For anyone who owns rental properties, it’s important to understand the benefits of a property management company. You probably chose rentals to increase your return on investment (ROI), expand your portfolio, and create a steady stream of passive income. However, taking care of your investment can mean you’re putting in a significant amount of effort which could be better spent elsewhere. Hiring a property management company can save you time and allow you to grow your business by putting that valuable time back on your calendar. A property management company will allow you to streamline your business by taking care of the most time consuming and daunting tasks. We’ll dive into some of these tasks, which are advantages of hiring a property manager.
1 - Pricing the Rent Correctly
Maybe you’ve looked into what other rentals are asking for in your area and priced your rental accordingly. How do you know what your property’s true value is? In what ways do you compare to others? A professional working in property management understands the nuances of market studies and knows how to ask for top dollar while keeping your rental occupied. One misstep in pricing could end up costing you thousands of dollars.
2 - Marketing and Advertising
Property management companies know how to target the right renters for your property. Oftentimes, property managers have staff dedicated to this area alone. Property managers spend money on marketing and advertising that most individuals don’t have. Any property owner who puts in the same amount of time and money in marketing and advertising as a property management company will greatly lower their ROI. Letting a professional target the right market for your rental saves time, keeps the property occupied, and helps avoid time between tenants.
3 - Finding the Right Tenant
It’s important to get a quality tenant who pays the rent on time, takes care of your property, and abides by the contract. To find this type of person, it’s necessary to do a complete background check, including checking all references, doing a credit check, a criminal background check, talking to previous landlords, and verifying employment. All of this verification is easily taken care of by a property management company that knows how to get this information fast in order to get the best tenant into your property – not to mention doing it quickly.
4 - Collecting the Rent
Even if you’ve done your due diligence in checking out a renter, there always seems to be one bad experience for all property owners who do it themselves. Whether you get someone who loses their job or doesn’t live up to their credit check, it’s inevitable you’ll get a renter who simply doesn’t pay on time. A property management company can do it the hard work for you – from contacting the renter about a late payment to making sure the money gets to your bank on time.
5 - Invest Where It Makes Sense
When you choose to use a property management company for your rentals, it opens up a wider range of locations for investment and tenants. It doesn’t make sense to buy a rental property far from where you live if you’re doing it all yourself. There should always be someone keeping an eye on your investment or you could find your property being abandoned, used for illegal drugs, or just not being taken care of properly.
By using a property management company like Star & Stripes Homes, Inc., you don’t need to worry about being in town to make sure everything is running smoothly. You’re free to move where you want, when you want – knowing that your investments are being taken care of by a team of professionals who are working with your best interests in mind.