Most real estate investors agree that working with a good management company is game-changing, meaning increased revenue and a greater sense of freedom.
Here’s our list of essential benefits that owners who work with Proper Management experience:
1. Proper Tenants
Tenant screening is a complex process, and if you don’t have sufficient experience, you might choose a bad tenant. The main issue with bad tenants, in addition to the real-time headache, is that evicting them is not easy, especially in California. Great property management companies have a reliable and verified screening process - validating tenants manually, not just using software that helps them select quality tenants who will:
- Leases are long-term
- Guaranteed rent the 15th of every month
- Reduced wear and tear
- Cause fewer problems
A property management company has seen thousands of tenant applications <- the good, the bad, and the ugly! This experience helps them quickly dig into the potential tenants and identify red flags. In addition, allowing a proper management company to handle the tenant screening avoids rental scams directed at property owners.
Good tenants ensure you won’t have to deal with time-consuming lawsuits. Avoiding bad tenants, suits, and scam artists is a crucial benefit when hiring a proper property manager.
2. Avoid legal battles & regulatory issues
Experienced landlords know a single bad tenant can cause many financial and legal headaches. A high-quality property management company will protect you from potential claims and vulnerabilities. Each state will have its laws that can affect an owner. Additionally, you have a federal law that will cover the following aspects:
- Screening tenants
- Property conditions and safety
- Tenant evictions
- Unit inspections
- Signing and terminating leases
- Collecting and handling rent and security deposits
When forced to hire an attorney, the money you save will be more than sufficient to pay for property management fees, and you will also avoid wasting your time, energy and being called a slumlord.
3. Short periods of vacancy or no vacancy
A great property manager will help you handle the following tasks that prevent your properties from staying vacant:
- Rent Readiness - To maximize revenue, a property management company will know the exact cosmetic improvements.
- Market Rate Analysis - Set the rent too high and might take too long to find tenants, too low, and you might lose money. Accurate pricing is crucial, and executing well requires deep local knowledge, comparable market data, and access to professional rental rate tools.
- Effective Marketing - Skilled property managers have written thousands of ads throughout their careers and know what to communicate, where, and when to get quality candidates quickly. Because a great property manager handles many properties, they can likely negotiate cheaper rates for online and offline ads. Furthermore, they know how to close: fielding prospects’ calls, scheduling open houses, and working with home rental companies and agencies.
4. Long-term tenants
Suppose tenants don’t rent your units for long periods. In that case, you will have to deal with a series of issues like lost rent, cleaning, changing the locks, repainting walls, replacing carpets, making repairs, going through the tenant screening process, and marketing again. All of this eats time and can be pretty expensive but is avoidable when tenants are taken care of.
A great property manager will have a tenant retention policy that is time-tested. Our entire programs require a systematic and manual approach, where a high-quality property management company will shine. Happy tenants are more likely to rent long-term than unsatisfied ones with the property or owner.
5. Efficient rent collection
Handling the collections and late fees is a critical aspect of property management. A great property manager knows owners plan their life around cash flows - rent needs to be on time - every time - no excuses.
By hiring a professional property manager, the owner puts a healthy boundary between themselves and tenants. The separation allows the manager to be the bad cop who takes tenants’ excuses, collects rent, and handles evictions if necessary.
Being too permissive, tenants will walk over you. Therefore, it should be clear how necessary each clause in the lease is and what the consequences are if breached.
The eviction process is another vital aspect a property manager will handle. There are stringent laws regulating evictions, and the tenant likely holds the keys <- figuratively and metaphorically. A skilled manager knows the law and aims at making the best out of bad situations. Not handling a potential eviction yourself is compelling to hire a proper manager.
6. Reduced maintenance costs
Tenants are always happy when we offer them good maintenance, and at the same time, you’re also preserving the value of your assets. In addition, you gain access to professional maintenance and a network of licensed, insured, and bonded contractors by hiring a property manager. These contractors are trustworthy and verified for quality work and reasonable pricing. These key relationships save you much more money than hiring someone from the yellow pages.
Additionally, a property management company will also get discounts due to a significant volume of managed properties.
7. Increase the value of your property
Identifying and repairing any maintenance issues early avoids more extensive and more expensive problems. A proper property manager will tell you that the key to maintaining and increasing the value of your property is preventive maintenance. Fixing your asset requires regular care and professional inspections, a written maintenance schedule, and precise documentation. A management company may also offer you valuable feedback and suggestions on the tenants’ upgrades and modifications.
8. The best for last: Personal benefits
- No stress - when hiring a proper manager, you don’t have to deal with late-night emergencies, nasty evictions, chasing rent, damages, paperwork, coordinating and finding contractors, or any tedious and time-consuming tasks.
- Pure freedom - If you hire a property manager, you can travel anywhere you want without having to worry about your tenants and the regular inspections. You can live wherever you want and invest in other properties.
- ROI - For a property investor, time is money, and your time reopens for more investing instead of micromanaging a property. If you focus on asset management, you are working on growing your business. When you DIY manage properties, you work in it, not on it. You will also have more time to spend with your spouse, kids, and friends.
- More money - and of course you keep more of your cash 💰
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