What’s the best thing about running a rental property business? While most people would probably point out its impressive income and investment potential (which are both legit reasons, by the way), the fact that it can provide regular cash flow on complete autopilot makes it even more appealing to many. Is this really possible? Yes, it is, especially if you pass on your landlord’s hat and outsource the work to a professional property management company. The benefits of property management are many, and we’ll go over just a few.
Why Hire a Property Manager?
There are numerous benefits to using a property manager. Here are some of them.
They provide you with better tenants.
Nobody wants to end up with bad tenants. Unfortunately, it may be difficult to identify them from the rest of the applicants, especially if you’re new to the business or are simply overwhelmed with all the work. Tenant screening is not a simple process, so you need someone who has screened hundreds, if not thousands, of tenant applications to help you make the right decision.
Working with an experienced property management firm increases the chances of finding ideal tenants – preferably ones who will stay for the long term, pay rent on time, take care of the property, and spare you from unnecessary headaches.
They act as a point of contact between landlords and tenants.
Dealing with tenants requires time, effort, and patience. Part of the job requires you to be there to address your tenants’ problems no matter what time of day. This can be extremely stressful, to say the least, especially if you have a renter who never runs out of complaints. If you don’t want to deal with such issues, do yourself a favor and hire a professional property manager to take your place.
By outsourcing the work, you can free up your time, be much more stress-free, and have fewer headaches. That’s something money can’t buy.
They ensure consistent cash flow.
Hiring a property manager may entail additional costs, but they can help ensure the profitability of the business. Generally, most property management firms charge 8% to 12% of the monthly rent for their services, while others, like Tenant Planet, offer a flat fee structure. Considering the amount involved, some property owners might think twice about hiring one but the benefits of using a property manager significantly outweigh the cost.
Here are some of the ways in which a property management firm can actually help you make more money from your investment.
- Find high-quality tenants who prefer to stay for the long term. Some may not realize it, but getting new tenants can cost a considerable amount of money. Why? Every time a tenant leaves, you need to prepare the unit for the next renter. This means you need to clean the property, change the locks, do repairs and renovate as necessary, advertise the vacancy, screen potential tenants, and prepare the lease agreement. The costs can easily add up as you wait for the next renter.
- Ensure shorter vacancy periods. The longer the unit remains vacant, the more money you’ll lose. Thankfully, you won’t have this problem if you have a reliable property management team onboard. With their skills and experience, they won’t have any problems marketing your unit and finding new renters.
- Determine the optimal rent rate. Establishing the right rent is extremely important, since setting it too high can frighten potential renters away and leave the unit vacant for longer. On the other hand, you will not realize the full income potential of the unit by setting the rent too low.
- Increase rent collection efficiency. An experienced property management can work with tenants to collect rent on time every month, and knows how to handle common problems.
They take care of the hard work.
Being a landlord comes with numerous responsibilities. If you’re doing it singlehandedly, you need to promote and market your unit, schedule and coordinate showings, screen applicants, prepare and execute the lease agreement, do routine inspections, take care of repairs and maintenance work, collect the rent, keep up with the mortgage, taxes, and insurance, and manage the books. The list can go on and on.
Don’t you feel you need someone to help you keep up with all these? By outsourcing all or some of the work, you gain more freedom to do the things you want to do and enjoy a more stress-free life without worrying about your investment.
They can help you avoid legal problems.
If you’re not careful enough or are not familiar with the existing state and federal landlord-tenant laws and fair housing laws, you may find yourself in the middle of a nasty lawsuit – and worse, it might be one that you could deservedly lose. Are you willing to risk it? Hopefully not.
By hiring a professional property manager, you eliminate or reduce the risk of experiencing legal problems, along with the unsurmountable stress and costs associated with such unfortunate events, by keeping up with all the required legal requirements.
Explore the Benefits of Property Management with Tenant Planet
In this industry, your property manager can be your best ally. They can help guarantee the profitability of your rental properties, even if you don’t do anything but wait for the rent money to appear in your account month after month.
Managing rental properties can be an extremely difficult job, especially if you don’t have a trusted team of professionals on board. Why do things the hard way when there is an easier way to do it? Instead of stretching yourself to the limit, consider outsourcing the work to a credible property management company like Tenant Planet.
At Tenant Planet, we can assure you that your investment will work for you, and not the other way around. You don’t have to spend another hour marketing your unit to find your ideal tenants, take another phone call to listen to your tenant’s endless complaints, or search for skilled, bonded, and insured professionals to take care of maintenance and repair works. Those days are over! You don’t have to do any of these anymore. We’ll do it all for you.
Are you ready to partner with us? Please visit our main website or request a proposal to learn more about us and our services. You can also email me at parker@tenantplanet.com for your questions or comments.