8 Benefits of Using a Property Management Company

If you are a real estate investor or a property owner, one of the first things you need to do is hire a property management company. Why? The short answer is that you save time, money, and resources. The longer answer can be seen in the eight benefits highlighted in this article. 

Regardless of your experience level in understanding the complexities of property management, property managers are here to take over your concerns and ensure everything runs smoothly with your property management. However, only by partnering with a reliable property management company can you rest assured that you can enjoy all the benefits. Property management is challenging as it involves ensuring compliance with fair housing laws and handling maintenance. Plus, it includes dealing with tenants and resolving any tenant issues. 

So, let’s dive deeper into the benefits of hiring a property management company and help you make your checklist when choosing one. 

1. Taking Care of Legal Problems

Property managers can deal with financial and legal headaches from problems with tenants as they have the know-how and experience to settle things that benefit the tenants and the property owners. In cases of bad tenants, they can protect property owners from potential lawsuits and vulnerabilities. They know the property laws inside and out and can advise the next steps in the process.  

When talking about legal matters, property managers cover screening tenants, ensuring safety and optimal conditions of the property, tenant evictions, unit inspections, signing and terminating leases, and collecting and handling rent and security deposits.

2. Tenant Screening and Getting High-Quality Tenants

A great benefit of collaboration with property management companies is that you can be sure that the chosen tenants pass the screening process with flying colors. Screening tenants is a tough job - and it takes experience to recognize some red flags. The biggest challenge with bad tenants is making them leave the property, so good property management companies ensure it won’t come to this. They have a reliable and verified screening process that helps them select high-quality tenants. 

What is a high-quality tenant? Think of someone who signs a long-term contract for renting the place, pays rent on time, reduces the damage and deterioration of the property, and causes fewer problems.

3. No Vacancies

Property management companies will ensure your place won’t stay vacant for too long. They achieve this by preparing the properties for rent, which means applying unit improvements to maximise the revenue. Also, they determine the optimal rent rate. They know that if they set the rent too high, it will take longer to find tenants, and this means the place will stay vacant for a longer time, so they determine the right price so you won’t lose any money in the meantime. They need to know the local real estate market, have data on similar units, and access professional rental rate tools to set the right price. 

4. Reduce repair and maintenance costs.

Another great benefit that a property manager brings to the table is their taking care of the maintenance of the property. But they go the extra mile to ensure the costs are manageable. This is what makes the tenants happy. In addition, property owners can, in that way, preserve the value of their assets. Property management companies usually have many contacts with good contractors who are licensed, insured, and bonded. Property managers can vouch for these contractors as they have proved their quality work in previous collaborations and offer reasonable prices. That is how the property owner can save money compared to hiring contractors who don’t have previous experience working with them. 

5. Efficient Rent Collection 

Rent collection is one of the most uncomfortable things for a property owner to do. However, a good property management company will have a process to optimize and streamline this much more efficiently. They can ensure a consistent and reliable cash flow by controlling rent collection. The property manager can sometimes even act like the “bad cop” in cases with non-paying tenants and even handle evictions. Or, they can listen to the tenants’ excuses for not being able to pay the rent and find a solution that will work for both parties. 

6. Finding Long-term Tenants

Finding long-term tenants is another benefit of hiring a property management company besides finding quality tenants. First, finding long-term tenants is significant because the short-term tenants expose the property owner to several problems, including having to clean the property more often, change the locks, repaint the walls, replace the carpets, make minor repairs, etc. If a good property manager takes over, they will find long-term tenants with their screening process. They will have a tenant retention policy that is tested with time. Such programs are crucial for keeping a tenant longer but must be consistently improved and updated. 

7. Increase the Rental Property Value

Of course, preserving and increasing the value of the rental property is part of preventive maintenance. To make sure the rental property is still valuable, regular checks and inspections must be done, and the property manager is the one who runs that process. This also includes crafting a written maintenance schedule and detailed documentation.

8. Benefits Non-related to the property.

Last but not least, personal benefits emerge from the collaboration with a property management company. These include less stress, more freedom, and more free time to focus on the aspects of your business. The property manager will take care of late-night emergencies, damages, paperwork, and all other tedious and time-consuming tasks that will cause stress to you and your family.

Conclusion

To sum up, hiring a property management company comes with a great range of benefits. These include having ex-pats handle legal problems and paperwork and finding great tenants to occupy the rental places - both high-quality and long-term. They also ensure the site is not vacant for more extended periods and make rent collection a breeze. Moreover, property managers handle repairments and overall maintenance of the place, plus they take a load off your shoulders so you can spend less time stressing and more time doing what you love. Overall, collaborating with a property management company is a smart move that makes owning property much easier and more profitable.