Enlisting a proven property management team can add substantial value to your real estate investment. In fact, seasoned real estate investors find that the ROI on a good property management company is key to profitability. Here are some top benefits of engaging the right property management firm to help achieve your investment goals:
Reduced stress. When you consider all the responsibilities that go with managing tenant needs—dealing with middle of the night emergencies, collecting rent payments, evictions, property damage, rental scams, hiring contractors, and more— a proven property management company can make or break a property investor’s success.
Opportunity to invest in properties in the most lucrative markets. A property management team allows investors to buy properties outside of their own geographic region. In addition, property owners can live and travel without the worry of being available to tenants 24/7. A good PM team allows property owners to rest assured that the daily demands of being a landlord are always met no matter where they are, and ensure the reliability of their rental income streams each month.
Time is money. In order to be successful, investors can’t be limited by the time it takes to service their existing properties. Time can be more profitable when it’s spent seeking out new investment opportunities knowing their current properties are being managed appropriately.
Quality of life. Property owners who utilize PM companies have more time to spend with family and friends while pursuing other interests.
Benefits of an experienced property management team
Higher quality tenants, better tenant retention
Screening tenant applicants is crucial to avoiding headaches down the road. An experienced property management company has the screening tools necessary to ensure reliable tenants will stay in your properties for a long time. This kind of screening system requires a consistent, methodical approach that benefits both property owners and tenants.
A thorough approach involves a series of steps that are time-consuming and costly to property owners who attempt to manage them without professional help. The right property management team attends to all the details, from screening potential tenants to cleaning, painting, and making small repairs to units for maximum tenant appeal. In addition, the property management team handles the many efforts involved in marketing, showing, and helping new tenants get settled.
Proper tenant screening is a thorough process that leads to reliable tenants who are most likely to pay their rent on time, take better care of the unit during their residence, and stay put longer. Higher quality tenants are thoughtful when it comes to respecting the privacy and comfort of their neighbors, which further boosts the desirability of your units.
This kind of expert screening takes time, knowledge and skill to avoid problem tenants, scams, and potential lawsuits. A professional screening process provided by a seasoned property management company is perhaps the most important benefit a PM company can provide. It only takes one bad tenant to create legal and financial problems for property owners.
Shorter vacancy intervals
An experienced property management service can reduce the time it takes to fill vacancies by:
Preparing and making improvements to prepare properties to rent. They will suggest and supervise cosmetic enhancements that maximize rental revenues.
Estimating the best rental rate for the area’s market value. When rental properties are priced too high, they sit unrented, and property owners lose money each month a unit remains vacant. Optimal rental pricing requires a keen understanding of the local market, information gleaned from data on comparables, and the right rental rate tools.
Experience with effective, affordable marketing strategies that attract the highest number of tenant candidates in the shortest period of time. The right property management team also has expertise in sales and showing properties, and knows the best strategies for fielding calls from prospective tenants.
Optimal tenant retention
A good property management team will have a proven tenant retention policy in place that maximizes the likelihood of selecting tenants who are more likely to stay for longer periods of time.
High tenant turnover costs property owners money considering all the expenses that go with preparing a property to show, marketing, screening, showing, and establishing a new tenant.
Reduced potential for costly, time-consuming legal problems
The right property management team has a thorough knowledge and understanding of the latest local, state, and federal tenant-landlord laws to ensure property owners are not left vulnerable to potential litigation. These laws govern tenant screening, property safety and conditions, inspections, evictions, lease requirements, rent collection, and security deposit procedures.
Avoiding a lawsuit will more than pay for your property management fees, not to mention the time and stress property owners avoid.
Efficient, coordinated rent collection
Handling and processing rent collection and late fees can make or break an investor’s ability to achieve their financial goals. A rental management company is better equipped to ensure timely rent payments from tenants that support consistent cash-flow for property owners. The PM team protects property owners from chasing down late rental payments; they know how to respond to tenant excuses and follow through with timely evictions when the need arises.
Your property management team serves as the enforcer, trained in dealing with every stipulation of lease agreements and tenant management. They have the advantage of portraying themselves as an agent of the property owner, obligated to simply do their job and enforce the terms of tenants’ obligations. Property owners find that by removing themselves from the rent collection process, they are sheltered from conflicts that can arise when tenants fail to meet their rental obligations.
When it comes to the tenant eviction process, strict laws apply. When a tenant eviction is not handled by an experienced agent with a proficient knowledge of eviction laws, the property owner can face major legal and financial consequences. A good PM team has a tried-and-true process for obtaining the best outcomes when a tenant eviction becomes necessary.
The right property management company can help property owners navigate complex tax protocols, clarify deductions that can be claimed, and organize the required forms and documentation for those deductions. An added bonus—property management fees are tax deductible.
Lower maintenance and repair costs
Keeping tenants happy and safeguarding the value of a property is critical to maintaining its value. Your property management team provides a dependable maintenance staff with a vetted network of licensed, bonded, and insured contractors with track records for good pricing and quality work. This can save property owners a tremendous amount of time and money in a variety of ways starting with volume discounts. It also helps property owners circumvent the risk of shoddy work and avoid potential liabilities associated with unlicensed contractors.
Increase the value of your investment
By adhering to a proven schedule of preventative maintenance protocols, a property management team is better able to anticipate and address maintenance and repair issues before they become a serious problem. Your PM team should adhere to a maintenance check process, detailed maintenance documentation, and routine maintenance procedures. The management team will offer property owners suggestions and feedback on modifications and upgrades that can affect the amount of rent that a unit can bring in, and impact overall maintenance and insurance costs.
Finding a property management company that best meets your needs is critical to reaping all the benefits that property ownership offers. The PM team you choose should have a track record of trustworthiness, competence, and ability to serve all your property’s unique needs. Vetting and engaging the right PM team is key.
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RentVest Property Management offers customer-centric property management services to property owners in Atlanta, Las Vegas, Dallas, Phoenix, Tucson, Reno, and Hawaii. Learn more about RentVest’s full service management benefits.