There may be pride in managing your own rental property, but the reality is it isn’t that simple. Self-management may work for some people, but if you don’t live near your rental property, can’t devote your days to the task, and you don’t like to be hands-on, it may not be the most logical way to do things. Managing your rental by yourself simply isn’t practical, especially if you plan to add more properties to your portfolio, or if you’re already managing multiple properties.
Hiring a property management company can save you from the headaches that come with your role as a landlord. While it does come at a cost (most property management companies 10% of the collected rent), you will be able to save time and money in the long term. Below, we go over the reasons why it’s worthwhile to partner with a professional property management company.
#1 Screening Tenants
From credit checks to criminal record checks, a professional property management company will make sure that your tenants undergo their tried-and-tested screening process. Their goal is to get you tenants who will abide by your rules and regulations but will care for your property as if it were their own. When you avoid problematic tenants, you won’t have to deal with evictions down the line – a process that can cost up to thousands of dollars. And since property management companies get paid a percentage of the rent, it’s in their best interests to source people capable of paying on time, every time.
#2 Set the Right Rental Rates
A professional property management company will study the market to determine the ideal rental rate. It’s crucial to set the right rental rate as one that’s too high can deter tenants, while one that’s too low won’t result in good cash flow. What’s more is that the wrong rental rate can increase your investment’s vacancy rates, which is something that any good property management company would want to avoid. With that in mind, they’ll do their due diligence to set a competitive rate that can attract a vast pool of prospective renters.
#3 Collect Rent on Time
The timely collection of rent should be one of your main priorities – without it, your cash flow won’t be consistent. When you work with a High skilled property management company, you can rest assured that your rent will be collected on time, every time. But that’s not all – they will also make your rent collection methods more convenient for your tenant base. They’re aware that complicated payment methods can discourage tenants from paying on time, so they’ll go set up multiple rent collection systems through property management apps and tenant portals.
#4 Promote your Property via Proper Marketing Strategy
An expert property management company brings the best marketing practices to the table. Not only will they implement common marketing tactics such as posting on sites such as Apartments.com, but they’ll also make sure the property is shown in its best light. Plus, they know who your market is and can “tweak” the property in a way that suits their preferences. By combining their marketing efforts, they’re able to attract and find tenants fast, and ultimately, shorten your vacancy periods.
#5 Maintain Tenant Relations
When you avail yourself of the services of a professional property management firm, you’ll be able to create a “point of contact” between you and your tenants. That way, you won’t have to deal with tenant-related issues on your own (you no longer need to answer calls in the midnight!). Among the many things they’ll do is intervene when tenants are in conflict with one another, deal with complaints, and attend to maintenance concerns. And as a representative of you, companies assigned property manager will form long-term professional relationships with tenants, as this is one way to retain tenants.
#6 Manage Vendors
Building a network of reputable vendors can take up most of your time. Not only will you have to vet every single one, but you’ll also have to work on your relations with them and negotiate to get the best deals possible. When you partner with a company, you won’t have to source and vet vendors yourself; they’ve already been vetted. Furthermore, they will coordinate with vendors for you as well as relay any of your instructions. In case of emergencies, they will also have a list of “plan B” vendors whom they can count on at a moment’s notice.
#7 Conduct Preventive Maintenance
As a rental property owner, you’ll not only want to rent out your property – you’ll also want to preserve its value. To do this, you have to invest in preventive maintenance. If you don’t have the time, you can outsource your tasks to a full-spectrum property management company that can take care of everything from simple tasks like mowing the lawn, to more tedious tasks like inspecting the roof.
Preventive maintenance not only protects the structure itself, it also prevents costly repairs in the future. Tenants are also more likely to stay for the long term if you take maintenance seriously.
#8 Deal With Repairs
Even if you rent to the most responsible people, you will still have to deal with repairs at some point. If you can’t say with certainty that you can devote your time to dealing with repairs, consider hiring a property management company. Tenants can contact them instead of you, meaning you don’t need to deal with rental-related matters 24/7.
#9 Ensure Compliance With the Property Law
An aspect of property management that is often overlooked involves one of the most vital parts of any real estate investment: the law. To ensure complete compliance, you must partner with a company that’s well-versed and up-to-date with real estate law on a local and national level. This can save you from long-drawn-out (and not to mention costly) lawsuits over things that could have been avoided. That’s why you need to hire a professional property management company to handle all the legal issues.
For Expert Home Management, Contact Luxury Property Care
Ultimately, the many benefits of professional property management outweigh what you’re most worried about: the cost. When a property management company helps you run your rental, you can rest assured that they know what they’re doing. Remember, a property management company can give you something that money can’t buy: peace of mind.
If you’re in need of a manager for your South Florida rental home, get in touch with Luxury Property Care’s real estate experts. Call (561) 944 – 2992 or complete our contact form to learn more about our home management services.