Perhaps you own a single-family home, multi-family dwelling, or a condominium or maybe you are purchasing a piece of real estate and want to rent it out rather than sell it, if so you should consider hiring a property management company. Say you have inherited a house or are relocating. Maybe you finally saved enough for your first investment property in the San Francisco-Oakland area with its pricy rent prices. No matter the reason, hiring a property management company may be the wisest business decision you ever make.
First, what is a property manager? A property manager is a real estate professional who oversees the entirety of rentals. This includes knowing how to price rental property, tenant relations, tenant screening, leasing, maintenance and repairs, finances, insurance, property inspections, sending notices, managing staff, knowing tenant rights, and taking care of evictions, along with all other administrative duties every business has.
Now, the 6 reasons why need a property management company.
1. ROI — Return on Your Investment
The ROI on your investment depends on 1 thing: Always having a tenant paying rent on your property. Among its many services, a property management company ensures when one tenant moves out, another one quickly moves in. Yes, there is a cost, but the fee easily pays for itself with your ROI. Do the math: X% (management fee) of received monthly rent < 0% (management fee) of no received monthly rent. For estimating purposes, the standard property management fee is 8% of rent.
2. More Leisure Time for You
Any property manager will tell you it’s an around-the-clock job. Plumbing emergencies don’t follow a timetable, unless it’s 3 a.m. or just when you are about to take the long-awaited weekender out of town. You know what does follow a schedule? Paperwork. Mounds of it — 3-Day Notice to Quit, returning deposits, collecting and recording rents, keeping up on tenant rights, tenant disputes, and so on.
3. Extensive Screening Process for Quality Tenants
Quality tenants protect your investment. Good credit scores, though, don’t necessarily make good tenants as they don’t necessarily give Unlawful Detainer (eviction) info. That’s why Place Tenants’ exacting process — conducting credit inquiries, employment verifications, renting histories, background checks, and rental risk assessments — results in inviting responsible tenants to a secure and successful rental environment. And you don’t have to spend the time doing it yourself.
4. List Your Rental and Determine Rent Price
Quick! What are the variables in determining San Francisco-Oakland rental prices? How about Las Vegas rental prices? Where should you list your rental? What’s the security deposit? Pricing a rental property is more complicated than covering your costs and tacking on something extra for yourself. A property management company investigates rental competition and other factors associated with setting the price in addition to marketing the property. Of course, a landlord can take the time to do this on their own with software.
5. Better Maintenance Response Time
“I love maintenance issues,” said no landlord ever about their rental property whether it be in California, Nevada, or elsewhere. Broken appliances, overflowing toilets, and their kinfolk are huge inconveniences and usually require more skill and tools than even the handiest of property owners possesses. Property management companies have a team of vendors to comply with tenant rights and resolve maintenance issues, stat!
6. Shorter Vacancy & Tenant Retention
Happy tenants = Shorter vacancy periods = Better profits. A property management company does the due diligence necessary to make your investment a profitable one. It finds the most responsible tenant suited to a specific property and takes care of the tenant’s needs, lessening expensive turnover The typically reasonable fee (be sure to shop around) is offsetted by your ROI.
Still not convinced a property management company is right for your investment? Then may we recommend the book First-Time Landlord. Its 336 pages are filled with the ABCs of property management to get you started. Or you can call Place Tenants at 800-886-1193.
