If you are new to being a landlord and to renting property, congratulations! This can be a truly financially rewarding experience, but it can also take up a lot of time to manage it.
Now, if you’ve owned a rental property for a while, you’ve noticed this clearly. Investment properties are impressive as another source of income, but it takes some time out of your month for various tasks.
That’s why so many people who rent out their property hire a property manager. While it’s a significant investment to have rentals, being a landlord has its challenges. Sometimes you just need a professional, like a property management company, to partner with you and make your life easier.
Here are five ways that make working with a property management team a superb idea!
1. Finding and Managing the Right Tenants
Because property managers have such vast experience, they know exactly how to market your rental property. They know how to create interesting advertising material to peak a renter’s interest. This is a major advantage, getting a new tenant in quick and lessening the time for a vacancy.
It can take up a lot of time searching for tenants. An experienced property manager knows how to get it done.
They help you with all the details, like:
- Collecting security checks
- Completing a criminal background check
- Running credit reports
- Verifying employment
- Verifying previous landlord references
Not only do they find the right tenant, the property manager will manage the relationship itself. Your property management team will handle all parts of the tenant-landlord relationship.
They will handle routine maintenance. Your property management team will help from emergency fixes to routine inspections, and your property management team will handle situations of conflict resolution.
Lessening the burden, the property manager gives you peace of mind with all aspects of handling tenants.
2. Rental Rates and Collecting Rent
One way to attract the attention of the right tenants is to set the right rental rate for your property. You can search online at classifieds advertisements to see what rate similar properties are going for with other landlords. This can give you a ballpark figure at least.
A property management company knows how to get a thorough market study. This will really help with setting the right rental rate for your property. You want to maximize your monthly income while also having a low vacancy rate, and a property manager can help you achieve just that.
They can also help with collecting and depositing the rental payment on time every month. If you have ever worked in accounting or billing, you know that collecting payments can get hairy. It can be downright frustrating and awkward when you have to discuss late payments.
Property management teams know what to do, they are professionals after all. They have tried and accurate methods. Property managers can maintain on-time payments and effectively collect rent.
Especially if you are the landlord of only a few properties, knowing that you can collect the rent on time can be critical for your personal cash flow.
3. Vendor Relationships
A property management team has established relationships with contractors, tradespeople, maintenance workers, suppliers, and vendors. This can be very difficult for an independent landlord to replicate on their own.
A property manager can get the best price for the best work and oversee the projects from beginning to end.
A property manager can help a landlord ensure compliance with property laws and housing regulations. There are a ton of regulations and laws the landlord must follow with renting. This includes how you maintain the property.
We must adhere to federal, state, and local regulations and fair housing regulations, like the ADA. The property management company can help keep you and your property in line with all of it. This will help you as the landlord avoid lawsuits.
5. Be a Landlord From Afar
If you are geographically far away from your property, you are in luck. A property manager can help. You can use this to your advantage and invest in properties at any location you want to.
Without a good property manager, you are limited as to the location of your investment property. You would need to stay within a local radius.
With a property manager, you can live in California and rent a property in Maine!
What Does a Property Manager Cost?
Typically, a property management company will charge a percentage of the monthly rent, as a way for you to maximize your profits. When you consider how much you would spend on the vendors on your own, you have cost savings right there. A property manager makes financial sense for any new or experienced landlord.
A Property Manager Can Help You
A property manager solves maximize your time and keep you profitable. The property management team will take care of the day-to-day of your rentals, which will free up your time so you can focus on other ways to make money, such as additional investment properties. Or, you can focus more on your career.
Unmatched Service in Property Management
Founded in 2002, Reedy & Company is one of the leading property management companies in the Memphis area. We have vast experience, including managing over 3,500 properties owned by local landlords, domestic landlords, and foreign investors.
We take pride in best-in-class advice. We have a property manager we know you will love to meet and help you maximize your time and profits!
Let’s chat for a bit. Reach out to us today!