If you are the owner of a rental property and are seeking to generate steady, long-term income, the services that a property management company can provide are essential. Many landlords choose to manage their properties on their own but this can be a challenging undertaking. A reliable property management company can give you the extra help that you need.
While many new rental property owners may think that property management companies simply collect and cash rent checks on their behalf, this is far from the truth. Today, we’ll be exploring what a property management company does and how you can utilize their services to simplify the renting process.
There are a number of tasks that a reputable property management company can take on for you. From answering calls regarding broken appliances and maintenance requests to staying up to date on federal, state, and city regulations, there is much that a property management company can take off of your plate.
The main role of a property management company is to protect your initial investment as a property owner in an effort to keep this valuable method of generating passive income, well, passive. With that being said, let’s get in-depth with all of the things that a property management company can do for you.
Ask any landlord what the most demanding part of the rental process is on a consistent basis and you’re likely to receive the same answer: responding to maintenance requests. One of the main benefits of owning a rental property is the ability to generate passive income. Unfortunately, the responsibility to handle maintenance requests can demand a lot of your precious time- making this variety of passive income feel anything but passive.
Regardless of how responsible your tenants are, maintenance requests are inevitable. Appliances break and systems wear down over time and no amount of preparation can eliminate the chance of these occurrences entirely. While it may be challenging to juggle several maintenance requests at once, it is important that these requests are attended to in a timely manner. After all, when your tenant feels that you care enough to respond to their requests quickly and efficiently, they will be much more likely to extend the same care to the property during their time there.
By utilizing the services of a reliable property management company, maintenance requests can be handled with care without demanding your time. Property management companies seek to eliminate the hassle that maintenance requests cause a landlord. This is done by taking on the responsibility of responding to maintenance requests quickly, solving the problem, and preventing code violations.
Considering that an attention to maintenance is such a key part of managing a rental property, the ability to stay on top of regular maintenance can significantly reduce the risk of bigger problems emerging in the future. It’s easy to get behind on regular maintenance efforts when you’re handling everything on your own and this is a very unnecessary risk to take. By working with a property management company, you prevent further issues and effectively control maintenance costs.
A property manager acting on your behalf can conduct the necessary periodic property inspections in a proactive effort to ensure that your tenants are complying with the standards set by their lease and fix anything that is in need of repairs. This offers you, as the landlord, a number of benefits. For one, you will be spared the stressful search for a trustworthy repairman to handle issues. It is likely that your property management company will either know a reputable vendor or possess their own in-house maintenance team. Larger property management companies with their own in-house maintenance teams are especially valuable as they may receive preferred pricing from local vendors- a discount that extends to you.
Staying up to date and informed on landlord-tenant laws can be a challenge, especially for landlords that own rental properties in a number of different locations. Without staying up to date on the necessary laws and regulations in your area, you are risking your own protection as a property owner. If you utilize an online lease agreement for signing, for example, you will want to make sure you are aware of the applicable laws and that your lease complys. If anything isn’t up to standard, you can find yourself in damaging situations that can negatively affect your investment.
A successful property management company can simplify this for you. Your property management company will be able to not only keep up to date with laws, regulations, and ordinances, but also have the knowledge to address them correctly. This will eliminate the possibility of any landlord-tenant law issues from the very beginning, saving you a serious headache.
One of the most important benefits that a property management company can offer is a thorough tenant screening process. This is one of the most important ways to ensure a reduced risk of financial loss when renting out your property. Property management companies are able to run each prospective tenant through an extensive screening process that performs background checks including a look at credit, rental history, employment, and criminal background. These background checks will also be verified to comply with all standards set by fair housing and discrimination laws. This process plays an integral role in helping you find the best tenant for your property and reduce the risk of unnecessary financial loss due to an irresponsible tenant.
Upon the approval of an applicant, your property management company will share their results with you. If you choose to move forward with the applicant, your property management company will then collect the security deposit in the proper method. The security deposit will be held in escrow, in accordance with laws and regulations, to ensure that funds aren’t co-mingled.
By working with a property management company, you can be sure that the rent you are owed from your tenant is collected and cleared. Professional property managers also handle all landlord-tenant interactions and can help you to effectively communicate all expectations up front. In the unfortunate case of having to deal with collections and evictions, your property management company will also be responsible for the process.
Finally, property management companies effectively reduce your overall costs of management. It is a common myth that the best way to save money when renting out your property is to handle all aspects of management on your own. In fact, new rental property investors will do best to work with a property management company as much less of their time (and, as a result, money) will be demanded.
To see just how much money a professional property management company can save you, perform a simple calculation by multiplying your regular hourly wage by the number of hours you would find yourself managing your property on a monthly basis. This can give you a peek at just how much you would be spending by taking on property management responsibilities all on your own. When compared with the costs of hiring a reputable property management company, the chance to reduce your overall costs of management are abundantly clear.
Now that you have a good understanding of what a property management company can do for you, it’s time to find the best. Luckily for you, you won’t have to look far! Metropolitan Real Estate is the number one choice for property management in the Phoenix area and we’re ready to work with you.
With 27 years in business, Metropolitan Real Estate is Phoenix’s largest privately owned property management firm. We believe that the key to ensuring your success as a rental property owner is complete transparency and effective communication. Curious to know how much your investment property will rent for? Take our free rental analysis today to see just how much you can make off your investment!
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