Having a property manager running things on your behalf is not compulsory. In fact, there are rental property owners who prefer to manage things on their own because they will have more control on the daily happenings on their property. So why do they hire out professional property management companies?
Hiring a management company to manage your rental units is usually precipitated by a number of things, predominantly caused by the owner’s inability to be in all places at once. A property management company is responsible for:
Managing tenants encompasses the entire process of filling vacant units, tenant data collection and managing tenant welfare.
The management company will ensure that rent is paid on time and meets the pre-agreed amount at all times
- Repairs & Maintenance
Repairs and maintenance are part and parcel of a rental property. A good management company will either have in-house employees who are on their payroll doing all the maintenance work or outsource the technicians from a reliable maintenance company. Proper maintenance ensures that the property is in good shape at all times and that all tenants are satisfied.
- Record keeping
The management company should be able to keep a good account of the goings-on at the property, and ensure they provide up-to-date reports to the owner.
In cases where a tenant defaults on paying their rent for a considerable amount of time and has ignored all notices and warnings, the management company is tasked with evicting such a tenant.
- Tax documentation
There are sometimes additional tax requirements for rentals within a municipality. Some managers will prepare the appropriate documentation for this. Also a profit and loss statement should be included monthly and yearly by professional property management.
Hiring a professional property management company is essential if:
-You have zero experience in management and you don’t have the time or patience to learn
-You can afford to hire their services and still make profit from your rentals
-You have no reservations in allowing a third party to make decisions on the property especially in times of emergency when you cannot be contacted.
-You live far away from your properties
-You want someone who will ensure that your rental units have very low vacancy rates
-You own multiple rental properties and do not have a system in place to efficiently handle everything.
-You want zero management hassles
-Your wish is to remain very anonymous to your tenants
-You want to be a hands-off landlord
-You are consistently increasing your rentals portfolio
-You want someone else doing the dirty work for you when there is a problem
Advantages of leaving it to a professional are:
- It saves you time.
- It saves you from all the nitty-and-gritty involved in dealing with clients.
- It saves you all the stress involved while dealing with maintenance people.
- It frees you from rent collection stress and dealing with errant tenants.
- You never have to go through the trauma of evicting someone from your property.
Evictions can be traumatizing to both parties especially if it becomes messy and a forcible detainer is required. You feel sorry for the evictees, especially if they have kids and it weighs down on you because you feel some sense of responsibility. However, if you have a professional like we have here at RentVest, these tenants are well vetted, have clear expectations from the beginning, and have no excuse when and if the time comes.
Hiring professional property management goes a long way in ensuring that you have experts working for you allowing you to receive income in a stress-free manner. It cushions you from the worry and responsibility and provides a residual payment in your bank account month after month as tenants pay off your mortgage. What other investment on this earth can provide the same?