Are you considering hiring a property manager? If you own a rental property, property management companies can help you to look after your investment by handling everything from sourcing tenants to the administrative side of investing in real estate.
However, not all rental property owners understand the advantages of hiring a property manager. There is a chance you could be missing out on a number of unique time and money saving perks. So, let us discover 3 benefits of using a property management company to take care of your rental property.
Rigorous Tenant Screening Processes
If you do not have sufficient experience in the real estate industry, then choosing the right tenants for your rental property can seem like a daunting task. Far too often rental property owners realise that they have chosen a bad tenant too late. It can be incredibly difficult to remove a difficult tenant on your own. With this in mind, property management companies can make use of reliable and verified screening processes that can help them to select long term tenants that are capable of paying their rent on time and are willing to commit to minimising wear and tear of your property.
More often than not, property management companies have been established for a long period of time and have therefore seen enough tenant applications to identify the best possible options while spotting any potential red flags. By hiring a property manager, you can also avoid any of the potentially devastating rental scams that are currently taking the real estate industry by storm. Additionally, property managers are also well equipped to help you to avoid any time-consuming or expensive discrimination lawsuits. Given these points, hiring a property manager can enable you to avoid most common pitfalls associated with rental properties.
Lower Maintenance and Repair Costs
Keeping up with any maintenance is crucial if you want to keep your tenants happy. Not only does carrying out any necessary work on your property protect the value of your assets, but it massively reduces your risk of encountering any costly repairs in the future. When hiring a property manager, you gain access to the leading licensed and insured contractors. Property managers work with contractors on a regular basis. Therefore rest easy knowing that any work being carried out is of excellent quality at the best possible price. Finding a trustworthy contractor is not always easy. So if you are new to the world of rental properties, a property manager can point you in the right direction.
Some property managers are even able to secure exclusive discounts on the basis of the volume of properties that they manage and so you might be entitled to a big saving. Furthermore, property managers can carry out checks and inspections which involve written schedules and detailed documentation. By identifying and repairing issues, some agencies even offer valuable feedback and suggestions for any property upgrades or modifications. If you are particularly fortunate, this could even have a positive impact on the investment potential of your rental property.
Shorter Vacancy Periods
When you hire a property management company, one of their primary goals is to make sure that your property does not stay vacant for too long. If a property is uninhabited you are unable to draw an income from it. Therefore you might actually end up losing money when trying to cover the costs of any utilities or insurance. Consequently, a property manager can help to prepare your property for rent. Not only can they identify any cosmetic improvements in order to maximise your revenue, but they can also determine an optimal rent rate.
When trying to rent out a property on your own, you run the risk of setting your rent too high and this can deter potential tenants. Alternatively, if your rent is too low, you might be missing out on profit.
Determining the right price for your rental agreement requires:
- A blend of knowledge about the local real estate market
- Data from similar units
- Access to professional rental rate tools
All of which are widely used by property management companies. Moreover, it is also no secret that a property manager is well equipped to market your rental unit effectively, and so working with a real estate professional gives you a great chance of getting your property occupied as soon as possible.
Ultimately, by hiring a professional property manager you can add continued value to your rental property investment. While managing a property on your own can be rewarding, it is highly likely that you could be missing out on some of the time and money saving strategies that working alongside a team of experts from the real estate industry can provide. Above all, there are plenty of fantastic property management companies out there. Do not be afraid to look around to find the best one for your needs.
Are you looking for more real estate rental tips? Check out this article for some key things to remember when getting a property ready to rent.