Owning a property for rent can increase your passive income but it is also a full-time, hands-on job. You should expect that managing a property entails a lot of responsibilities and unless you’re a micro-manager, dealing with them can be quite challenging and exhausting. Your option – hire a property manager that can do all the legwork for you.
Before you acquire the services of a property management company, you should know more about what it can do for you. Property managers, as daybreakliving.com explains, can perform a wide variety of services, extending beyond tenant screening and rent collection. Here are some of the responsibilities that property managers can do for a land or home owner.
Almost all matters that are related to tenant-management are handled by property managers. They can advertise your rental and provide advice on how you can make your listing more appealing to people who are searching for properties to rent. They also have access to a network of renters, so they can screen candidates better by running a credit check and investigating on their rental history. While there are laws that prohibit renter discrimination, this process will help you find the suitable tenant for your property. Property managers will also meet with potential clients to show them the property and close the deal, things you might not have time to do if you have a day job.
The property manager is the initial point of contact for all communication, complaints and concerns related to the rental and he will also resolve those issues for you, unless they will need your attention or decision.
Property managers are knowledgeable of property management, taxation and landlord-tenant laws so you can make sure that your lease agreements comply with state laws and worry less about facing a potential lawsuit. They are also connected to professional groups and associations so they are always updated about rental laws and policy amendments. In case you have to deal with concerns such as eviction, lease termination or rent collection, they can provide you with legal help from one of their affiliated lawyers.
Property Inspection and Maintenance
Property management companies keep a schedule for conducting routine inspection and maintenance checks to ensure that your property adheres to building, health and safety codes. In case anything needs to be repaired, they can easily hire the right person to do the maintenance or repair job from their network of contractors.
Rent Collection and Other Administrative Duties
Dealing with a tenant who does not pay on time can be frustrating and time-consuming. Property management companies enforce stricter rules on rent payment schedules and late fees collection. They can also suggest adjustments on rental fees based on existing market rates.
Aside from rent collection and adjustment, property management companies will also handle budget and records management. They will work around your set budget and make sure that all income and expenses are properly recorded and kept.
Choosing between self-management versus hiring a property manager is a serious decision for a business owner. Hiring a property manager can mean an additional cost but if you don’t have the time to manage the nitty-gritty details of renting out a property, it may be the best way to go.