Do you have real estate properties for rent? Do you encounter problems managing your properties? Or just do not like having to deal with unruly tenants, contract out repairs, and be tied to your location? Enough of all the headaches it caused you. You may be able to avoid these problems all together with a property management company. Most property management companies offer their services for a portion of the rent you are receiving. By having them take care of the details, you can save not only your precious time and energy but also some money. You might ask, how can a property management company save me money?
With the help of a property management company, you will definitely save money by maximizing the rental rate of your properties. A property manager is fully aware of the current rental prices and knows how much a tenant is willing to pay to occupy a unit in a certain area. Imagine, someone to do the research and let you know the best rate for renting your property at. They want you to set it as high as they think is fair because they want to make more money too and they want to see your unit rented out so they can make their money. So, thanks to the property management company, the common mistake of setting your rent too high or too low can be avoided.
Another factor where having a property management team is ideal is that a property manager will make sure that all units are occupied. When there is a vacancy, they put out ads and drum up potential clients because they don’t make any money if there isn’t someone renting the unit. Everyone knows that the application approval process and background checks are an annoying necessity. Fortunately it is something your project manager should take care of and you can even let them know what your requirements are for your tenants. I know you don’t want any of your rental properties to be sitting empty, right?
Another way a property management company can help you save money is through advertising. A property manager has connections with media outlets including the most popular medium of today which is social media, so you often pay significantly less for more effective advertising. Many management companies even include the advertisement as part of their management fees. Also, a property manager knows where to advertise and is immediately available to show the properties to potential tenants and close the deal at the best possible price. Just remember it is important to find out exactly what the property management company you are thinking about going with covers. Read that contract all the way through carefully and ask questions! This will help ensure success since you will know what they are supposed to do and what is expected of you so you can go on trips worry free!
Now, let’s talk about maintenance and repairs. A good property management company should have a list of trusted vendors who offer the property management company their services at a volume discount. Let’s say the cost of annual maintenance and repairs is $1,500.00 and the property management company has a 30% discount. That would be equal to $450.00 a year in savings. Wouldn’t that be nice? The property management company may be able to pay for themselves in savings.
A property management company should see to it that only qualified tenants will be given the rights to occupy your units. They should have a strict screening process that they will detail for you, and this should mean you will save money on the cost of eviction, cost of lost rent, cost of repairs, and even the cost of the screening process which you would incur had you not hired the services of a property management company.
Property management companies fully understand the local and federal laws and statutes. Unless you too have knowledge in this regard, a simple mistake can be very costly. Hiring a property management company can help you solve complex situations. Since they are totally aware of the possible legal constraints, then you are certainly out of trouble. And this means additional savings.
While it’s true that you have to pay management fees, at the end of the year you should still save money with a good property management company after carefully considering the above factors. Interview the potential property managers in your area, check with them what costs you will be charged, what fees they charge, and see what they are willing to do for you. Don’t be afraid to ask questions and keep your typical annual expenses at hand so you can compare what they provide with what you have had to pay in the past. Real estate can be a very profitable venture but the horrors sometimes associated with renters can deter even the bravest of hearts. More importantly, being available in case of an emergency can leave you feeling tied down. So it may be time to interview some property managers and see if one of them can help you make more money and make some money for themselves in the process.