There’s a reason why many rental property owners consider hiring a property management company: they make things so much easier. In this article, we go over the common reasons why working with a property management company makes the most sense. We also share the common roles that a property management company will likely undertake.
What Is a Residential Property Management Company?
Property management companies manage real estate investments such as residential and commercial properties, however, the former is more common. Their main role is to undertake the tasks that the landlord would otherwise have to do themselves, such as collecting rent, coordinating repairs, responding to complaints, and more. That way, the owner won’t have to do the heavy lifting. Plus, they bring their years’ worth of know-how to the table to guarantee that your residential rental property remains profitable for a long time.
What Are the Different Types of Residential Properties?
Residential property management companies manage a wide range of properties, including:
As the most common type of residential rental property, a single-family home is what its name suggests: it’s a home for one family only. It’s a standalone, so it doesn’t share any walls with other properties. This type of property is popular among people who want to stay for the long term. They can be found far from downtown life, which means tenants will have to get used to a longer commute. The advantage is that single-family homes are plentiful, so you won’t have a hard time investing in one. Plus, they’re cheaper than most property types, which is why many investors choose this as the first property in their investment portfolios. Managing single-family homes can also be easier compared to managing larger properties, as there are fewer tenants and less maintenance is required.
A multi-family home is a type of residential rental property that contains more than one unit. An example of a multi-family property is a small apartment with two to four units. In this type of property, the owner can choose to reside in one of the units while renting out the others or rent the whole property out. While more tenants mean more rental income, the main disadvantage of this real estate investment is that it costs more.
Condominiums and Townhomes
Condominiums and townhomes are similar to multi-family homes, however, they have a few shared features. For instance, it’s not uncommon to find a shared pool in a condominium community. As the square footage of these types of properties can come in the millions, they require more maintenance. For that reason, many owners choose condominium management services for their investment properties.
Why Hire a Residential Property Management Company?
At some point, you might have considered self-managing your investment property. There’s nothing wrong with self-managing but you must keep up to date with the secrets of successful residential rental owners to make your property thrive.
Do note that things will become more challenging as you add more properties to your portfolio. Ultimately, working with a property management company is the most logical choice. Here are a few reasons why you should consider partnering with a residential property management company in South Florida:
- You have too many properties on your plate. If you juggle too many properties at a time, you won’t be able to properly care for every property. Your management will likely be lacking. A property management company can guarantee that none of your properties are neglected.
- You have a 9-to-5 job. Running a residential rental can be a full-time job, so if you can’t commit to it, it would benefit you to get a property manager.
- You don’t live far from your rental. There will be times when you’ll have to deal with maintenance-related matters ASAP. But if you live far from your rental, it would be impossible to drive there at a moment’s notice. Fortunately, property management companies can be on-site to deal with problems in person.
- You don’t want to be involved. Want to reap the benefits of being a real estate investor without being involved with day-to-day management? Get a property manager.
- You’re new to the rental world. Renting out a residential property without any knowledge of rental laws, renter rights, etc. spells disaster. A property management company will have the know-how to guide you through the complicated world of rental real estate.
What Does a Residential Property Management Company Do?
Working with a residential property management company can be costly, but consider the advantages. For one, it’s a way of freeing up your time for things that matter to you. Additionally, you can delegate a wide range of tasks to your property manager – even the tasks that you don’t want to deal with such as evictions.
Below, we’ve broken down the common roles of a residential rental property management company. That way, you can see for yourself that ultimately, partnering with a property management firm is an investment.
- Screen Tenants. Residential property management companies undertake the critical tasks of sourcing and screening tenants. Since many of them are paid a percentage of the rent collected (not the rent anticipated), it’s in their best interest to find responsible and reliable tenants to fill any vacancies.
- Market the Property. To get the word out about your property, management companies will use a variety of marketing methods like listing websites (e.g. Apartments.com) and the Multiple Listing Service (MLS).
- Collect Rent. Collecting rent seems simple, but wait ‘til you have to do it. Tenants won’t always be able to pay their monthly rent on time.
- Set Rent. No one will want to rent with you if you’ve set a made-up rental rate. By working with a property management company, you can calculate the most reasonable rental rate that works for both you and your tenants.
- Conduct Preventive Maintenance. Investment managers know that preventive maintenance is the key to keeping repair costs low.
- Perform Repairs. In case a tenant requests repairs, a local property management firm can respond to their concern immediately. Dealing with repairs swiftly is one way to boost tenant satisfaction and encourage lease renewals.
- Handle Disputes. There are bound to be disputes between tenants, especially in a multi-family property. Property management companies are trained in conflict resolution and can help tenants come to a compromise.
The Bottom Line
You don’t have to spread yourself out too thin to run your rental property. By working with a property management company, running a rental will be a walk in the park. Consider partnering with the experts at Luxury Property Care. With our years’ worth of expertise, we can guide you through the risks involved in real estate investing, and guarantee that your property stays profitable for the long term.