If you are thinking of expanding your property management portfolio, then hiring a property manager can be your best option. A reliable property manager can add significant value to your investment.
Here are some ways on how property managers help homeowners like you.
1. Higher quality tenants
Tenant screening is like the moat and draw bridge around your castle. It is possible to get a bad tenant out of your property once they are in; however, it’s a hassle, and you are so much better off never letting them in the first place. When you hire a property manager for your rental property, they will conduct a thorough screening process that may result in reliable tenants that:
· Pay on time
· Rent longer
· Cause lesser depreciation on the unit
· Cause smaller problems
A professional and experienced property management company has seen thousands of applications. It knows how to efficiently dig for the real facts about candidates and analyze that information for any red flag. When you allow a property manager to handle the screening, you will also be shielding yourself from rental scams directed at property owners, and any discrimination lawsuits.
2. Lesser costly and time-consuming legal problems
Experienced property owners know that it only takes one stressful tenant to cause significant legal and financial headaches. A professional property manager is knowledgeable of the latest landlord-tenant laws and can ensure that you are not leaving yourself vulnerable to a potential lawsuit. Every state and municipality have their requirements, plus the federal law covering several areas including but not limited to:
· Tenant screening
· Safety and property conditions of the property
· Any evictions
· Inspections conducted
· Lease addendums
· Terminating leases
· Handling security deposits
· Managing rent collection
Avoiding any lawsuit can spare you time and anguish.
3. Shorter vacancy cycles
When you have a property manager, they will help you perform three critical tasks that significantly affect how long it takes to fill your vacancies.
· Prepare the property for rent. It includes any improvement on the facilities, or to the property itself. A good property manager will oversee and recommend any needed cosmetic improvements to maximize the revenue.
· Establish the best rent rate. If you have a too high rent rate, you can be stuck waiting. If you have too low rent rate, you will lose money every month the tenant is in the unit. Establishing the best rent rate requires knowledge of the local market, data on recently sold comparable, and access to rental rate tools.
· Expertly market your rental property. A reliable property management company has written hundreds of ads. It knows all the details to get a larger pool of candidates in a short period. Moreover, due to their volume, they can usually negotiate cheaper advertising rates both online and offline. Lastly, they are knowledgeable about sales and how to close when they take calls from prospects and take them on showings.
4. Tighter Rent Collection Process
The way you handle rent collection and late payment can be the difference between success and failure as a property owner. The only way to maintain consistent cash flow is by collecting rent on time every month. When you hire a property manager, you put a barrier between yourself and the tenant and allow the property manager to impose the right collection procedures.
A Final Thought
This scenario is ideal if you hire a management company that is competent, trustworthy, and a good fit for your property. You may check on La Jolla Property Management to get the best property management services.