5 Benefits of Hiring a Property Management Company
Updated: Dec 29, 2020
If you think property management companies are only there to collect rent, think again! A property manager can manage all daily operations at a rental property and can be a massive asset to your business. From marketing your rentals and finding high-quality tenants to handling maintenance issues and assisting with legal processes, here are our top five reasons to hire one today.
1. Higher quality tenants and better tenant retention
Property management companies deal directly with future and current tenants. They can undertake a better screening process to help you find more reliable tenants, as the experience they’ve acquired year over year makes it easier to spot red flags. They also know how to select the right tenants who will pay their rent on time and create fewer problems.
A consistent screening process includes running credit and background checks, which can decrease tenant turnover ratio - which is associated with lower costs as better tenant retention leads to fewer vacancy cycles. Money can be saved on things like cleaning, changing locks, painting walls, unit inspection, and other repairs. In the end, a well-managed property means happy tenants and longer stays.
2. Fewer legal problems
Property managers have strong expertise in landlord-tenant laws and regulations and know how to address them in case of an eviction or dispute. Hiring a property management company will help to avoid issues from the start, such as inconsistencies in the screening process and getting troublesome tenants (resulting in fewer legal problems down the road).
If you do end up having legal issues at some point, a property manager knows how to properly address them. This is another advantage since there are many laws to consider, e.g., tenant screening, safety and property conditions, evictions, inspections, terminating leases, security deposits, and rent collection. A property manager has in-depth knowledge of these statewide and national laws, so you don't have to get super familiar with them yourself.
Another big pro of hiring a property management company is that you don't have to worry about lease negotiations and terminations. Even when taxes drive you crazy, they can help you understand which deductions you can claim and all documents necessary for the claims. This can help you to avoid paying fines and penalties for filing incorrectly.
3. Better rent collection process
The property management company acts as an intermediary between you and the tenant, especially when it comes to rent collection. They are the ones responsible for collecting rent from tenants and ensuring optimal cash flow for you. Not only that, they’ll also be dealing with all rent-related issues, which means you don't have to chase down rent or evict anyone if necessary. No more having to deal with the awkward "Rent past due" conversations!
4. Lower maintenance and repair costs
The property management company is responsible for the physical management of the property and keeping the property in a safe condition. By hiring a property management company, overall maintenance and repair costs can be saved. Staying on top of regular maintenance helps to prevent bigger problems, so property managers will run preventative maintenance and conduct periodic inspections, as well as perform a maintenance check program which will provide you constant feedback and suggestions for improvement.
If something does go wrong on your property, property managers have an understanding of maintenance issues and their correct price. They often have access to in-house maintenance staff and hold a large network of contractors of which they receive volume-based discounts. Not only will you save money, but it also spares you the stress of searching for a reliable plumber, electrician, carpenter, or other contractors.
5. More sleep, less stress, more freedom
Managing your property can be time-consuming, and you may not have much time to run your building’s business if landlording isn't your day job. If you want less to do with the day-to-day management of your properties, you should really consider hiring a property management company. This will give you more free time for yourself so you don't always have to be available when needed - Forget about having to deal with midnight emergencies, rental scams, and piles of paperwork!
So there you have it, the top 5 benefits of hiring a property management company. Convinced yet? Click here to reach out to us at MD2 Property Group to find out more about how we can help!