Property management requires a lot of time, effort, and expertise — which some property owners are unable to provide. If you are a property owner who simply wants to enjoy the fruits of your investment, consider hiring a property management company. Though it may be an added expense, it’s worth the price as you’ll be able to reap all the benefits of property management.
What Are the Benefits of Property Management?
Buying an investment property is a major financial decision but it can also be very financially rewarding. All owners want their property to succeed as much as possible. However, not everyone has the ability or expertise to appropriately manage a property. Key responsibilities such as screening tenants, collecting rent payments, maintaining facilities, enforcing rules, and dealing with disputes can be a source of stress and headaches.
If you want to do away with all the hassle — but still protecting the value of your property — you should consider hiring a property manager. Here are the benefits of using a property management company.
1. Having Quality Tenants
One of the most tedious aspects of property management is finding and screening potential tenants. Property owners have other responsibilities so they do not always have enough time to properly vet applicants. As a result, you may end up with difficult tenants who do not pay rent on time, cause property damage, or create problems with other residents.
The benefit of having a property management company is that you can entrust the entire screening process to them. An experienced property manager will know how to weed out problematic tenants from your list of applicants. They also have a standard procedure that includes thorough background checks, security deposits, and other screening requirements. With a property manager, you’re more likely to have quality tenants that pay rent on time, follow rules, and get along with others.
2. Avoid Costly Lawsuits and Liabilities
A property management company can protect you from costly lawsuits and liabilities. For instance, a lot of owners are not familiar with federal, state, and local laws that govern rental properties.
Your actions could result in lawsuits involving wrongful eviction, not returning a tenant’s security deposit, and fair housing discrimination.
Property management companies have a solid understanding of landlord-tenant laws, real property laws, and contract laws. They will know how to deal with sensitive issues — and resolve them in a way that doesn’t involve the court system. Keep in mind that the monthly fee you pay your property management company is just a fraction of what you might spend on legal expenses.
3. Higher Tenant Retention Rate
Owners want their properties fully occupied so that it generates income and helps recoup the initial investment. However, this will be difficult if you have a high tenant turnover rate. There are many reasons why a tenant will leave, but maintenance issues are one of the most common explanations. Nobody will want to live in a property that continuously has clogged drains, pest problems, or leaking faucets.
Routine and preventive maintenance is one of the major benefits of property management. Your property manager will ensure that everything is running properly. They will also address minor maintenance issues before they become larger and more costly problems. If residents are happy with the state of the property, you will have a high tenant retention rate.
4. On-Time Rent Payments
It’s important to collect rent payments consistently each month. A large part of the income generated goes towards operating expenses. If you are not able to collect rent on time, the property may suffer. However, with so many other responsibilities, property owners may not have the time to personally collect each tenant’s rent for the month.
In this case, it’s beneficial to have a property manager collect on your behalf. A property manager’s sense of professionalism communicates to tenants that rent is non-negotiable. They must pay the expected amount on the expected date. Having a property manager can also act as a buffer in case there are issues with delinquent tenants and you want to proceed with the eviction process.
5. Competitive Rental Rates
Property management companies are always updated on real estate and rent trends. Thus, they are able to determine competitive rental rates for your property, as well as when it’s time to increase rent.
On the other hand, property owners may not be aware of these trends and end up collecting less rent than what the property is worth. If you want to increase the profit generated from your investment property, it’s beneficial to have a property management company that you can consult each year.
6. Lower Maintenance Costs
An experienced property management company will have worked with countless service providers over the years. Thus, they already know which companies can be trusted to provide excellent service. Having established working relationships can also lead to lower rates and discounts. In comparison, property managers will have to conduct research to find vendors with reasonable prices. And even then, there is no guarantee that they can provide the service that you are looking for.
If you want to save on maintenance costs, it can be beneficial to have a property movement company. Not only will they take care of your property, but they can quickly contact licensed professionals to handle any maintenance issue that the property might have. Since property managers have maintenance experience, they can also monitor the work performed by your vendors. Overall, a property manager can save you time and money, as well as give you peace of mind.
7. Increased Efficiency and Savings
As a property manager handles the day-to-day operations of your property, they can also streamline operations so that everything runs efficiently. If you have an organized system, it will be easier to keep track of residents’ concerns, issue work orders for maintenance issues, and schedule viewings for potential tenants, among others.
With streamlined processes, property owners will also eventually see an increase in savings. So not only does a property manager protect your property’s value, but they can also increase your profit over time. A property management company is well worth the additional investment considering all the long-term benefits to your property.
Personal Benefits of Property Management
Apart from the seven benefits mentioned above, there are many other advantages to property management. On a personal level, property owners will regain control of their time. They can focus on their personal and professional obligations as they are no longer at the beck and call of tenants. Property owners are also relieved of all the stress and headaches that come with the daily administrative, maintenance, and managerial tasks. All things considered, the benefits of property management outweigh the costs.
If you are looking for an HOA management company, a property management company, or a real estate agent, feel free to browse through our Florida Property Management directory.