For real estate investors, it’s hard to choose whether they should use or not a property management company. Some investors can’t imagine investing in real estate without the help of a property management company. Others, however, struggle to do all the tasks from managing to maintaining themselves. To decide, Do I need a property management company or not, you should ask yourself questions like “What does a property management company do?”. It will be a fair decision if you first know what these companies do for landlord property management. Through this article, you will get to know all about the property management company. So let’s get started.
What Is Property Management?
Property management is the work in which a landlord or property management company is responsible for maintaining a residence’s rental status and appeasing its occupants. Generally, real estate investors hire property managers to oversee the daily operations of their property and deal with any query or concerns the tenants may have. If the property is vacant, it’s the property manager’s job to fill the vacancy with the potential tenants in a minimum period of time. Property management is to take care of every aspect of an HMO or rental home, from marketing vacant space and signing leases to collecting rent and calling for repairs.
What Does A Property Manager Do?
The property management company will indeed cost additional to hire, but you should think of it as an investment. Hiring a good property manager can easily return more than their own initial cost through his services and efforts. Moreover, property management company do the following:
- He will responsible for collecting rent from tenants
- Property managers will work on maintenance requests and address the tenants issues
- He will deal with defaulting tenants who are not giving actual rent on time.
- Property managers are responsible for filling vacancies with potential tenants.
- He will do bookkeeping to keep detailed records of everything happening at the property
Rent Collection
Rent collection is one of the major tasks for a property manager. Collecting rent is not easy by any means whether online or offline. It’s because it is hard to justify someone while hiring with his/ her payment capabilities. Yet, most real estate investors hire property managers to hire potential tenants with his experience to avoid rent collection issues.
Regular Property Maintenance
Property managers will deal with these maintenance requests any time of the day and relieve you from the hassle. However small requests are mostly handled by them internally and for complex issues, they need to consult outside specialists sometimes. Property management companies need to do regular inspections and routine maintenance such as:
- Lawn Care
- Pressure Washing
- Preventative Maintenance
- Plumbing Issues
- Fixing Appliances
- Drywall Patching
The property management company act as the “middle-man” and connect tenants with the necessary services they needed in your property.
Sourcing Tenants
This is the work which should be done at very first. A good property management company may take some cost of marketing for tenants ad other related tasks such as showing units and screening prospective renters. Moreover a lot of experience required for it to get better results. It’s the most valuable thing property management companies offer.
Do I Need Property Management Services?
There are plenty of investors who fully support the use of property management services. However, there is no fixed rule that you need a property manager. While there are various benefits of hiring a property management company such as:
- Mitigate Liability:
Having a third-party property management company is a perk and buffer from liability. Tenants can make false accusations regarding property An experienced property manager will be able to deflect many of the false claims levied in an investor’s direction.
- Quality Tenants:
Property management companies are good at finding quality tenants. It is, therefore, safe to hire a property manager to get potential tenants. It will be good for the owner to get a good amount of return on their investment constantly.
- Shorter Vacancies:
Property management company fill vacancies. They have a sense of urgency and efficiency. By using the traditional method they shorter the vacancies for the further hiring process. Meanwhile, landlords can increase profits by keeping the asset in service throughout the year.
- Lower Maintenance Costs:
When you work with the property manager, they will use their network access for your property maintenance services. This will surely save your costs and work done on time.
Summary
Hopefully, now you can decide whether you need a property management company or not. Property management company work is to save/make investors more money than their initial fees. That’s why it’s true the cost of property management is more of an investment than an expense. If you want to get the services of the property management company, you can contact us freely.