There are currently more than 20 million rental properties available throughout the United States. Do you own rental properties, or are you thinking about renting out a home or apartment in the future? If you’re in this boat right now, you might be interested in working with a property manager to help you handle your investments and keep things running smoothly. Everything you need to know about property managers and property management companies is explained below.
What Do Property Management Companies Do?
The property management industry has been growing steadily for the last several years, and it’s currently worth approximately $101.3 billion. Despite its growing popularity, there’s still a lot of confusion around property managers and what they do.
Put simply, property managers and property management companies are responsible for overseeing all the daily operations that keep rental properties up and running. This includes handling maintenance requests, filling vacancies quickly when tenants leave, and managing evictions if a tenant violates their lease.
Property managers act on behalf of the property owner when they are unable or unwilling to handle the tasks associated with maintaining a rental property.
Benefits of Hiring a Property Management Company
There are many reasons why hiring a property management company is a smart business move for a real estate investor, especially one who has multiple properties they’re juggling. The following are some of the greatest benefits property management has to offer:
Easier Tenant Screenings
Finding the right person to occupy your property can feel like a full-time job by itself. If you don’t have time to meet with and screen tenants, a property management company can be a big help. They’ll handle these steps for you and ensure your properties are occupied by reliable renters.
Easier and More Affordable Property Maintenance
Property managers play a big role in keeping rental properties well-maintained. They handle day-to-day maintenance issues, like landscaping and snow removal, as well as repairs requested by tenants. Often, they have connections with contractors and other repair professionals that make these processes more budget-friendly, too.
Better Rental Marketing
Property managers have the time, experience, and resources needed to market your properties and get listings in front of the most desirable tenants. If you don’t want to worry about listing your rentals and fielding calls from potential renters, a property manager should definitely be on your team.
Decreased Tenant Turnover
Every real estate investor knows how important it is to improve occupancy rates and decrease tenant turnover. Working with a property management company helps you to prevent tenants from leaving early, keep them around longer, and fill vacancies quickly. All of this, in turn, leads to more profitability and fewer costs for you.
Reduced Late Rent Payments
Property management companies can help you ensure you’re collecting rent on time each month. They can implement and enforce policies in the leases to make sure people aren’t paying rent late or skipping payments altogether. They can also issue eviction notices if necessary.
Reduced Risk of Legal Issues
As a new real estate investor, you might not be well-versed in the ins and outs of your area’s landlord-tenant and fair housing laws. Property managers and their teams are, though.
When you work with a qualified property management company, you can feel confident that you’re abiding by all laws and regulations. This reduces your chances of facing legal issues down the road.
Last, but not least, hiring a property management company saves you a lot of stress as a property owner.
When you work with a property manager, you don’t have to deal with frustrating tenant interactions, nor do you have to handle repairs, rent collection, or any of the other day-to-day stressors that many landlords have to face. Instead, you’re free to focus on other things, like expanding your investment portfolio.
How to Choose the Right Property Management Company
If you’re looking for the best property management services and property management advice, you need to hire the right team for the job. Here are some tips to help you narrow down your options and find a great property manager to handle your rentals:
Ask About Experience
A good starting point is to ask about the property manager’s experience. How long have they been in the property management business? What kinds of properties do they typically manage (apartment buildings, single-family homes, etc.)?
Verify Licensing and Credentials
Always make sure the property management company you’re considering is appropriately licensed and is legally allowed to operate in your state. You may want to find out if they are part of any professional organizations, too, such as the National Association of Residential Property Managers (or NARPM).
Check References and Reviews
When you’re thinking about working with any type of business, it’s a good idea to ask for and check references. Property management companies are no exception.
Any property manager worth hiring will have no problem providing references or sharing reviews from past customers. If they’re hesitant about doing this, that’s a red flag.
Ask About Insurance
Find out whether or not the company is insured, too. Ask about their coverage and what it entails, and make sure it’s up to date before you hire them to manage your rental properties.
Review Agreements with Care
Before you decide to partner with a particular property management company, review their agreements and contracts with care. Don’t sign anything until you’ve read it thoroughly and understand what you’re agreeing to. That way, you won’t run into any surprises later.
Need More Property Management Tips?
Now that you know more about what a property management company does and the benefits of working with one, are you ready to take the plunge?
Hiring a professional to manage properties in your name is a great way to streamline your business and generate more income as a real estate investor. The key to experiencing these benefits, though, is choosing the right property management company.
Contact us today at Reedy and Company to learn more about our property management services and find out how we can help you.