Why Should You Use a Property Management Company?
Some property owners can be hesitant to use a property management company because of the cost, but enlisting the help of a professional property manager can have many benefits. On average, a property management company will charge between 8% and 12% of the rent, but the cost can be worth it for many property owners. A property management company can help you find the best tenants, maintain the value of your property, and much more.
Your property management company will handle all tenant communications, from the beginning to the end of the lease. This includes everything from new tenant screenings to the final walk-through. The screening process is especially important, and your property manager will know how to properly screen potential tenants.
Screening tenants on your own can be a difficult process, particularly if you don’t have a lot of experience in this area. Property management companies use proven screening methods and know what red flags to look for. Not only does this help you find long-term tenants who pay the rent on time, but it can also help you avoid potential discrimination lawsuits and rental scams.
Fewer Legal Problems
Property managers are experts in rental regulations and know the ins and outs of legislation pertaining to the Residential Tenancies Act. Knowing the regulations protects you and your tenants; it makes sure your tenants have a safe place to live and protects you from potential legal action.
Happy tenants are typically long-term tenants and you put yourself at great risk if you are not up to date with the latest legislation. A rental dispute can take months to resolve in court, so it’s in your best interest to follow applicable laws carefully. It’s also beneficial to know what is a legal problem and what is not when dealing with tenant concerns. For example, what is legal and what is not when it comes to noise complaints.
Not only can a property management company help you find longer-lasting tenants, but they can help you find new tenants quickly. First off, your property manager can determine the appropriate rental rate based on various market factors. They can ensure you’re charging the right amount to prevent the property from sitting vacant. This will ensure you are making as much profit as possible on your property while decreasing monthly vacancies.
Your property manager can also help prepare your property to attract new renters. They can identify key repairs and cosmetic improvements that are the most attractive for prospective tenants.
Marketing your property is another important way a property management company can help find new tenants quickly. Your property manager will know where to place the ad and what to highlight about the property. Chances are, a property management company will also get a preferred rate for ad placement. Finally, when a prospective tenant does show interest in your property, a property manager will know how to convert them from an interested tenant into an actual tenant.
Easier Rent Collection
Collecting rent is obviously a very important part of being a landlord, but it can also be the most contentious. Your property manager will know how to collect rent efficiently, creating a reliable and consistent cash flow for you.
Most importantly, a property manager can create a buffer between you, the property owner, and your tenants. It helps to create more of a business relationship between the tenant and the landlord, which is particularly important when there are issues with the rent. Your property manager will know how to handle late fees and know what reasons a tenant can legally withhold rent. If necessary, your property manager will also know how to handle the eviction process.
If you own an income property, that means your property and the rent you charge is a source of income. While you do have to pay tax on this income, you can also make tax deductions. Your property manager can help you understand what deductions you can make and assist you with gathering the necessary documentation. As an added bonus, the cost of a property manager is also tax-deductible.
Reduced Repair & Maintenance Costs
Tenants are always happier with a well-maintained property and regular maintenance can help increase the value of your property. Your property manager will know which repairs and maintenance are the most valuable for your tenants and your property. They can also save you money in the long-run by recommending preventative maintenance through regular checks and inspections.
A property management company can also save you money on the repairs themselves. Most property management companies have connections with local contractors. They know who the most reputable providers are and can often negotiate preferred rates. Often, a property management company will also be able to handle emergency repairs 24-hours a day.
A property management company can help you get reliable income from your property and increase its value. Perhaps most importantly though, a property management company can take the stress out of managing your rental units. Your property manager will handle all communications with tenants, including 3 AM emergency calls and complicated legal proceedings like evictions. This means less stress for you as well as more freedom. You’ll have more free time that’s without the constant worry of managing your property.