There are many advantages of property management. Property managers are knowledgeable about the local real estate market and know how to price properties for maximum rent. They evaluate the features of each property and determine a competitive rent price. They also keep track of tenants, repair costs, and property values. The benefits of hiring a property manager go far beyond maximizing profits for landlords. But how can you tell which type of property manager is right for your needs? Here are a few things to consider when hiring a property manager.
– Hiring a property manager can save you a lot of time and hassle. Property managers are not your employees and don’t have to deal with the legalities that come along with hiring tenants. Property management companies are independent contractors, unlike property owners who are employees. This helps them focus their marketing efforts on families and multifamily units with the best possible results. A property manager can also help you to get better rents and higher occupancy rates.
– Tenant screening. In addition to conducting an initial screening of applicants, property managers conduct a complete background check on tenants. They can use objective criteria to determine a prospective tenant’s ability to pay rent. They may perform a credit check, employment verification, or criminal background check. Moreover, they can perform periodic assessments to ensure that the property is well-maintained. All of these factors can make or break a landlord’s profits.
– Tenant and Lease Tracking. Property management software systems are great for keeping track of important information on residents. It can automate the leasing process from prospect to move out. It also helps maintain the property and ensure that tenants are satisfied with the homes they are renting. Maintenance management systems enable tenants to submit work orders, and landlords can assign work schedules and assign maintenance work orders. Finally, accounting and reporting can help you track rent payments and lease details, generate reports, and manage financial records.
– Fees. Most property management companies charge a new lease fee to cover marketing costs and background checks, while some skip it. Other fees include maintenance costs, which some property managers charge as a percentage of rent or as a flat rate. In addition to these fees, property management fees can be as high as 10 percent of rental revenue. Choosing a property manager who charges an appropriate percentage of rental income can be a good decision for landlords who want to focus on running their businesses rather than worrying about the tenants’ comfort.
If you have only a few properties to manage, hiring a property management company will give you the peace of mind you need to focus on other aspects of your business. You can continue to be involved in the rental process and communicate with your property manager regularly, or you can simply leave the day-to-day management to a professional property management company. With an experienced team on your side, your investment is safe, stable, and profitable. A property manager will help you grow your business without the hassle of dealing with tenants and a broken dishwasher.