So, you’ve invested in your first rental property – now what? As a landlord, you’re supposed to maintain your property (to preserve and improve its value) and tend to your tenants’ needs (to prevent turnover). It all seems easy, but the reality is that most landlords don’t have the time to deal with these matters, especially if they own more than one rental, or have more than one tenant.
If you’ve found yourself in that position, what you can do is partner with a professional property management company. They provide property owners with convenience in overseeing their property’s day-to-day demands, and ensure that no issues – whether property-related or tenant-related – have the opportunity to arise. Property management companies are the key to keeping a property well-maintained and profitable for as long as possible.
In this post, we’ll be talking about the kinds of services provided by property management companies. That way, you can have an idea of what you can expect when you partner with real estate experts.
#1 Screening Tenants
One of the most critical aspects of running a rental is renting to the right tenants. Rent to the wrong tenants, and you will end up with people who won’t pay their rent on time, probably break their lease, and be a disturbance to other tenants. Property management companies understand this (they don’t want to deal with problem tenants, either), which is why they follow a meticulous tenant screening process.
They’ll consider the applicant’s past tenancies to find out if they caused any issues with their old landlord. They’ll also contemplate the applicant’s income to see if they can pay their rent on time (and if they can pay at all). What’s more, they’ll check if the tenant has a criminal record, as they may pose a risk to other people.
Perhaps what makes professional property management companies so valuable is that they’re well-versed in the law. For instance, they’re aware that the Fair Housing Act (FHA) discourages them from doing things that may be deemed discriminatory during the tenant screening stage. Rental property owners don’t always possess this knowledge, putting them at risk of legal prosecution.
#2 Marketing the Property
Property managers know how hard it is to market a rental property, particularly in oversaturated areas. Based on Census Bureau data, there are more than 20 million rental properties in the U.S. – and while some of them are currently occupied, most of them surely aren’t. This means that your property has a ton of competition.
Fortunately, property managers have been in the business for a long time, meaning they know the best practices in marketing a range of rental properties. Your property manager can successfully show your property off to the right people, as well as focus on its main features. They also know what your tenant pool would want, whether it’s stainless steel appliances, smart appliances, or other modern amenities.
When you partner with a property management firm, you’ll be able to benefit from their access to popular listing sites. This will raise your rental’s exposure – and since more people can see it, you can expect it to be rented out in no time.
#3 Collecting Rent
Collecting rent is a routine task that landlords don’t like to do. Sure, it means they’ll make money, but the task is easier said than done. Not all tenants will pay their rent on time, which means that property owners will literally have to chase them down. If you don’t have the time (nor the patience) to do this, you may want to partner with a property management company that’ll collect rent for you.
Not only that, but property management companies can also establish your property’s ideal rental rate. Once they study the current rent prices, they can set a competitive rate so you can make the most amount of money. Remember, a rental rate that’s too steep can discourage tenants, however, one that’s too low can put you at a disadvantage.
#4 Performing Maintenance
One of a property management company’s primary responsibilities is to conduct routine maintenance. With their care, they can keep the property in tip-top shape, and in turn, lower the chances of costly repairs. Staying on top of maintenance is also one of the best ways to stop tenants from feeling that their concerns are being neglected.
Bear in mind that maintenance will take up most of your time. If there’s a problem with your property, it will be your responsibility to deal with it as the landlord. But by partnering with the pros, you won’t have to tend to it yourself – instead, your property manager will delegate a third party to do it. They have their own network of vendors whom they can count on to conduct maintenance with minimal supervision.
In addition, property management companies regularly conduct inspections to spot potential issues and ensure the property stays in pristine condition. That way, they can nip any problems in the bud before they can worsen.
#5 Handling Evictions
One of the most challenging parts of being a landlord is dealing with problem tenants who’ll have to be evicted. The eviction process can be long and complicated, and if you aren’t familiar with the law, the tables can turn and you will be in legal trouble. Professional property managers often have in-house lawyers who will deal with eviction-related matters the proper way. They’ll be able to follow all of the steps and provide the court with the appropriate documents to “prove” that the tenant truly does deserve to be evicted.
Furthermore, once the tenant has been evicted, they won’t waste any time replacing them. They know that vacancies are your worst enemy, which is why they’ll get the property rent-ready again and find you a worthy replacement.
For Professional Property Management, Call Luxury Property Care
If you own a rental property in South Florida, partnering with the experts at Luxury Property Care can provide you with convenience. When our property managers get to work on your property, you can guarantee that your rental, whether it’s a single-family home or multi-family, will always be well-managed, and that it’ll keep making money. Delegate your to-do list to us and find the freedom (including financial freedom) that you deserve.