Are you a landlord or a real estate investor? One of the biggest decisions you will ever have to make is whether to use a property management company to maintain and oversee the daily operations of your property. Compared to landlords who prefer the do-it-yourself approach of management in order to save money, working with property management companies increases your chances of growing your properties bottom line and enhancing your rental portfolio.
But what does a good property management company do? Here is a list of essential services you can expect from a good property management company.
1. Effective Collection of Rent from Tenants
If you own many rental units, you understand how cumbersome it can get when trying to collect rent from every tenant all by yourself. This is why you should use a reputable property management company. A good property manager will ensure that all your tenants pay their leases in full and at the right time.
If you have limited time and you want to focus most of your efforts on growing your business, hiring a property manager who is fully committed to the day to day running of your property will be a great investment.
2. Regular Property Maintenance
Dealing with frequent calls from tenants is probably the biggest reason why landlords enlist the help of a management company. Sometimes the tenant’s needs are not very big but the timing and the urgency are. You may receive a call in the middle of the night from a distressed tenant who has misplaced their keys and can’t get in.
Failure to address these issues can result in serious problems with your tenants in the future. Having a good property manager who responds urgently to all property issues will not only ease your burden but also ensure that all your rental properties are optimized.
A good property manager will also inspect the property regularly and make sure that all routine maintenance such as lawn care, plumbing issues, drywall patching, pressure washing, and all other services that tenants may need are handled at the right time.
3. Sourcing of Tenants
It is one thing to get tenants for your rental property, it’s another thing to get the right tenants. A good property management company will ensure that proper screening of prospective tenants is done so that you don’t end up with tenants who are bankrupt or have fully maxed their credit cards and will have problems paying rent every month.
A good property manager will also take time to call previous landlords and also look into the tenant’s criminal history. The last thing you need is a tenant who puts you or the entire neighborhood at risk.
Bookkeeping is a vital part of property management. Proper bookkeeping ensures that taxes are kept at a minimum, and the cash keeps flowing. A good property manager will ensure that your books are kept properly but if they don’t offer bookkeeping services, they can advise you on where you can outsource a good bookkeeper who will add value to your business.
5. Effective Handling of Defaulters
Sometimes tenants get caught up in serious issues such as breaching of leases while others could be involved in criminal issues. While some issues can be sorted directly with the renter’s other issues require lawyers and even going to court. A good property management company can handle these problems for you and save you the time and agony of dealing with such stressful situations.