Owning a rental property can be a profitable venture, but it comes with its fair share of risks, such as tenant disputes, structural issues, legal liabilities, and more. Enter a property management firm—a third party that provides professional services that mitigate the risks that come with the job. With their expertise, they can successfully navigate the complex world of rental property ownership, allowing you to maximize your returns.
In this article, we’ll explore how property management firms can lower the risk for property owners. We’ll delve into the various strategies they carry out to safeguard your real estate asset and guarantee that your day-to-day operations go without a hitch.
Bad Tenants
Property managers are aware that tenants can make or break their client’s rental business. For that reason, they conduct meticulous tenant screening processes, covering background checks, credit checks, reference checks, and more. Through these strict practices, they’re able to confirm that potential tenants are reliable, responsible, and will care for the property as if it were their own. By selecting the best tenants, they’re able to reduce the risk of non-payment of rent, disputes, evictions, and other renter-related issues. Their careful selection process ensures that tenants can help property owners reach their investment goals.
Discrimination
Property management companies are aware of the consequences of failing to follow the law, particularly the Fair Housing Act (FHA) and other non-discriminatory acts. To reduce the risk of discrimination claims, whether valid or invalid, they follow strict protocols when screening and selecting tenants. They make sure to treat all applicants equally, and offer the opportunity to rent to all—even if they may not meet the requirements. This way, they can maintain the property owner’s reputation in the industry, abide by all rental-related laws, and ensure that the property owner stays in business.
Property Damage
Inspections play a crucial role in maintaining a rental property’s condition. Carrying them out allows property management companies to spot potential issues early on, and address them promptly. This reduces the risk of costly repairs, saving the property owner a significant amount of money in the long run.
Furthermore, property management firms ensure that rental contracts contain clear provisions on the tenant’s responsibilities related to property upkeep. While tenants aren’t expected to do most of the tasks, they are expected to perform minor maintenance. By combining these two strategies, property management firms in Florida can actively ensure that the property maintains—or even improves—its value over time.
Renter Protection
Florida property management firms know that property owners aren’t the only ones at risk—their tenants are, too. That’s why most of them require tenants to have renter’s insurance, as the client’s insurance policy typically does not cover their tenants. This protects the tenant in case of unforeseen events such as accidents, and frees the property owner from personal liability claims.
Turnover
To maintain low turnover rates, property management firms in Florida strive to provide their tenants with the best possible services. To do this, they maintain ongoing communication with tenants, address repair requests in a timely manner, constantly strive to innovate, and forge good relationships with them. Their goal is to show tenants that they genuinely care, as this is key to reducing the rate (and risk) of turnover.
While good property management companies can easily secure tenants, they know that the cost associated with the process (e.g., marketing costs) aren’t worth it. They know that it would be better to invest in their current tenants’ experience and build on what they’ve already started.
Legal Compliance
Property management firms in Florida don’t just handle the day-to-day management of real estate assets—it’s also their job to help you abide by the law. When you choose the right property management company, you can benefit from having professionals maintain up-to-date records of all relevant data, such as contracts, rental collections, maintenance records, and overall managing your investment portfolio.
This ensures that you remain compliant with laws and local regulations, protecting you in case you need to present your records in the future. By diligently maintaining your records, property management firms offer you peace of mind, knowing that all of your rental-related information is available (and securely stored!)at all times.
Property Repairs and Maintenance
To reduce the risk of repairs, property managers enlist the services of reputable contractors with whom they’ve built long-standing relationships over the years. They’re tasked to oversee routine maintenance and make sure that the property remains in tip-top condition at all times.
By partnering with only the best in the business, property management firms in Florida reduce the risk of poorly-done work. They ensure that the work is completed to their standards, reducing the need for rework so they don’t spend their client’s money unnecessarily. With their network of experts, they can offer long-lasting solutions and reduce the risk of recurring structural concerns. Furthermore, they provide property owners with the reassurance that their investments are in trustworthy hands.
Financial Management
Collecting rent can be a challenging task. Some property owners may be tempted to give their renters more leeway than is reasonable. Property managers are aware that this leniency can put a property owner’s finances at risk, which is why they undertake all finance-related tasks, like rent collection, financial report preparation, and more. This allows property owners to have a full view of their financial situation, helping them make sound decisions and reduce the risk of money mismanagement. In addition, a property manager’s support ensures that rent is collected on time, all the time and that rent-related records are maintained.
Reduce Risk With Luxury Property Care
Hiring the experts at Luxury Property Care means you can mitigate the risks that come with your unique career as a real estate investor in Florida. When you choose us, we’ll create a comprehensive property management plan that aligns with your goals, and that’s designed to reduce risk in all aspects. Our goal is to get you the revenue you’ve always wanted while ensuring your renters are satisfied, your property is safe, and your practices are compliant with the law.
For more information on our Florida property management practices, call (561) 944 – 2992 or complete our contact form.
