Why Successful Real Estate Investors Partner with Property Management Companies
Investing in real estate is a smart way to generate income and grow your savings. As a landlord, you can earn passive revenue from short and long-term rentals and then reap tax benefits. So, if you consider renting out your property now, it will allow the value of your property to compound over time.
Giving you considerable value when you decide to sell.
It is important to visualize what you want to do with your rental property to turn it into a good investment. With the right strategy, your rental property can become a thriving business.
But understanding this strategy can be a challenge, especially if you’re a new landlord. In such a case, many turn to property management companies for assistance.
Which is why we at Leenan Property Management have put together the following article, so you can understand the benefits of working with a property management company.
Challenges for Rental Owners
Rental property investment, just like any other type of investment, demands expertise to make it run correctly. You will encounter different challenges that will require your time and attention. These challenges include:
- Rent collection
- Tenant screening
- Property maintenance
- Repair requests
- Relationship management
The Benefits of Hiring a Property Management Company
If you love your rental property business but struggle to keep up with the day-to-day responsibilities yourself, hiring a property manager is the best thing you can do.
Handling every property management task on your own can be satisfying but can also rob you of time that you could use to pursue other business ventures or manage other responsibilities.
Property managers can give you this time back by taking care of your tenants and addressing any issues that may arise during their stay.
Property management companies offer services that add value to your investment and free you of the day-to-day responsibilities of being a landlord.
Hiring a property manager is a major business decision but it can be very beneficial to you in the long run. If you are still having second thoughts about hiring one, below is a list of the services that property managers will help you with:
Marketing Your Rental Property
Property managers have extensive knowledge regarding the advertising of properties to find the kind of tenants that will take care of your house as their own.
From creating the listing to taking photos of the property, a property manager can come up with a great plan to present your property beautifully.
When multiple prospects inquire about the property, you can rest assured that property managers will analyze their information to ensure you only rent to high-quality, reliable tenants.
In addition, a property management company can effectively manage turnover dates to lower your vacancy rates. This includes scheduling cleaners and getting the place ready for the next possible renter and making sure the calendar is open for bookings.
Collecting the Rent
Rent collection is one of the many responsibilities a property manager can take care of. When you work with a property manager, you won’t have to chase down late rent payments ever again.
A property manager knows how to deal with difficult tenants and understands the eviction process, should it ever come to that. They have experience in putting the landlord-tenant laws into practice and can keep you out of any legal trouble.
Managing Complaints and Maintenance
Dealing with maintenance issues can take its toll on you, especially when they in the middle of the night. A property manager can communicate with your tenants, assess the situation, and schedule the right contractors to take care of issues like:
- Broken appliances
- Clogged toilets
- Burnt out electrical outlets
- Damaged sockets
- Lawn maintenance
- Loose cabinet hinges
But maintenance can easily be addressed by a skilled contractor; handling tenant complaints is a different story altogether.
Dealing with your tenant’s complaints about clogged toilets and leaky faucets can put a strain on your relationship with them. But their needs must be acknowledged and responded to as soon as possible.
Being attentive and responsive to their feedback and complaints adds to your property’s rating through tenant reviews or word of mouth. So, it is best to let property managers take this duty off your shoulder and have them work out issues with your tenants.
Managing Financial Records
Some of the benefits you have as a real estate investor are the tax benefits. Keeping detailed records of everything that happens with your business is a good way to keep track of your cash flow.
It is critical that you know what you spend your money on and how your business is doing. All financial transactions, whether on paper or digital, must be recorded so you can see how well your business is performing.
Data entry is the foundation of bookkeeping can be pretty manageable but if your property manager is offering this service, this could mean having one less time-consuming task to do.
Working with a property management company is a great investment. When you have a professional property manager taking care of your investment properties, you’re free to spend more time on other ventures.
If you feel the daily responsibilities of being a landlord weighing on you, contact Leenan Property Management today! We will take care of everything from finding you the best tenants to property upkeep so that you can get the best ROI on your investment.