Making the choice to use a property management company can really take a weight off your mind. Not only that, but they can add significant value to your investment if you find the right company. Some real estate investors would even go as far as to say that property managers are worth their weight in gold for saving time, protecting your investments and creating better returns.
Here is why you need to use a property management company…
Property management companies have an intensive screening process in place to ensure that you get the best tenants in your property. While you can remove a bad tenant from you home, it is easier to get a good one from the start - before they have the chance to miss rent payments or damage your property.
Good tenants are ones that:
- Always make their rent payments on time and in full
- Rent your property long term
- Leave little to no damage and don’t abuse the property
- Are all-round easier to deal with
Experienced property managers have sifted through thousands of rental applications in their time. That means they know the bad ones from the good ones and can weed them out quick smart. They prevent you from having to go through this tedious process and potentially making a bad tenant decision.
Avoiding Financial and Legal Problems
A property manager knows their field like the back of their hand. Meaning that they know all the rules and regulations that need to be followed by both sides.More importantly they know the law and how to make it work for you.
They can prevent you from making a simple mistake that could land you in legal hot water. They can also protect you from problem tenants who make a career out of ripping people off, including their landlord.
If you can save yourself even one financial or legal headache, then you will have covered your property management fees for years to come!
Less Down Time
Your property manager will do everything they can to minimise the time that your property is empty for. They do this by…
- Preparing the property for rent by overseeing any minor improvements
- Using their local market knowledge, data on comparable properties and rent rate tools to help you set an optimal rent rate that is not too high and not too low
- Using effective marketing to get your property in front of the right people at the right time
Good Tenant Retention
Long term tenants are far more attractive for your property as there is less hassle involved with constantly changing. It also minimises spending on costly tasks like exit cleans, changing the locks, and repairing any damages, which all need to be done before a new tenant moves in.
The idea is to keep your current good tenants happy so that they stay long term and you don’t have to worry about any of other things. Property management companies will have excellent tenant retention policies that keep your tenants happy and well cared for.
Rent Collection Processes
Collecting your rent on time every week or month is what will keep your cashflow operating smoothly. Without this on time collection, you can risk your success as a landlord. Your tenants need to understand that late payments are not acceptable and that their rental terms are non-negotiable.
A property management company can provide the buffer between yourself and your tenants, allowing you to be objective about your decisions. The manager will be the one that hears the lies, the sob stories and the excuses, while you remain removed.
Tenants will also learnt that they can’t get away with the things that they want to when there is a property manager in place. A property manager has a job to do. Enforcing the terms of the lease is part of that job, and they are less swayed by tenants than a landlord is.
If the worst comes to the worst, a property management company will know how to evict a problem tenant correctly, to comply with strict eviction laws. Not having to go through an eviction process by yourself is reason enough to have a property management company.
Better Value Maintenance Costs
By engaging a property management company, you also engage their network of tradies, handymen, and maintenance staff. These contacts have already been verified as being honest, hardworking and good at what they do. This can often mean lower repair costs and peace of mind that the job will be done well.
Wear and tear will happen on your property, but by regularly having someone monitor these things, you can be proactive on any upkeep. It can be done before a major problem (and the major costs associated with it) arise.
A management firm is required to complete regular checks of the property and detailed maintenance reports based on those checks. They can give useful advice on repairs and property modifications that can increase the value of your property, as well as keeping your tenants happy.
Save yourself time and stress by engaging a property management firm. Letting an expert handle the situation can free up your time and energy for more important parts of your life. No more chasing rent, dealing with middle of the night emergencies, or massive piles of paperwork.
Don’t be tied to one location just because your property is there. With a management firm in charge you have the freedom to travel and buy property wherever you choose.
Make sure that you can trust the management company you employ to do a good job. Selecting a bad management firm will just end up causing you headaches. Do your research and choose the company that suits you best.