“Property Management Services That Landlords Should Consider Utilizing” written by Mike Marko.
Are you having a hard time managing your rental property business?
Many property owners give up their rental property business because they can’t handle the stress of being the property manager. Think of the man hours and effort it requires from choosing the right tenants to the process of moving out. And while you’re doing this, you also need to be attentive to your tenant’s needs and complaints.
Luckily, there’s property management services that landlords should consider utilizing. In this article, we will talk about why you need this services and what it can do for your rental property business.
Different Property Management Services
When you are looking to use a property management business you’ll need to determine the level and amount of services you want or can offer investors or property owners while managing their rental properties. There are hundreds if not thousands of different property management firms in each State so there is constant competition between property management companies in finding and managing rental properties.
When investors are looking to find a property management company to manage their investments, the type of services offered could be the deciding factor in choosing. Every property management company will offer different services in managing rental properties. Some companies will only offer full service everything included packages where all things involved with managing the property is included in their service. Where as other property management companies will offer level of service packages and each rental property and investor is treated differently according to investor or property owner determined services.
However, before we talk about the different services offered by property management companies, let’s first discuss what a property management company is…
What Is Property Management
Property management refers to the process involved in managing property that is available for lease. Examples of the tasks and duties of property management company are maintaining and handling all the day-to-day activities that are centered around the real estate or rental property that is set for rent or lease.
Here are the common duties of a property manager in a rental property business.
- searching for tenants who will rent out the property,
- advertising of the rental unit to potential tenants,
- collecting monthly rental fees,
- maintaining the property as a habitable place to live in,
- doing necessary repairs when needed
- keeping the property rented and making profits for property owners
Almost every property manager handles the duties above and is responsible for producing and managing important paperwork and rental documents. They also foster all tenancy and vacancies for the landlord.
When buying or investing in rental properties, an investor is sometimes ill equipped or unwilling to become a property manager for the properties they are invested in. Often times an investor has tried and been overwhelmed managing the properties they own and are looking for experts to take over the managing of those properties.
In any case, let’s look at the main reasons you would want or need to hire a property management company to manage your rental properties.
Should You Hire A Property Management Company?
The biggest and most common reason an investor would hire a property management company to manage their rental properties is time. Time managing, time learning to manage and time lost managing instead of focusing on investing are key issues when talking about time to manage property rentals. As the property investor you should consider getting help from the experts to expect better results on your rental business.
Getting An Expert
The most obvious experts in property rentals is a property management company. When employing a property management company to run and manage your property rentals you are hiring a company that will allow you to do other things instead of worry about the day to day operations and profits of your rental properties.
Not having to take your time and effort in performing the tasks and duties of managing a rental property business allows an investor to focus on what they do best and that is investing in properties to make a profit.
Reasons For Getting A Property Management Company
Here are the common reasons why a property investor hires a property management company:
- They have lots of rental units.
- They live far from the rental property.
- They’re not interested in hands-on management.
- They have limited time.
- They have the budget for hiring one.
- They became overwhelmed with management tasks.
- They don’t want to be an employer.
- Their rental property is part of an affordable housing program.
Usually, property management companies will handle almost all of the task and duties of a property management while creating a profit for the property owner.
Should You Do Property Management For Your Own Properties?
Here is a key point to consider when deciding on hiring a property management company or deciding to do the management of the property on your own.
As an investor you may not be trained or willing to perform the needed management of rental properties. You could most likely be time stressed because of your responsibilities, duties, and tasks as the property manager are never ending…
Perhaps, that’s the reason why you’re reading this article.
Doesn’t it make the most sense that instead of stressing out or being drawn into managing properties that you should hire a company or an expert or a company that does this for a living?
There are unlimited choices in most areas when considering hiring a property management company to manage your property rentals. Having so many choices might cause you to have doubts about getting help from property management companies. One of the main questions an investor needs to ask themselves is can a property management company do the best job maintaining your property while helping you make a profit on your property?
Property management services are a proven management model for rental properties that allows you to pay a cost to manage your properties allowing you to do other things like investing more into other real estate. When deciding on hiring a property management service let’s look at the services they can offer and why it would be a recommended option in most rental property investments…
Primary Property Management Services
Property management services are all services or responsibilities performed when managing a rental property. Most property management services include a primary package of options and can customize their services according to property owners needs and desires. When expanding or starting a property management service you should be looking for properties to manage and how you can offer a package that will entice property owners and investor to use your services over other similar companies.
