If you rent out a property you may be at the point where sorting out lodgers or even maintaining the place is becoming too much to deal with alongside your busy schedule. This is why property managers can help. Agents can help to significantly add value to your investment, which is why so many real estate investors chose to follow this path. If you’re at this point, here is how they can help to maximise your asset:
Better Quality Tenants
Vetting tenants is often a long and drawn out process. Sieving through the good from bad takes time and if you’re limited by yourself this is where you’ll need help. Having a bad tenant is a highly stressful thing to go through so it’s better to have an air tight screening process to ensure that you get only the most reliable of tenants that pay on time, rent for longer, don’t damage the property and create less issues.
An experienced property management company has seen large amounts of applications and know the warning signs from a mile off. By hiring a management team to take care of this for you, you protect yourself from timewasters, scammers and discrimination lawsuits. By taking on someone that’s knows the market and is experienced in it, they can ensure you get the right people in that will make things a whole lot easier.
Minimise Legality Issues
Experienced landlords know it only takes one troublesome tenant to cause significant legal and financial headaches. A good property manager is armed with the knowledge of the latest landlord-tenant laws and will ensure that you are not leaving yourself vulnerable to a potential law suit. Each state and municipality have their own laws, these plus federal law cover a number of areas including but not limited to:
- Tenant screening
- Safety and property conditions of the property
- Lease addendums
- Terminating leases
- Handling security deposits
- Rent collection
Avoiding a single law suit can more than pay for the commercial property management fees, and spare you time and torment.
Raise Those Retention Rates
Aside the from the obvious effects of lost rent, by having a high tenant turnover rate it has added costs that you don’t usually take into account. The turnover process involves elements such as cleaning, changing the locks, painting the walls, repairs as well as marketing costs, showings, screenings and settling in a new tenant. This again is a highlytime-consuming and expensive process that can often be prevented by getting good quality tenants that stick around.
Having a good property management company that are there constantly for your tenants, keeps them happy and offer a consistent level of support that makes them feel secure. The happier they are, the less likely they are to leave.
Assistance and Reduced Maintenance Costs
Linking in with the above point, keeping tenants happy is key and repairs & maintenance play a big part in this – not to mention it helps preserve the value of your real estate (one of the most important factors). If you enter into an agreement with a commercial property agents you gain access to both their in-house maintenance staff, as well as their insured contractors who have been pre-vetted for quality & price. This can help reduce costs as its easier than hiring independent professionals who will charge more and may be unreliable. Companies can also offer discounts on bulk work and they can handle the arrangements for you – again saving you the hassle.
The Top Line Personal Benefits
- Relieve The Stress – Avoid the headaches of tenants, emergencies, chasing payments, damaged property and paperwork.
- Location Freedom – By having agents, you aren’t tied to the one location, so you can travel or live where you’d like and let the management company take care of the property for you.
- Give Yourself Some Time – Time is invaluable. Whether you need it to focus on your business, your job, your family or yourself, having to maintain an additional property takes up what little time you have. By offloading the main duties to a company, it lets you focus your time on what you enjoy doing!