A property management company can help you by collecting rent and making sure that each tenant pays his or her due in full and on time. However, did you know that there are many other ways a good property manager can make being a landlord as painless as possible? If you are on the fence about hiring a property management company, here are some of the numerous tasks they could help you with.
Dealing with relationships with tenants
First and foremost, a property management company acts as a buffer between yourself and your tenants. No more pesky phone calls about grievances and broken appliances! You can turn your phone off or leave for a well-deserved vacation without worrying about your property. From the daily running operations to the least savory tasks, like handling a problematic tenant, a property management company keeps you off the loop and often has a 24/7 answering service to deal with emergencies.
Besides, tenants are less likely to appeal to your compassion or make excuses as to why the rent is late when dealing with a professional organization. Renting out a property should be treated as a business, and a property management company will make sure that everything is handled professionally.
From the wear and tear that comes with tenant occupation to emergencies and regular building maintenance, a property management company will keep an eye on your property. They can organize routine inspections to make sure that a small problem doesn’t become a big one due to deferred maintenance.
If something requires specific expertise, they have access to an extensive network of vetted tradespeople. Vendors will most likely do their best to stay in the good grace of a company that can offer them a steady stream of work. Your property manager will be able to oversee the necessary work. They will also be most likely to get it done cheaper than what it would cost you as an individual.
A property management company also deals directly with all the personnel, such as the concierge, maintenance, and security personnel if needed.
Bookkeeping is one of the least glamorous yet necessary tasks of being a landlord. As you own more and more properties, you will need to keep track of which tenant paid, which one did not, and will have to remind them of their dues. You will also need on keep an eye on the expenses related to each building. Your company management company can provide you with a clear report that will allow you, at one glance, to know how your property is doing. They keep thorough records with the information you may need down the road, including all income and expenses. It includes the list of all inspections, signed leases, maintenance requests, any complaints, records of repairs, costs of repairs, maintenance costs, the record of rent collection, and insurance costs.
Taxes can be a nightmare of their own, but being a landlord comes with various fiscal perks, including write-offs and deductions. However, to take advantage of these, you need to know what they are and how to present them in your tax report. Filling taxes can be a time-consuming process, but it is yet another thing your property manager can take care off for you.
Maximizing your revenues on your investment portfolio
Some landlords think that property management companies are expensive and want to try the Do It Yourself route. However, owning an investment property is a time-intensive business. Unless you are ready to make it your full-time job, hiring a property management company is well worth the money. It is particularly true if you own several buildings, or if you leave far away from your properties.
A good property manager knows all the ropes to make each property as profitable as possible. They are up to date with the latest real estate trends and can guide you to get the most bang for your buck. It includes the optimal amount you should charge for rent, but also where you should invest next.
Being a landlord necessitate an extensive knowledge of local, statewide, and national laws regarding your duties and obligations towards your tenant, building safety code, and so on. If you make a mistake because you are not aware of the law, you expose yourself to a potentially financially and mentally draining lawsuit. Fortunately, property management companies can help you with all legal aspects of real estate investing. They can also go to court for you if needed.
Dealing with a bad tenant can quickly become a nightmare. It is hard to stay emotionally detached when your property and your livelihood are endangered. However, any mistakes could put you in a difficult situation. If you need to take the steps necessary to evict an undesirable tenant, you will need to follow the law to the letter. A property management company can take care of the eviction process professionally if necessary.
Finding the best tenants
Your experience as a landlord depends in large part of the quality of your tenants. Finding someone willing to rent your property, take care of it, and be current on the rent can be a numbers game. Property management companies are well-equipped to find the best candidate as rapidly as possible so that your vacancy rate stays low. They can run the credit score and background check of potential renters quickly, show the property promptly and prepare the transition from tenant to tenant more efficiently than an individual owner can.
There is a lot more to property management than simply collecting the rent. A good property management company can be an invaluable partner as a landlord. Take a look at the services we offer and don’t hesitate to get in touch with us with you have any questions.