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.
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 often make use of templates on their websites. For example, they may upload maintenance request forms, so tenants can download and submit them whenever they have a request.
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 have owner and tenant portals containing payment information and other important facts about properties. As a landlord, you simply may not have the technology and resources available that property management companies use.
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 know the importance of retaining good tenants because they can be hard to find. It can also be expensive to replace tenants as you have to go through the whole marketing and screening process again. You have to make sure the property is in good condition too. You may lose out on rent if you struggle to find a new tenant. Using a property management company ensures that your property won’t stay vacant for long.
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.