Managing a rental property can be challenging, and if your rental property business is growing and you have more than one property, you may have difficulty managing it on your own. Hiring a property management company can improve the rental process in ways that can create more business success for you. Here are some of the reasons why it makes sense to use a property management company.
7 Ways Property Management Companies Can Improve the Rental Process
They know the law
If you don’t know landlord/tenant laws, you may inadvertently break them. This is a risk you take when you manage your own properties and can result in an expensive lawsuit and negative publicity. Property management companies stay updated on any changes in the law, local rental rates and other issues related to real estate. If you can avoid one lawsuit by hiring a property management company, you will have enough money to pay the fees and avoid wasting your time and energy.
Using a Chattanooga rental agency such as Evernest, RPM and Rock Point means property managers are fully aware of federal, state and local landlord/tenant laws. This can help you to avoid lawsuits and any legal issues related to your rental properties.
They know how to find good tenants
Poor tenants create problems and cost landlords money. You need to find good tenants who pay their rent in full and on time and will look after your property. To find tenants like this, property managers have procedures, methods and strategies in place. They know all the red flags to look out for when selecting suitable tenants.
They have reliable systems that help them to establish that prospective tenants have a verifiable income, a good credit score and good references. Property managers may get you to help with the final vetting of a tenant once they have been through the preliminary screening process.
They communicate clearly and frequently with tenants
Communication with tenants starts with the tenant screening and the lease agreement. The lease agreement should clearly outline the responsibilities of the owner, the tenant, and the property management company. Discussing it with the tenant is important for complete clarity. The data system of a property management company should store key documents and make sure they are accessible to owners and tenants to prevent any miscommunication.
Property management services, including a property management company often provides convenient online resources for tenants. These resources may include templates available on their websites, such as maintenance request forms that tenants can easily access, download, and submit whenever they require assistance or have a maintenance request. This streamlined process enhances communication and ensures that tenants can conveniently address their needs and concerns with the property management company.
They use the right technology
The property management industry is evolving rapidly as software, mobile, and cloud solutions, such as motel booking software have now become available. These solutions make processes easier and more efficient.
For example, property management companies may utilize lease portfolio automation software to streamline lease management. Lease automation software works by using RPA (Robotic Process Automation) to remove cost, risk, and time from the leasing process, simplifying the lease lifecycle and limiting the risk of accounting non-compliance. When software such as this is utilized by a professional and used alongside owner and tenant portals containing payment information and other important facts about properties, the entire lease process is optimized, allowing you and your in-house team to move away from repetitive clerical tasks and tackle more strategic projects and high-value decisions.
Additionally, as a landlord, you simply may not have access to the technology and resources available that can significantly enhance operational efficiency and accuracy. Because of this, it is often worth taking the leap and investing in the services of a reputable property management company.
They handle rent collection efficiently
Handling rent collection and late fees is an important aspect of property management. Rent must be collected on time each month to ensure a consistent cash flow. You may find that tenants seem to walk over you when it comes to collecting rent. Having a property management company collect rent puts a buffer between you and tenants. They often have tenants pay their rent online, which makes collection quick and convenient.
Eviction is a tricky issue to deal with, and you can’t just lock bad tenants out of the premises. There are strict laws that regulate the process, and property management professionals will follow the process stipulated by the law.
They know how to retain good tenants
Property managers, such as Patrick Leo property management, understand the significance of retaining high-quality tenants due to their scarcity in the market. Replacing tenants can be a costly endeavor, involving the entire process of marketing, screening, and property preparation. A prolonged vacancy can also result in lost rental income. Entrusting your property to a management company ensures that vacancies are minimized. This expertise-driven approach guarantees a steady stream of reliable tenants, preventing extended periods of vacancy that can adversely impact your rental income and overall property investment.
They will maintain the value of your rental property
The best property management companies will promptly deal with any maintenance and repair problems. They will also do ongoing maintenance, which can prevent problems from developing in the first place. Preventative maintenance means they perform regular inspections, have a written maintenance schedule and retain detailed documentation. These companies often have a professional network of licensed and insured contractors who offer quality work at a good price.
The bottom line
Using a property management company offers many benefits and will save you stress, time and energy. You will no longer have to deal with late-night emergencies, chase after rent, and manage late fees and evictions. Your time is best spent on growing your business rather than micro-managing your properties. By hiring a property management company, you have the potential to add value to your rental property investments and experience more success.
