When managing tenants, finances and property maintenance are just too much to handle, you need to considering hiring a professional in property management.
In every month of the year, you have a lot of challenges to surmount and you’ve likely developed some good property management skills during this time.
Yet at some point, perhaps during during this year, amidst rising time demands and rent payment problems, that hiring a property management company. might be a better route to profitability.
Consider your chief challenges which include unit maintenance, rent collection, tenant communications and management, and daily financial transactions. You spend too much time on them and as your portfolio has grown beyond let’s say 50 properties, you don’t have the same rapport with the tenants.
Big Challenges to Resolve:
- collecting back rent due
- resolving frequent tenant problems
- collecting frequent late rent with no warning
- minimizing cost of unit repairs (hvac, heating, plumbing)
- consistent and effective tenant communications
If cracks are starting to appear and finances are beginning to deteriorate, it might seem counter intuitive to hire a property management services firm. It’s not a cost though, it’s an investment in superior management skills that can help with your current challenges and prevent future ones.
Property Management Company List
If you peruse our list of property management companies, you’ll see many are former landlords, have extensive experience, and are certified property managers. They are worth the 8 to 12% property management fee.
Yes, you could adopt professional level property management software and prioritize your own work and coordinate contractors and maintenance and repairs like they do. But it just seems there are always issues for you being so close to the tenants, who all have unique personalities.
Here’s 5 Top Reasons to Hire a Property Management Specialist Firm
- Professional Distance
Just like social distancing, property managers keep a professional interpersonal distance from tenants which actually increases respect. The tenant/property management relationship is a business relationship, and tenants know this. The firm represents and works on behalf of the landlord, and it’s this relationship and business process used that conditions tenant’s behavior, reactions and responsibilities.
For instance, tenants are more likely to be concerned about paying rent on time with impartial, professional property managers. These companies often use online rent payment software which helps to give tenants more responsibility for paying rent.
This is why there’s a boom in online rent payment apps. It removes one of your time consuming tasks and encourages tenants to take responsibility. It’s subtle but it works.
If there are issues with non payment, property managers have a process to encourage them, and if they don’t pay, a legally permissible process to help them move onto to other accommodations they can afford.
2. Consistent and Low Cost Maintenance
Maintenance is a significant cost factor and these companies have the staff and contractor scale to do the work much more efficiently. From scheduling lawn care to certified technicians handling building equipment care, they are a big help for landlords and HOA’s.
3. Insurance and Legal Liability
Given a property management company has to be certified (in most states) and carry their own insurance for property management, and they know the local laws, this can help you avoid tenant accidents, court appearances, and lawyer fees.
4. More Consistent Cash Flow
Cash flow is vital as you may be discovering now with the rent moratorium. The confusion of city, state, and federal laws is making tenant responsibilities and landlord responses very uncertain. And when tenants balk at paying, you’re in very deep trouble financially.
Property managers know how to handle the situation firmly in compliance with the appropriate laws. Their lawyer can be a great asset too.
Property management companies will be using an automated rent payment platform such as ManageCasa to make paying rent easy and inevitable. They eliminate excuses and provide a third party view of responsibilities to tenants in a firm, and respectable way for the tenant. The combination of an automated rent payment platform and presence of a property management firm does have an effect on tenant attitudes.
5. Tenant Screening
Your choice of tenants will ultimately decide the success of your rental property profitability. Property management firms have a more objective process of screening applicants legally. And you can work with them to attract the tenants you must have.
They also have the advertising, and vacancy marketing power to get maximum reach to the rental apartment market in your area. Just another task to take off your hands and ensure you’re getting long term tenants who can and will pay their rent, no matter what happens.
Scaling up for Greater Profitability
For some rental property owners, the hiring of a property management services company is the beginning of a scaling up process that could be very lucrative for them. Given low interest rates today, lower property prices, there are big opportunities to grow your property portfolio.
When the pandemic ends, the vacant apartments in the city will begin to fill back up. Repairs, maintenance, tenant communications, rent payment and other challenges will still be present however, so you’ll be delighted to have a professional management service team to let you focus on more important elements of your property venture.
If you’re in Dallas, Denver, Orlando, Tampa, Miami, Dallas, Chicago, Los Angeles, Bay Area, or Phoenix and Las Vegas, check out our list of property management companies. It’s just a start to the process that will help you find the firm with the right skills and services.
Find out more about property management companies at ManageCasa.com.
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