Owning a property can be a rewarding experience, a solid 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. The property owner pays these companies to take care of the nuts and bolts associated with the property. A good property management company will take care of marketing the property, finding and screening 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 that 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 scrutinize applicants by examining factors like their rental history and credit score, calling their references, and even interviewing them to determine if they would make a good tenant. This process ensures that the properties are filled with desirable tenants who will take care of the space, make their payments on time, and produce a stable income for the property owner. Management companies have vast experience in classifying applicants and can easily spot 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 fully own the property, during vacant times, homeowners generally have to make the mortgage payment out of their own pocket. When a property is occupied, tenants’ rent can go toward paying the mortgage or used as income. Property management companies take care of marketing and advertising the properties to the right audience and make sure the vacancy is filled.
Better tenant retention
Tenant turnover requires additional time and money to clean, market, and fill the space, all of which is costly for landlords. To avoid turnover and vacancies, it is imperative to retain quality tenants. Property management companies serve as the 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 fix 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 it. Inconsistent payments can put a lot of financial pressure on a homeowner who has to cover mortgage costs out of his own pocket; the punctual collection of the rent is essential for a constant cash flow. Instead of landlords facing an awkward confrontation and repeated excuses, the property manager’s job is to collect rent on time and enforce the lease if payment terms are not met.
Rather than carry the hassle, headache, and pain that comes with being a homeowner, it makes sense to hire a property management company to take care of the unsavory 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.