A rental property business receives a lot of inquiries if they are able to manage a rental property efficiently while making a profit on the property through phone calls, texts and even emails.
The success and profitability of your property management business relies on the tenants that you’re going to accept in your property. So as a property manager, how can you manage other aspects of your business if your attention is only focused on choosing the right tenants?
Property management services are set up to develop tenant screening, advertising for tenants, and managing tenants and rental properties. Most property management services will offer property owners a way to do a full and proper tenant screening on anyone applying for rental of the property. Most property management companies offer ways to check the applicant’s background while screening the tenant’s credit, criminal history, rental history, and ability to pay the monthly rent regularly.
Lease agreements, rental contracts, or other legal documents will also be handled by the property management company. Performing supporting services in accounting, taxes, and tenant management are key reasons to use a property management service. As the property owner you will be free from maintaining necessary records for tax and legal purposes as the property management company you hire will do that for you. Other tasks such as mitigation and remediation regarding any maintenance issues or property upkeep and/or renovations can be handled by a property management company depending on your desired needs when signing a contract to manage your properties with a specific company.
While a property management company handles every tough tasks and duties, you could use your free time on focusing on other aspects that would help you improve your business.
Here’s what property management services can do for your business…
Tenant Screening Services
A good property management services has the ability to find and select good tenants and normally have established ways to avoid discrimination of tenants during the tenant screening process. The company knows how to handle prospective tenants because they know the consequences of an unfair tenant screening process.
The property management company verifies the information on an applicant’s rental application form during a tenant screening process. During this process, the company will easily filter the good tenants away from the bad tenants.
If you want to know how a property manager does these tenant screening services, you can read about it here: Tips For Choosing The Right Tenant.
Handles Leasing Issues Properly
The rental lease or rental contract is the legal document that will manage the tenant and detail the terms and responsibilities of all parties during the rental of the property. Managing and making sure that the lease is followed is a major responsibility of a property management company. When you are looking for a good property management services it is best to choose the company that prioritize the value of your rental property and has a proven track record in managing rental leases for tenants.
One of the biggest responsibilities of managing a rental lease is for the property management service to ensure that the property has no damage and that the property is habitable for any tenant moving in or living at the property. Commonly a property management company will do an inspection before the new tenant moves in ensuring that the tenant is satisfied and happy in the property they are renting.
When managing the lease agreement it is the property managements companies responsibility to inform the new tenant about the rules that are needed to be followed throughout the lease term. A good property management company has expertise when it comes to numerous complaints and managing the lease agreements.
The best property management companies have established systems to cover tenant needs including repairs and maintenance…
Repairs And Maintenance
A good property management company have a system for tenants to request needed repairs. The system will help facilitate the company receiving reports about repairs easily. The system will then make it easy for the property management company to respond with their preferred contractors and vendors to do the necessary repairs.
Handles Move Out Process Of Tenants
A property management company will keep track of the tenant move-out dates. Then a month or two before the expiration date of the lease agreement, the company will talk to the tenant and negotiate their extended stay on your behalf.
If the tenant decides to move out, the property management company will conduct move-out inspections to determine if there are any damages to the unit. They will then manage the return (if any) of the damage deposit.
Handles Eviction And Dispute Resolution
If you have a rental property business, hoping for the best should be a part of your motto. But of course, even with that positivity, it’s important that you also prepare for the worst. A property management company have a documentation of all aspects of every tenant’s tenancy and written policies. This helps with any potential evictions, and provide substantiation for your side in any disputes.
Marketing the rental units
A property management services handles the marketing the rental units to parties who are interested in renting the property.
In this case, the property management company will do the best they can to expose your property to a large number of prospective tenants. They will work to secure those possible renters to rent the home.
A good property management services can promote your rental property even if it’s not in a popular location.
Professional Management Of The Rentals
Last but not least, the company will provide a professional management of the rentals. They will interact with both the tenants and the landlords.
They will treat each tenant and the owners with respect and professionalism. Expect the property management company to respond to the tenants’ needs. Their goal will to ensure that they keep tenants in the home, while maximizing the profitability of your property.
Final Thoughts On Property Management Services
Being a property owner and manager is challenging. A rental property business requires a lot of time and patience from you. Many rental businesses have failed because of the time and expertise that is needed, and that is why property management services are needed.
This blog post covered the different services that are done by a good property management company. Those services range from choosing the right tenants to the process of moving out to marketing your business. The right company can make a huge difference in your long term profitability.
Please feel free to comment below with your questions or ideas about property management services.
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