Reasons You Should Work With a Property Management Agency
Perhaps the biggest problem you’ll have after purchasing an investment property is how it will be managed. This is generally one of the biggest decisions you’ll have to make as a real estate investor. You’ll be left to decide whether or not you should hire a property management company handle it all by yourself. Most landlords manage properties on their own or with the help of an employee known as a resident manager or a caretaker.
We all know just one person can’t take care or manage a whole building, you need more than a caretaker! When your property is so big that you need more help, you should think of a property management company.
What Exactly Do Property Managers Do?
By now you must be thinking, what exactly do real estate property managers do? It’s simple! Property managers take care of and manage buildings and other real estate properties for individuals or group of owners. Property managers connect owners to renters and as well takes care of vacant rental properties and get them ready for business. Other reasons why you should work with a property management company include:
- The Ability to Invest without Geographic Barriers: When it comes to real estate investing, there will always be the need for a local presence. But with the help of a property management company, you don’t need to be an expert in homeownership or have knowledge in the area you wish to invest in. take for example someone who has lived in Miami his entire life, you probably have no idea on the kind of winter preparation and maintenance that should be done on a house in Chicago.
- Educate you of all Landlord-Tenant Laws and Regulations: Being updated of all landlord-tenant laws can feel like a tough task to carry on for a property owner, most especially those with a rental home in different locations. This is the duty of a property management agency.
- Market Your Property And Fill Vacancies: For every day your property stays empty, you lose income. Working with professionals reduces or eliminates this potential loss by proactively attempting to renew every current lease, or getting your home ready for lease soon after the current tenant gives notice. A well-maintained property with an appropriate rent rate will quickly attract reliable tenants.
- Screen tenants and collect security deposits: Bad tenant is a problem you never want to come across as an investor. A thorough screening of tenants can reduce your risk of financial loss. A property management agency perform a range background check on tenant credit score, rental history, employment, criminal and terrorist list, and pet information. Everything they do is in accordance with fair housing and discrimination laws.
- Collect rent and reduce delinquencies: You might find it intimidating to go about following tenants up in your multiple rental properties to collect rent. They are responsible for rent collection and making sure the check is cleared.
Like any other investment, your investment property deserves proactive and professional management. No matter the location or how far the property is from you, working with a property management agency will save you time, boost your bottom line, ensure diligent maintenance, and reduce liability.