Lately, purchasing rental properties has become an increasingly lucrative investment option. The smartest property investors don’t waste time handling their properties themselves; instead, they hire property managers to take care of the daily management and tasks involved. Those who choose to manage their own rental units may save money, but will also be taking on the often-exhausting responsibilities of a landlord.
Is the cost of hiring a property manager worth it? Read on to learn more about how property managers can help investors.
1. Selecting high-quality tenants
Tenant screening should not be taken lightly. This complex process needs to be performed correctly up front to avoid hassles in the end. An improperly screened, bad tenant choice may end up causing issues or become late on rent payments, things which can be avoided if a good property manager does some research first.
Most reputable property management companies have a verified and reliable screening process. This allows them to select tenants that will pay rent long-term, minimize wear and tear, pay rent on time, and cause fewer problems. Experienced property managers have seen thousands of rental applications and have the resources to dig up facts on potential tenants quickly. They also know how to identify the red flags and avoid rental scams.
2. Property management companies offer on-call service
Most property management companies have a 24-hour emergency service to cover electrical, heating and plumbing issues. Many investors find that the constant interruptions involved in running a rental property can become overwhelming. Contractors are always an option, but can come out to cost more in both time and money at the end.
Property managers keep track of repairs by maintaining extensive records. They can even take care of small checks to cover contractors and utilities leaving you free to focus on your work.
3. Fewer legal problems
Experienced landlords understand that tenants have the power to cause a great deal of legal and financial headaches. Qualified property management companies can protect you from vulnerabilities and potential lawsuits. Every state in the United States has its own law when it comes to managing tenants and a good property management company will know the law in your area.
Additionally, there is also federal law that covers property conditions and safety, tenant evictions, signing and terminating leases, unit inspections, and collection and handling of rent. You can save a lot of money by hiring property managers and avoiding potential lawsuits.
4. Shorter vacancy periods
Property managers take care of a lot of tasks associated with the rental. They make sure that all cosmetic improvements are done on a property to maximize your revenue. They determine the optimal rental rate. Sometimes, setting the rental value too high can make it difficult to find ideal tenants. However, setting it too low would mean losing money every month. It is important to find the sweet spot when it comes to renting, and property managers help with that.
They also reduce vacancy periods by marketing the property effectively. This can be through ads that attract more rental candidates or through their extensive network.