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Many landlords choose to hire a property manager to oversee their rental properties. In fact, about 52% of property owners choose to opt for professional property management, and for good reason. It comes with many advantages that can significantly improve your business, and here are a couple you might appreciate.
Key Advantages of Professional Property Management Services
Effective Marketing Strategies
Property managers know the right strategies to provide the best exposure for your rental listings. They can reach your target market by utilizing technology and analyzing market trends, effectively conducting data-driven marketing campaigns. This contributes to your rental property having low vacancy rates and a steady income.
Meticulous Tenant Screening
Property managers sift through applicants by using various criteria including:
- Credit score
- Criminal background
- Employment verification
- Debt-to-income ratio
- Previous landlord references
- And more!
Choosing tenants carefully is crucial since you won’t want residents negatively impacting your business by not following lease terms.
Efficient Rent Collection
When you have several tenants to oversee, rent collection can quickly become tedious. A residential property manager is capable of collecting rent promptly and maintaining on-time payments, as well as issuing late fees for rent payments if needed. They can even advise you about the property's monthly rental rate based on the current rental market and comparable competing properties.
Routine Inspections and Addressing Maintenance Requests
Inspections are time-consuming, but they’re also essential to keep your investment property in top shape. Property managers can see maintenance issues early before they get worse and immediately schedule repairs for them. They can even coordinate repair dates and hire maintenance workers when it's convenient for the tenants.
24/7 Communication
Answering tenant inquiries is important to maintain a good landlord-tenant relationship. Having a property manager you can call on 24/7 can benefit tenants immensely, especially in emergency maintenance situations. This also provides tenants with a more hands-on property management experience.
Legal Compliance
Many property owners hire professional property managers for their legal expertise, especially since there’s much to abide by in the rental business. Whether it be tenant placement, eviction, or anything in between, breaking state and local laws can lead to serious legal consequences and damage the reputation of your rental property. The expertise of professional property management can help you avoid that.
Improved Scalability
The stress levels from single-family home property management alone can already be overwhelming, let alone handling multiple properties at once. If you want to be an active investor in the real estate market, you might need to delegate management work and hire a property manager to handle other stressful tasks. This allows you to invest in more rental properties and increase your overall cash flow.
Access to Vendor Networks
Property management companies come with their own network of reliable vendors for repairs, maintenance, and construction. These relationships are forged from years of working in the local industry. Property owners can potentially get lower prices from vendors and property managers can guarantee the quality of the vendors' work.
Handling Sensitive Situations
Tenant disputes can be hard to navigate depending on the circumstances, but a good property manager can act as a mediator and resolve the issue for all the parties involved. Even with evictions that can take weeks to months to be finalized, property managers can take care of them for you along with everything else that happens after like tenant turnover and collecting past due payments.
Earning Passive Income
Hiring a property management company allows you to earn passive income and focus on other profitable opportunities. This is one of the main reasons property owners hire a property manager to oversee their rental units. It's a wise decision, especially if you just purchased your first rental property and still don't know your way around property management.
What is Included in Full-Service Property Management?
Marketing/Advertising
Property management companies offer marketing services to attract the right tenants to your investment property. Property managers conduct rental market analysis to set the right rental price and create professional, alluring listings on all relevant platforms.
Tenant Screening
Property management companies usually use base criteria for screening tenants such as credit checks, eviction history, employment verification, criminal history, debt-to-income ratio, and previous landlord references. This ensures that you get tenants who will follow your lease terms and not cause trouble for your business.
Rent Collection
Property managers can collect rent payments and issue late fees when a tenant fails to pay on time. Companies like Precision Realty, for instance, use an in-house tenant portal where residents can pay 24/7, allowing for streamlined transactions.
Maintenance and Inspections
Property management companies schedule regular inspections to ensure that the property is in the best shape for the tenants. When needed, maintenance issues are addressed promptly. You would also have access to their network of licensed and insured vendors for fast, quality work.
Financial Management
With the use of financial management tools and accounting professionals on the team, property managers can process all payments that go through the business. Property owners will get owner statements and direct ACH transfers, along with annual processing of tax statements and 1099s.
Eviction Processing
Not only do property management companies conduct proactive measures to prevent eviction, but they also oversee the process with legal compliance in mind. With it being a tedious process that can sometimes last for months, landlords can rest easy knowing that the process will be taken care of without having to lift a finger.
Where Can I Find a Property Management Company to Hire?
There are plenty of property management companies you can hire in your area. Around Houston, Texas, Precision Realty can provide you with the comprehensive services mentioned above. We will do our best to maximize the value of your rental property and take care of your tenants.
You don't need to commit right away! You can contact us to learn whether we’re the right fit for your needs, or ask us for a quote for a more transparent transaction.
