- Setting the Rental Rates
- Maximizing on the Profitability of Your Investment
- Collecting as Well as Depositing Monthly Rent Payments
- Maximizing Your Time’s Profitability
- Advertising and Marketing the Property
- Making it Possible for You to Invest in Geographically Distant Properties
- Finding the Best Tenants
- Making Sure that You are Fully Compliance with Property Laws and Local Regulations
- Managing Vendor Relations
- Tenant Management
As a property owner, one of the biggest decisions you need to make involves determining whether you need the services of a residential property management company or not. Many landlords choose to manage their assets with the help of an employee, e.g., a resident manager, or on their own. But there are instances when the landlords require professional help, and this is where a property management company comes in.
A residential property management company deals directly with the tenants and prospects. In the process, they get to save you worry and time that would have gone into marketing the rentals, handling repair and maintenance issues, as well as collecting rent. Using their services also means that you never have to worry about pursuing evictions or even responding to complaints raised by the tenants.
Additionally, the management company brings on board its experience and technical know-how to your property, which helps give you peace of mind that can only come about after being assured that your property is in the right hands.
Below are top 10 benefits of why you should hire a residential property management company.
Setting the Rental Rates
Although going through the classifieds sections in your local dailies is a great way to determine what other property owners are charging for their properties, a good residential property management company will carry out a detailed market study. The purpose of the study will be to determine the rates being charged for properties in your local area. This is the best way to ensure that they get to strike a balance between maintaining low vacancy rates and maximizing on the monthly rental income.
Maximizing on the Profitability of Your Investment
Many property management companies charge a percentage of the property’s monthly leasing rates in exchange for their professional services. The rates charged are way less than the total amount of money that you would have spent on hiring a person to manage the property for you. A quality manager will help you maximize your cash flow and leisure time.
Collecting as Well as Depositing Monthly Rent Payments
Any person who has ever worked in a billing department, even for a single day will tell you that collecting payments from clients tends to be a very difficult task. In addition, it can also be very awkward. Property management firms have true-and-tried systems in place for collecting monthly rent as well as ensuring that payments are made on time. Their systems are also very efficient. A person with a limited number of rental properties, and who needs to maintain a consistent flow of cash will find these systems to be very crucial.
Maximizing Your Time’s Profitability
When you hire a property manager, you get to hand over all the day-to-day management tasks to them. For you, this means that you will now have more time to spend on looking for new investment opportunities or in advancing your chosen career.
Advertising and Marketing the Property
A residential property management firm will normally hand over your property to one of their experienced staffers. The manager that has been placed in charge will know when and where to market the property, as well as techniques to use in creating compelling, and engaging marketing information. This is an important advantage if you want your properties to fill in at a quicker pace, as well as avoid the long vacancies that are likely to happen when no marketing is being done.
Making It Possible for You to Invest in Geographically Distant Properties
When you are responsible for managing your own assets, you become limited in terms of the locations where you can invest. In such cases, you will find that you can only invest in properties that are very close to your home. Hiring a property manager is advantageous in that you will no longer be limited in terms of locations where you would like to make an investment.
Finding the Best Tenants
Experienced asset managers are experts when it comes to finding the right tenants for your properties. They will also handle all the other details that come with renting out a property such as a running security and criminal background checks, collecting references from previous landlords, verifying employment information, and running credit report checks.
Making Sure that You Are Fully Compliant with Property Laws and Local Regulations
When leasing out and maintain a residential property, there are a number of laws and regulations that you will need to abide by if you do not want to be on the wrong side of the law. These will include federal, state, and local regulations as well as housing regulations, e.g., ADA. A residential property manager will be able to help you avoid lawsuits by ensuring that the property is up-to-date and that it has fully complied with all the applicable regulations.
Managing Vendor Relations
A property manager will normally have a relationship with vendors, maintenance workers, suppliers, contractors, and tradesmen. Such relationships are very hard for the landlord to be able to duplicate on their own. As such, the property manager will not only be able to get you the best vendors for the best rates, but they will also be present to oversee all the maintenance work being carried out.
Apart from finding the most suitable tenants, the residential property management firm will also manage all aspects of the landlord-tenant relationship. The firm will handle all emergency and routine maintenance work, manage any situation requiring conflict resolution, as well as ensure that routine inspections are carried out on time.
Owning a residential property is a smart investment decision, but it also comes with its own share of responsibilities. These are responsibilities that can easily get out of hand if they are not properly managed. To ensure that this does not happen, there is a need to hire a property management company to help you with managing the day-to-day affairs of your properties. As seen above, there are many benefits that come with hiring such a company, and one should not have to deal with all the property management related issues when they can easily hire someone else to do this work.
Kunkel Wittenauer Group has been serving as a residential property manager for over three decades in the Metro East region including: O’Fallon, Edwardsville, Shiloh, Belleville, Alton, Highland, Godfrey, Swansea and more! To learn more about how we can help manage your property, contact us today.