You’ve made the step to investing in real-estate. Now you want to make sure that you can maximize your return on investment and do so while minimizing the headaches with which you have to deal. One option is to hire a property management company to support you and your investment. What services can a good property manager provide?
#1: Filling Empty Rentals
An empty property isn’t earning you money. You may be struggling to bring in renters, and there may be several reasons why. Perhaps you are struggling to price your properties appropriately or can’t quite figure out how to sell them effectively. A good property management company can bring many skills to the table to help you out. A good property manager will have their ear to the market in your area. They will be able to follow trends and make sure that your property isn’t priced too high or too low. They will know how to reach out to a pool of tenants and can market your property effectively. When they bring potential tenants in, a professional will have the skills to close the deal and turn a potential renter into a guaranteed thing.
#2: Keeping Up Appearances
A property management company can help to keep up a formal “facade” for your tenants. Having official letterhead on communications or dress code or uniforms on staff members can help tenants feel more secure. A perception that they are dealing with an official organization can help with your retention rates and even limit the degree to which “professional tenants” attempt to scam you or otherwise play games with your time. This sort of image may also keep even otherwise good tenants from slipping on rent payments or ignoring minor rules.
#3: Liability
A homeowner’s insurance policy will typically not cover a property that you are renting out, and it’s a good bet that you will need some landlord liability insurance to cover tenant injuries or other emergencies that may arise. This sort of coverage would kick in to cover you for any necessary legal defense should a legal issue arise and can give you peace of mind in knowing that you have a safety net in place.
#4: Fleet and Equipment
You’ll need to pay attention to the care of the grounds and exterior of your property. A property management company can bring the necessary equipment to bear to help you, whether by hiring the right contractors or providing a selection of vehicles and maintenance equipment themselves. Regardless of the specifics, you can rest easy knowing that someone is there to meet your needs and that you will have a fleet of vehicles and the right equipment at your beck and call.
#5: Policy
A property management company can help you ensure that your policies and procedures are airtight. There is a lot of legal complexity that goes into the landlord-tenant relationship, and an experienced property manager will know the details, where to go in the event of trouble, and how to stave off problems from the start. Paying this cost up front can save you trouble down the road with tenant disputes, evictions, potential lawsuits, and more everyday interactions.
#6: Tenant Screening
Poor tenant selection brings out many problems. One of the best things that you can do as a landlord is to screen your tenants effectively right from the start. This process keeps bad renters out and ensures that you bring in people who are a good fit and can provide you with reliable rents. There are often laws that govern this process, and these can vary from state to state or city to city, so hiring an excellent local property management company can help keep you in legal compliance as well.
#7: Potential Disputes
A property manager can also help you to navigate potential disputes. While it’s not a pleasant part of the business, a property manager can put you in touch with legal advisors or even be a mediator to help resolve disputes. They can help with issues that might arise between tenants. They can keep your documentation clear and consistent, and be a resource to ensure that your tenants understand your policies. A good property manager can also deal with conflicts at a local level before they even need to reach your ears.
A good property manager will bring a lot to the table. They can help you fill your properties, keep your tenants feeling secure, connect you with a number of resources, and handle a lot of legal headaches. How can you put these skills to work for you?
Take the first step by downloading our free guide to selecting the best San Diego area property management company. Just enter your name and an email address, and you can be on your way to investment success and full properties that are earning you money.
