references, and even interviewing them to determine if they would make good tenants. This process ensures that properties are filled with desirable tenants who will take care of the space, make their payments on time, and generate a steady income for the owner. Management companies have extensive experience in triaging applicants and can easily spot the warning signs and red flags.
Shorter vacancy cycles
The owner does not make a profit if his property is not occupied. In fact, unless they own the property outright, during times of vacancy, homeowners generally have to make the mortgage payment out of their own pocket. When a property is occupied, rent from tenants can be used for mortgage payments or used as income. Property management companies take it upon themselves to market and advertise properties to the right audience and see that the vacancy is filled.
Better tenant retention
Tenant turnover requires additional time and money to clean, market, and fill space, all of which are costly for landlords. To avoid turnover and vacancies it is imperative to retain quality tenants. Property management companies serve as a point of contact for tenants and respond immediately to their needs. If there is an issue that needs to be addressed, it is their job to handle it, and they work hard to keep quality tenants satisfied. Property managers also handle lease renewals and are familiar with the market, so they know how to entice tenants to stay.
Payments on time
Landlords don’t make a profit if their tenants don’t pay their rent on time. It may seem innocent to overlook a late payment, but once a pattern of truancy is established, it can be difficult to break out of. Inconsistent payments can put significant financial pressure on a landlord who has to cover mortgage costs out of pocket. Timely rent collection is imperative for consistent cash flow. Instead of landlords facing awkward confrontations and repeated excuses, the property manager’s job is to collect rent on time and enforce the lease if payment terms are not met.
Instead of enduring the hassle, headache, and heartache that comes with owning, it makes sense to hire a property management company to deal with the unpleasant aspects of property ownership. No, their services are not free and yes, you do have to pay a fee, but the benefits in money and time saved are well worth it.
