Owning investment property is something that most people dream of since they can possibly generate monthly cash flow. It is important to note that an investment property is only generating cash flow if someone is actually renting the home or apartment, not damaging the property and ultimately paying on time. Once you have a tenant that begins to violate one of these conditions, managing rental property can become a headache, stressful and ultimately very time consuming. This is where hiring a property management company can be a good idea. A management company will save the landlord money, time and alleviate stress when situations arise.
Background Checks & Credit Checks
Shockingly, many landlords do not run credit or background checks of possible renters. Many times, they just don’t have the energy, time, or they just don’t know how to actually run a credit or background check, so they completely ignore them. Choosing a tenant without running a property credit history and background report is a recipe for disaster. A quality residential property manager will handle this process from start to finish, so the likelihood of on-time monthly rent payments is very high.
Even if you are unaware to specific laws in your state or city, it doesn’t excuse you from the repercussions. Management companies will guide you through the many state and local laws. Hiring a property manager will take the burden of handling evictions, inspections, negotiations, rent collection, and termination. Knowing how to handle each of these situations, legally, will help you avert lawsuits and any legal issues that may arise.
Making money is the most important thing to a landlord. If you can’t collect rent or are not comfortable the stress of collecting rent, you may need help. A management companies job is to collect rent, on-time, each and every month to ensure cash flow for the landlord so he or she can pay bills relating to the property. Rent collection that is consistent month-to-month, is the best way to have a property that generates solid cash flow. We often see that landlords are a little more lenient on tenants, allowing excuses to dictate when rent is paid. It is important to be understanding, but it is also important set firm payment rules and policies. If the tenant has refused to pay, then the next step is eviction. Navigating the eviction process can be difficult, so as mentioned in the prior paragraph, knowing the local and state laws is incredibly important.
Enforcing the terms in the lease is another stress inhibitor when owning rental property. The lease terms are there to ensure the landlord and tenant are both protected. We often times, see the landlord being the one who holds their end but not the tenant. A property manager will handle all lease enforcement. Lease enforcement can include things like, pets on the premises, breaking the lease early, and handling property damage.
A property management company will help fill vacancies as quickly as possible. An empty unit is a unit that losing the landlord money. A management company will have the tools and strategies in place to get your home or apartment rented as quickly as possible. Shortening the tenant sourcing cycle will put more money in the landlord pocket. Also, in many cases, once a tenant moves out and before another tenant moves in repairs may need to be made. A property manager will ensure that all repairs and maintenance are done promptly.
Kunkel Wittenauer Group, Professional Property Management
We have been saving property owners time, money and stress in the Metro-east for over 40 years. Contact us today to learn more about how we can help you and your property. In addition to residential management, Kunkel Wittenauer Group also excels in commercial property management. To learn more about our commercial property management, click here.