If you have recently invested in a rental property, you may quickly discover that the responsibilities involved in managing the property can be overwhelming. One easy way to relieve the pressure of managing your rental property is to hire a property management company. A property management company can handle some of the most stressful and time consuming aspects of owning a rental property.
In this real estate market a consistent and reliable cash flow can mean the difference between your real estate investment being a success or a failure. Hiring a professional residential property management company can help guarantee that your investment is a success by ensuring swift and consistent rent collection. Property management companies have the systems and strategies that can help to improve rent collection and on-time rent payments.
Unlike personal strategies, property management companies have the tools and strategies to ensure that every tenant is suitable to rent from you. Not only do they require detailed written applications from each tenant, they also run thorough background checks, which include criminal, social security and public notice searches, in order to determine if the application is accurate. Property managements can greatly assist you in finding tenants also because they check references and often contact past and present employers, and landlords.
Another perk to hiring a property management company is the fact that they have extensive knowledge of the local market and therefore can help you set proper rental rates. Because they know all about local rents, they have the ability to determine the highest rental rate possible for your property without going too high. With most renters having access to the internet, they often know if a property is overpriced, which often can result in your property sitting empty while other, more sensibly priced properties are being rented.
Marketing expertise – property management companies know how to best market your properties so they are rented in the quickest time possible.
Property law and regulations – they can assist you in making sure you are in compliance with your local, state and federal rules and regulations.
Inspection reports – property management companies perform property inspections before, during and after a tenancy and write up inspection reports to keep track of problems.
Financial records – they provide detailed income and expenses reports as well as cash statements every month.
Dealing with emergency calls and tenant problems – property management companies deal with emergency phone calls from tenants and any other issues that relate to tenants so you don’t have to.
Low costs – despite all the services they provide, property management companies only charge you around six to ten percent of the monthly rent collected.