Once you have selected the ideal investment property, the next step as an investor is to choose between self-property management and outsourcing. Since each option has its pros and cons, it should be assessed on a case-by-case basis.
Managing a rental property requires a hands-on approach. Self-property management may give you first-hand experience, but it requires a lot of time and effort. While working with a property management company usually comes with a set of fees, their comprehensive services and expertise are a worthy investment.
In this article, we will define what a property management company does and go over the benefits of outsourcing the management of your rental property.
What Does a Property Management Company Do?
A full-service property management company is responsible for the daily operations of your rental property. Below are some of the services that you can expect:
Collection of Rent and Rent Review
Rent is the “life” of any rental property; it’s the reason investors choose to invest in real estate and it’s the key to achieving their investment goals. A reputable property company will prioritize rent collection, ensuring that it’s collected promptly and on time.
Plus, if there are ever any issues with rent collection, such as late payments, you don’t have to worry about handling the situation yourself. You can rely on the property management company you’ve partnered with to take care of it.
A property management company will also occasionally review other rental asking prices. This ensures that your rent takes into account market fluctuations, inflation, and the cost of living.
Property Inspection and Maintenance
Today’s renters tend to pay a lot of attention to a building’s condition. They look for buildings that are aesthetically pleasing and well-maintained throughout the year. For landlords, that requires putting in the hours to inspect the property and oversee any property repairs or renovations.
Property inspection and maintenance is a time-consuming task. You will need to have the necessary experience and technical expertise to identify potential defects on the property. You will also need a reliable network of vendors and contractors.
Make it easier on yourself by relying on the services of a property management company. They can field all property maintenance requests, such as plumbing or electrical issues, and respond to them in a timely manner.
Marketing and Advertising
A vacant rental property often signifies a loss of income. That’s why it’s crucial to keep vacancies to a minimum and attract long-term tenants.
A good property management company has the expertise and experience to market your properties to a wide pool of potential tenants and limit vacancies as much as possible.
Tenant Screening
While finding and securing a tenant is important, it’s important to ensure any tenant you welcome into your property will be a responsible, quality tenant.
A quality tenant is one who pays their rent on time, maintains the property in good condition, and complies with the lease agreement. The best way of finding such a tenant is by conducting thorough tenant screening.
Screening potential tenants includes checking and verifying their background, rental history, employment, income and credit history, and criminal background. A professional property management company has the experience, expertise, and resources to find the ideal tenant for you.
Financial Bookkeeping and Accounting
Managing a property is like running a business. You need to keep a diligent eye on the finances to assess its performance. It is only through accurate and detailed financial reporting that a landlord can accurately assess their property’s performance.
A property management company can help you keep track of your finances and could even help you file your taxes come tax season.
Is a Property Management Company Worth the Cost?
It’s important to start by understanding how much a property manager actually costs. When considering any property management company, ask about their fees. Figure out what services are most important to you and whether the percentage quoted may rise or fall depending on the services offered.
What do you get when working with a property manager?
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Market expertise. Most property companies have been operating for several years and have years of property knowledge. This will come in handy when pricing and marketing the property.
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Tenant management. A property management company can act as a buffer between the landlord and the tenant, and ensure the rental experience is positive for both parties.
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Consistency of rental income. A property manager can make sure you receive your full rental income promptly and without hassle.
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Property maintenance. A good property management company protects your investment. They keep your property in good condition and see to all repairs promptly.
Do You Need to Hire a Property Manager?
To help landlords decide whether they should self-manage or work with a property manager, here are some scenarios to consider.
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Owning or acquiring multiple rental properties. Managing more properties means additional work, so it could be helpful to have an experienced partner by your side.
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Living in a different state. Being a long-distance landlord can come with its share of obstacles, so it may be useful to have somebody nearby who can keep a watchful eye over your investment.
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Lack of time or resources. Property management is about managing tenant expectations, interpreting landlord-tenant laws, and enforcing the lease agreement. Should you find yourself lacking the time or resources to tackle all those responsibilities, consider hiring a property manager.
Conclusion
Are you looking for a property management company in Southwest Missouri and Southeast Kansas? There is no better company than Pro X Property Management. With over a decade of experience, we are relied upon by dozens of property owners in the area. Contact us today!
