For most people, the thought of having steady rental income is incredibly appealing. But the idea of having to deal with actual renters? Not so much. The mere idea of a pipe breaking in the middle of the night or a nightmare tenant is enough to make most people shudder and push the rental property consideration from their heads.
However, there is a way to have steady rental income without the hassles: A property management company. Yes, they’ll take a small cut of your income, but in return, you’ll get time, peace of mind and so much more.
Reasons to Hire a Property Management Company:
- Tennant screening. They’ll find the right renter for you. Let them go through the background checks and credit applications. They also know what raises a red flag on an application.
- Avoid legal problems, financial pitfalls and scams. TransUnion reported that it costs landlords about $1,917 to evict a resident. The credit reporting agency recommends that property managers report rent payment history as a way to help renters improve their credit score and improve risk management for landlords.A skilled manager understands landlord-resident laws governing resident rights, eviction processes, and safety. A few other potential legal issues include Discrimination, leasing disclosures, rent collection and late fees, notification, and access for inspection, licenses and permits.
- Property managers are the point of contact. Whether you have a tenant complaining about a neighbor's dog barking or something breaks in the middle of the night, the property manager will take those calls, day or night and find someone to handle any required repairs.
- Ensure rent will be paid on time. Most property managers deduct their fees from the rent, so they’re motivated to collect payment, and not afraid to enforce the lease or serve an eviction notice, if necessary.
- Decreasing rental turnover. Property managers know how to keep renters happy because they're responsive, available and know how to take care of problems. Happy tenants are less likely to look for another place to live.
- Increasing property value. Preventative maintenance inspections, repair or replace policies for appliances and initiating property upgrades to stay competitive protect assets and increase value. Property managers stay in constant communication with owners about steps they can take to manage property value in the marketplace.
- Property management companies allow you to enjoy the benefits of property ownership without giving up personal freedom. They reduce stress and headaches, which most of us find a valuable benefit!
If you just want a rent check and don’t want to be responsible for all of the details of your real estate investment, leaving it up to the pros can be well worth the cost.