Managing a rental property can be challenging, especially if you lack the time or skills for the job. This is where rental property management companies come in. But, what does a property manager do anyway?
What Is Rental Property Management?
The definition is in the name itself — rental property management. Simply put, it is the management of rental properties, be it residential or commercial. It involves the overseeing and performance of day-to-day tasks, usually by a rental property manager, to ensure smooth operation.
What do rental property managers do? Specifically, rental property managers are in charge of marketing your rental property, finding and screening tenants, collecting rent, and overseeing various maintenance and repairs. Their property management duties and responsibilities can also include tenant retention and ensuring compliance with the law.
Many people wonder whether there is a difference between property management and rental property management. The two are essentially the same thing, which means you can use the terms interchangeably.
The Benefits of Hiring a Rental Property Management Company
Commercial and residential property management is no easy feat. If you own a rental property, consider the following reasons to hire a rental management company:
1. Manage All Your Properties
Is it hard to manage a rental property? If you only have one rental property to think about, it is definitely possible to manage it on your own. But, as your real estate assets grow, it will become increasingly difficult to keep up with the demands of rental property management. After all, how many rental properties can one person manage?
The beauty of hiring a rental manager or company is that you don’t need to divide your time between all your rental properties. Companies have the resources required to stay on top of all the daily tasks without suffering burnout. If you try to juggle multiple rental properties by yourself, you will almost certainly feel exhausted — and that doesn’t even factor in your full-time job and personal life.
2. Quickly Fill Vacancies With Quality Tenants
One of the hardest aspects of managing a rental property is finding good tenants to fill vacancies. Rental management companies can help with that, too.
These companies can create a compelling online listing for your property and find tenants fast. They will also be the ones to screen your tenants to make sure you get high-quality renters. Property management companies have dealt with countless applications, so they know how to identify red flags and false information. With their help, you will have a tenant that never misses the deadline for rent and consistently takes care of the property in no time.
3. Higher Tenant Retention Rate
A low tenant turnover rate means fewer costs and headaches associated with the turnover process. That includes changing the locks, repainting the walls, exhaustive cleaning, and the like. You also don’t need to go through the entire process of finding and screening tenants all over again. Plus, when you have a great tenant, you naturally want to keep them from moving out.
As a landlord, you want to minimize turnover and improve your tenant retention rate. A rental property management company can do that for you. Such companies usually have retention tactics that keep tenants happy and satisfied with their accommodations.
4. Set the Right Rental Rate
How do you know whether or not you’re charging the right amount of rent? Although researching the average cost of rent in your neighborhood is a good place to start, property management companies have more thorough ways of setting the right rental rate. They usually conduct in-depth market studies that allow you to charge the highest rate possible without sacrificing your vacancy rate.
5. Collect Rent With Ease
Does a property manager collect rent? Yes, property managers and companies do handle rent and all the issues related to it. Apart from setting the right rental rate, rental property management companies also collect rent on your behalf.
By making use of their services, you can save yourself the trouble of constantly following up with your tenant about the rent. Though, if you already got their help, to begin with, you probably already have a quality tenant that pays rent on time.
6. Cost-Effective Maintenance
How much does it cost to have a rental property managed? Although professionals do charge a fee (usually 8 to 12 percent of the monthly rent), the cost is certainly worth it when you factor in how much time and money you’ll save on other tasks. One such task is property maintenance.
As a landlord, you must protect your investment and keep your tenants satisfied by performing regular maintenance and repairs. This type of work, though, can cost a lot of money. Instead of hiring different vendors for each service, you can take advantage of a property management firm’s in-house maintenance staff. This is much cheaper compared to managing maintenance yourself.
7. Access to Trusted Vendors
Some property management services don’t have in-house maintenance personnel, but that doesn’t mean they’re any less good. Most companies have a wide network of tried-and-tested, licensed, and insured contractors. These preferred vendors can give you cheaper rates while simultaneously performing quality work. Who knows? You might even get discounts and freebies.
8. Deal With Legal Issues
There are a lot of federal and state laws to keep in mind when you’re handling a rental property, such as Fair Housing laws and Landlord-Tenant laws. Such laws cover several areas of rental management, such as tenant screening, property conditions, lease agreements and addendums, lease terminations, evictions, and even rent collection. One misstep (or perceived misstep) can land you in hot water.
With the help of professional rental management services, though, you have someone who can navigate the rental process while avoiding legal problems. Hire a property management company to ensure compliance with federal, state, and local laws.
9. Help With Taxes
Tax season is always troublesome, but a property management company can make it more bearable. These companies have a better understanding of tax laws, which means they can tell you which expenses are tax-deductible and which ones aren’t. They can also help you with the necessary forms and supporting documents for those claims. Even the fees property management companies charge can be written off from your taxes.
10. Avoid Management Headaches
How do you manage a rental property? There are so many moving parts and tasks associated with rental property management that it can feel overwhelming. It can even take a toll on your physical and mental health. Everything from tenant screening and rent collection to dealing with legal issues and taxes can weigh on you.
A professional service, though, has the necessary resources and rental property management software to make the process smoother. Plus, you don’t need to hire employees or balance management tasks with your personal life. It’s also a good idea to turn to a property management company if you have a regular 9-to-5 job, live far away from your rental property, or are just not interested in property management.
11. Reap Personal Benefits
Let’s face it — rental property management demands your time, attention, and effort. If you have none of these to spare, then a rental management company is your only choice. With professional help, you can look forward to less stress and more freedom. You’re also free to invest in other properties that don’t necessarily need to be near one another. Considering all these benefits, the property management company fees will surely be worth it.
The Final Decision
Should I use a property management company for my rental? As a rental property owner, you want to make the most out of your investment. A good way to do that is to hire a rental property management company that can perform related tasks effectively and efficiently.
Start your search for the best property management companies in your area with the help of Rental Choice. Our online directory makes it easy for you to find and choose a company worth your time.
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