One of the best ways to grow your wealth is by investing in real estate. However, if you have other commitments, you may not be able to run your rental efficiently. That’s why many property owners choose to hire a property management company. But the question is, who can meet your rental’s requirements? The answer: a firm offering full property management.
Property Management Options for Landlords
Most property management companies will have two options for rental property owners:
Partial Property Management
Are you the type of person who wants to be a bit involved in the day-to-day management of your rental property? Partial property management is your best bet, as you’ll be able to do most of the landlord-related duties. Meanwhile, your property management company will deal with the to-dos you don’t want to do such as collecting rent, conducting repairs, and so on. You’ll have responsibility, but you won’t be on your own.
Partial property management is a great choice for property owners who have experience in a certain field – for example, if they’re CPAs, it would make sense for them to deal with accounting.
Full-Service Property Management
Let’s say you don’t want to be involved – not even a little bit. With full-service property management, you can delegate all of your to-dos to your agent who will handle everything for you. That way, you can be completely hands-off. You can count on your manager to put your property in front of potential tenants, collect rent for you, and ultimately, make sure your property makes money in the long run. And since property management agents have been in the business for a long time, you can have peace of mind, knowing that they can navigate the ever-changing market.
Which Should You Choose?
Torn between the two? We’ll choose for you: opt for full-service property management. If you’re wondering why, ask yourself what your investment (that’s likely worth millions of dollars, if we might add) truly deserves. Do you want to risk managing it on your own when you don’t have the expertise that property managers have? Or place your property in the hands of professionals who can handle anything you throw at them? If you ask us, the second one is the safer (and more logical) choice.
Why You Should Choose Full Property Management
Not convinced? Below, we break down the main reasons why full property management is non-negotiable.
#1 It Saves Time
One of the main reasons why you should go for full-service property management is that it saves time. Many landlords can’t commit 100% of their time to their rental properties, especially if they have multiple real estate investments spread across a variety of locations. Working with a property management company that does it all means someone else can do the “landlording”. You can free up your time to focus on other commitments (such as your 9-to-5, for example) or to expand your portfolio.
#2 It Guarantees Legal Compliance
You’re going to need to read (and understand) the law if you don’t want to pay crippling fines and end up in lawsuits. It’s a must if you want to remain in business. But here’s the thing – the law is ever-evolving. If you don’t take the time to stay up-to-date with the ins-and-outs of the law, you’ll find yourself in trouble. Professional property management firms are well-versed in the law, which means they can steer you out of any pitfalls. They’ll be on the lookout for “tweaks” in the law so that you’ll always stay compliant, and in return, your tenants will be complaint-free.
#3 It Creates a Solid First Impression
When tenants “window shop” for a rental, they consider whether or not a particular property comes with intangible features. One of the features they’re looking for is good communication with the owner and/or property management agent. When you’re represented by a well-known company, you’ll be able to show to your potential tenants that you’re taking things seriously. Partnering with a property management company is a sign that you don’t consider landlording to be a “side gig”, but a full-time responsibility.
When your potential tenants see that professionals are in charge, they’ll be more comfortable to rent with you. They know that compared to self-managing owners, full-service property management firms have tried-and-tested policies in place.
#4 It Prevents Tenant Turnover
Full property management companies are expert when it comes to meeting your tenant’s expectations. For one, they’ll always be available to deal with tenant complaints and concerns, as they’re aware that the rate of response can contribute to tenants’ satisfaction. They’ll also recommend property improvements that will not only boost property values, but also motivate tenants to remain with you the long term. What’s more, they can calculate the ideal rental rate – one that’s low enough to get tenants to rent, but not too low to the point where your cash flow suffers.
#5 It Makes Evictions Easier to Handle
Evictions are time-consuming, not to mention costly. Unfortunately, evictions are inevitable – even if you screen your tenants strictly, you’ll still have some troublesome tenants. By working with a full property management firm, you can save yourself from the time and stress you’re bound to feel when dealing with evictions. They know eviction laws like the back of their hand, which allows them to handle them without any hitches.
#6 It Ensures Timely Rent Collection
When your tenant doesn’t pay their rent on time, you’ll often have to run after them (literally). If the thought of that sounds exhausting to you, it’s a good idea to get an expert property manager. Not only will they collect rent, but they’ll also charge a fee to discourage tenants from doing it again. Full property management agents can also arrange a payment plan for tenants who aren’t doing so well financially. They often do this to avoid losing responsible tenants – the rent may be late, but oftentimes, that’s better than having to replace good tenants.
Experience Full-Service Property Management for Yourself
Hiring a full-service property management company means you can experience all of the advantages listed in this article – and more. At Luxury Property Care, we help rental property owners such as yourself with day-to-day property management and maintenance. Through our expertise, you’ll get to see with your own eyes what all-around property management is like. We aren’t exaggerating when we say we have full-service property management. We’ll handle it all, down to the tiniest detail.