A property management company adds significant value to your real estate investment, which is why competent real estate investors believe that a good property manager is worth their weight in gold.
Here are a few ways by which a good property management company earns their keep.
Higher Quality Tenants
It is certainly possible for you to not know everything about the prospective tenant and accept a bad tenant for your property. Although you can get rid of the tenant once they are in your home, but it’s a real hassle, and you are better off never accepting them in the first place. That’s why tenant screening is important. Think of it as the moat and drawbridge around your castle. It results in reliable tenants that:
- Rent Longer
- Pay on time
- Generally cause fewer problems
- Put less wear and tear on the property
A reliable property management company knows how to efficiently deal with the facts about the tenants and analyse them for warning signs. By hiring a property management company, you will also be able to save yourself from rental scams and discriminations lawsuit that result due to an inconsistent screening process. Efficient screening requires a lot of experience, and insomuch means avoiding bad tenants, which is one of the most significant benefits of hiring a property management company.
Fewer Time-Consuming Legal Problems
If you are a landlord, you’ll probably know that it takes only one problematic tenant to cause legal and financial headaches. A property management company is very well versed with the latest landlord-tenant laws and will do its best to save you from being vulnerable to a potential lawsuit. Each state has their own set of laws, these plus federal laws cover a number of areas including tenant screening, evictions, inspections, safety conditions of the property, rent collection, lease addendums, terminating leases, handling security deposits, etc. Avoiding a single lawsuit can more than pay for the fees of the property management company, and spare you time and trouble.
Better Tenant Retention
There are serious problems with high tenant turnover rate that many landlords don’t know about. The turnover process is a time consuming and expensive task that involves thorough cleaning, painting the walls, changing the locks, repairs, and other tasks like marketing the property, showing and settling in a new tenant. These tasks can often be averted by keeping the tenants well cared for and happy.
A trusted property management company has a time-tested tenant retention policy that ensures good tenants with lengthy stays in your property. Such processes require a systematic approach, which is why you’ll need the help of a property management company.
Better Rent Collection
The way you handle rent collection is different from how the management company does it. Payment of rent on time is the only way to ensure a consistent cash-flow, and the tenants need to understand that this factor is non-negotiable. By letting a property management company do the work for you, you create a buffer between yourself and the tenant. This way you allow them to be the mediator who has to listen to excuses, take proper care of late payment, and if necessary evict the tenant living in the property.
That’s the advantage of hiring a property management company. Your tenants will walk all over you and will have to follow every part of the lease in order to avoid the consequences.
There are strict laws regarding eviction, and a good property management company knows how trying to evict a professional tenant can be a major fiasco. They know what they are doing and what’s the best possible outcome in all circumstances. Never having to handle another eviction can be another compelling reason to hire a property management company.
A final thought
Of course, such results can only be expected if you hire a competent, reliable and trustworthy management company. A poor choice can create many troubles of its own. It is therefore very essential to separate the good from the bad.
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Canonbury Management are the leading specialists in commercial property management and work towards resolving the commonplace issues within the industry.