Are you part of the approximately 28.1 million Americans who consider themselves to be real estate investors? Do you rent out your property to tenants?
If you do, then you know how frustrating it can be to try and keep up with tenant needs. This is especially true when you own several different properties.
If you’re struggling to keep up with the demands of landlord life, you may want to consider hiring a property manager.
Read on to learn about some of the greatest differences a good property management company can make for you and your tenants.
What Is a Property Management Company?
A property management company takes over a lot of the heavy lifting associated with being a real estate investor.
When you have a property manager on your side, they will handle issues that relate directly to your tenants and prospective tenants. This includes things like collecting rent, handling repairs, and responding to complaints. They can even pursue evictions and market your properties for you.
This gives you peace of mind knowing your property is looked after, but it frees you up to focus on other business endeavors.
Why Hire a Property Management Company?
A good property management company can bring a lot to the table. The following are some of the main reasons why you may want to consider hiring one:
Increased Revenue
Many real estate investors are hesitant about hiring a property management company. They assume that paying someone else to manage their properties will equate to fewer dollars in their pocket.
The truth, though, is that outsourcing your management responsibilities can help to increase your revenue long-term.
When your properties are managed well, tenants will be more inclined to stick around. You also have more time to focus on acquiring new properties to bring in even more revenue.
Save Time
Speaking of time, hiring a property management company gives you more time to focus on the tasks you enjoy. You won’t have to worry about responding to tenant complaints or wasting time interviewing possible tenants to fill a vacancy. All of that will be handled for you.
Reduce Stress
The right property management company can also help to eliminate stress.
You’ll be able to sleep soundly through the night without having to worry about getting a call about an overflowing toilet. You also won’t have to deal with the stress associated with evicting bad tenants or making repairs.
You don’t even have to deal with many of the common hassles of managing an employee since property management companies work with you as independent contractors.
Attract Better Tenants
When you have a property management company marketing your rentals, you’ll likely find that you’re able to attract better tenants.
They have access to a bigger pool and know where to advertise to bring in the right people. Their screening process will also minimize the likelihood that you’ll end up with tenants who damage your property or cause problems with the neighbors.
Comply With the Law
You may be a real estate investor, but that doesn’t mean you have time to spend learning the ins and outs of real estate laws in your area.
If you want to make sure your properties comply with the laws but don’t want to do the legal research, working with a property management company is a smart strategy.
They know the laws inside and out and will ensure everything about your properties and practices is up to code.
How to Choose the Right Company
The key to experiencing all the benefits listed above is to ensure you’re working with a good property management company. Here are some tips to help you determine whether or not it’s worth it for you to hire a specific company:
Ask for Referrals
If you have friends or associates who are also real estate investors, ask them which property management company they use. Getting a referral from someone you trust is one of the easiest ways to ensure you’re working with a good company.
Set Up Interviews
Once you’ve gotten some referrals or have a few other candidates in mind, it’s time to set up interviews.
Most property management companies make it easy for you to contact them and schedule a time to meet in-person or over the phone. If a company is very hard to get ahold of, that’s a big red flag.
Ask About How They Handle Vacancies
During the interview process, one of the first questions you ought to ask is how they handle vacancies.
What kind of procedures do they have in place to fill vacancies as quickly as possible? How and where do they market their properties to attract the ideal tenants?
Learn Their Procedure for Screenings and Rent Collection
Ask about their tenant screening procedure, too. Do they conduct background and credit checks? What other processes do they use, if any, to weed out undesirable tenants?
Find out how they collect rent from their tenants each month as well. Do they allow for online payments, or do they collect written checks? How many days to tenants have to pay their rent before they’re required to pay a late fee?
Read Their Reviews
Finally, be sure to read online reviews to get an idea of what other real estate investors have to say. When you’re working with a reputable company, they’ll have plenty of positive reviews for you to check out.
You can visit Bergan & Co online to see an example of the kind of reviews and testimonials you ought to be looking for.
Find a Good Property Management Company Today
Now that you know more about the benefits a good property management company can bring to you as a real estate investor, are you interested in working with one?
If you want to ensure you partner with the right company, don’t forget to keep the tips listed above in mind. They’ll help you find the best company that will take some of the work off your plate and ensure your tenants’ needs are still met.
Are you looking for more retail investment advice? If so, visit the Real Estate section of our site today.