A property management company handles all aspects of renting a property to tenants. That includes marketing and filling vacancies, managing tenant concerns, collecting rent checks, handling repairs, and even initiating evictions.
The decision to hire a property manager can be difficult. Whether you are moving out of your family home or are an investor with multiple properties, breaking free from the idea of DIY property management can enable you to maximize your financial gain.
From late night emergency maintenance calls to staying up-to-date and current on your taxes, here is a general list of what a property manager could do for you:
Market your rental property to minimize vacancies and maximize income.
A property manager can use social media, local newspapers, websites, and property listings to make sure your property always has tenants.
Fill vacancies with qualified tenants.
A qualified tenant is a someone who passes a statewide and nationwide background and credit verification, and also has good references from current and past landlords and income verification from employers.
Perform maintenance on your rental property.
Keeping a property in good condition not only benefits your tenants, but maintains the overall value of the home. Pictures and reports will keep you up to date on the condition and property needs.
Have an in-house team of maintenance technicians on call.
Having a team of plumbers, electricians, appliance repairmen, snow removal companies and lawn care companies, among many others, ensures routine maintenance and emergency repairs can be done in a timely fashion by someone you trust.
Negotiate leases and maintain proper record keeping.
Stop scrambling to fill properties with tenants. Ensuring that, upon expiration of a lease, the current tenant has the opportunity to sign a lease extension, will help to improve tenant retention and keep good tenants in your property.
Collect rent and security deposits, and maintain tenant relations.
No more using your personal time to collect checks and make deposits. A property manager works directly with your tenants to ensure rent is paid on time and in full. They also handle tenant compliance issues through periodic walks and a condition management system.
Ensure all activities comply with all federal, state, and local laws.
Many DIY property managers don’t have time to learn all of the federal, state, and local laws protecting both owners and renters. Move out walk and security deposit dispositions can be hard to navigate on your own. Don’t get into a situation with expensive legal consequences!
Keep a record of all income and expenses for a property on a monthly and annual basis.
Renting out a property is like owning a small business, all incomes and expenses must be tracked, reported, and taxed by the IRS.
Report property status updates.
It’s important to keep track of expected vacancies to plan for marketing and re-renting your property. A property manager will handle the expected time frame of a vacancy and any necessary maintenance needs of the property to ensure the asset is protected and to maintain tenant retention. A property manager is also up to date on market data, ensuring you get the highest rental rates for your property.