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Hiring A Property Management Company Tips

property management

Property management companies are growing thanks to a decline in homeownership. So much so that in 2019 annual revenue was $76 billion dollars.

There are currently over 281,000 property management companies operating in the US. However, that doesn’t mean all of them are the perfect match for your needs.

Hiring the right property manager can translate to more time and less stress to deal with. It can also mean more money in your pocket, consistently. This is one of the many reasons why it’s so important to know what to look for when hiring a property manager. Here at Nomadic Real Estate, we know how to help.

Property Manager Roles & Responsibilities

The best way to know how to hire a new property manager who can handle everything is to know exactly what you need. Also, it’s critical to understand exactly what they can do for you. Most property managers or property management companies handle the following duties for landlords:

1. Vet the Tenants

No one wants to deal with bad tenants who make too much noise, destroy property or don’t pay their rent on time. Property management companies run background checks, credit checks and tenancy database checks on potential tenants for you.

Also, a property management company does the research to ensure you end up with responsible and reliable tenants. Having the potential tenant to fill out detailed application forms, asking for personal and professional references, paired with experience determining who to approve and who not to approve – you’re placing your investment in good hands.

2. Rent Collection

Knowing you can count on receiving the rent from your tenants in a timely manner means you can spend more free time doing what you want, run your business better, or enjoy anything else you like to do. Although, this shouldn’t be a common issue if the company you work with vets the tenant well enough beforehand.

3. Deal with Tenant Issues

Even with a proper vetting system in place, there are times people slip through the cracks. Common problems such as; tenants being noisy, not paying their rent on time or causing damage aren’t enjoyable to deal with. With a property manager by your side you won’t need to handle these problems yourself .

Hiring a professional company to manage your real estate means they know the local tenant laws and best steps to take to ensure your tenants behave appropriately. They can also oversee the eviction process if need be.

Property managers also are responsible to deal with tenant issues that arise at all hours. You won’t have to get up at 2 am to deal with a broken toilet, that’s on your property manager.

4. Handle Legal Issues

A good property management company can handle your legal issues for you. They’re well versed in the latest tenancy laws and can take the right and appropriate action to prevent and alleviate legal hassles.

5. Fill Vacancies

Many landlords hire a property management company to ensure all their houses, apartments, townhomes and more are fully rented out, year-round. They can then rest easy knowing they have the opportunity to earn the greatest amount of income possible each month.

And, an experienced manager also knows how to keep your tenants so happy that they continue to stay year after year. It’s much cheaper to keep a tenant than to have to pay money on marketing to find a new one.

6. Manage Repairs & Maintenance

The right property management company handles all repairs and maintenance. That includes everything such as:

  • Equipment
  • Electrical systems
  • Plumbing
  • Building repairs

Not only will the manager arrange for the job work, but they also will monitor the work closely to make sure the work performed is the highest quality and in compliance with all laws.

6. Access to Trusted Vendors

Real Estate requires a lot of upkeep. Hiring a property manager means they should already have a list of contractors and vendors in the area. Ones they know, trust, and are reliable. They know exactly who to call to handle all your plumbing, cleaning, and snow removal issues. Often, those already well-established relationships property managers have can also help you enjoy special rates. The property manager will also oversee all the vendors to ensure they complete their job to fix whatever problem has arisen, and in a professional manner.

7. Handle All Documentation

It’s not just the day to day operations property managers deal with. There’s also a lot of paperwork involved.

A good property management company handles running potential tenants’ credit reports, drawing up the lease agreements, performing background checks, and even handling billing and notices to the tenants.

They’ll also handle other common home necessities, such as negotiating and securing the contracts for all services including moving, trash removal, landscape, and cleanup.

8. Organize Everything

There’s a lot to handle when you’re a landlord, making it difficult to keep everything well-organized.

Thankfully, that’s a job your property management company handles. They’ll keep track of all the details, repair receipts and more so you don’t have to.

9. Tax Deductions

It may be possible for you to claim a tax deduction for the professional services a professional property management company provides. That means you can actually save some money while eliminating a lot of work and hassle for yourself. It’s a win-win situation.

 

Source: Nomadic Real Estate | What To Look For In A Property Management Company

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