It's tempting to invest in a rental property in the hopes of making a little cash. After all, some of the world's wealthiest people made their fortunes this way. Worldwide, 256 billionaires earned their fortunes in real estate.
Yet, owning and maintaining an investment property often comes with a lot of unexpected expenses and time-consuming hassle. What's more, sometimes tenants don't pay on time, or you end up with extended vacancies which mean no income.
All the while, you need to pay out money to maintain your building in a marketable shape.
Fortunately, there's a way to avoid and minimize these costly occurrences by appointing a property management company. Right now, you're probably asking, 'Is property management worth it and can a property management company save me money?'.
Let's find out.
1. High-Return Marketing
If you want great tenants to find, visit, and rent your property, you need to let them know about it. Sure a few classified ads and spreading the word via friends and family might help. Yet these traditional methods pale in comparison to the cutting-edge online marketing tactics employed by property management companies.
These professionals know how to get your property in front of the best tenants and draw them in. You’ll benefit from their years of experience, connections, and good reputation in the industry too.
2. Fewer Vacancies
No matter how desirable your rental property is, there’s no guarantee it’ll always attract tenants.
When it stands empty, it costs you money. You still need to pay the mortgage, property taxes, and insurance during this time. You may need to pay to keep the utilities connected too.
Thanks to their ongoing marketing efforts, property management professionals usually have a waiting list of qualified tenants looking for places to rent. If not, they can find them much faster than you could.
Thanks to tried-and-tested systems and processes, property management experts also know how to keep tenants in place and make sure they pay their rent.
3. Better Processes and Systems
Do you know what to do if your tenant defaults on their rent? Have you kept your rent the same for years because you want to avoid conflict with your tenants?
When you hire a property management company, they’ve got these aspects covered.
Their systems, policies, and tools protect landlords from defaulting tenants and unpleasant interactions. Their systems ensure that tenants expect a rental increase every year and they can deal with any fallout tactfully and successfully.
They have procedures in place to ensure your tenants take care of your property effectively and pay their rent on time.
Stringent tenant screening processes protect you from unwittingly placing bad payers in your property.
This includes a criminal background check, a review of their rental history, and verification of employment. These methods protect you from ‘professional’ tenants who occupy properties without paying rent and are difficult to evict due to discrimination changes.
They can pick up on any tell-tale warning signs of trouble ahead long before you could.
Do you remember collecting rent at the same time every month or do you sometimes let it slide? Some tenants will take advantage of this by paying late all the time. Thereby causing you untold worry and stress.
A property manager forms a buffer between you and these undesirable tenants. They’ll make sure you get your money on time every month or chase down the rent if necessary.
4. Fewer Legal Hassles
When dealing with tenants, you’re bound by local, government, and state laws. If you fail to comply with these, you’ll face heavy penalties.
You don’t have time to research all these legal ins-and-outs. Rather leave that to the experts. Property managers know the law inside out and will always follow it to the letter.
They’ll ensure your tenants undergo vetting to avoid any possible perceived violation of the Fair Housing Act if you must evict them.
Court proceedings related to evictions can run into thousands of dollars. A property management agency has in-house legal consultants that can help you avoid unnecessary costs.
At the very least, they can help protect you from a negative outcome in court.
5. Profitable Amenities and Services
Property managers know which amenities and features appeal to each demographic group. Using this knowledge, they can market your property by highlighting nearby facilities that your desired tenants find attractive.
They might also recommend supplementary upgrades to your property that make it more desirable and mean you can charge more rent. Some of these include extra parking, laundry facilities, car charging stations, or package delivery lockers.
These small additions can improve the value of your property and attract better tenants.
6. Lower Maintenance Costs
Thanks to years of experience, property management pros can set up an effective and affordable maintenance program to save you money on avoidable repairs.
They work with teams of reputable contractors. So, you don't have to worry about finding someone to work on your property and vetting them beforehand.
Thanks to their close relationships with these professionals, they can often get your repairs and maintenance done at the best prices too.
A Top Property Management Company Saves You Time
There's nothing worth more than your precious time.
So, if you're still wondering, 'how can a property management company help me?', the answer's a resounding 'yes'. When you hire property professionals to take care of your tenants, maintenance, and marketing, you don't have to do a thing.
You simply pay your monthly management fee, and they'll take care of the rest.
As the most reputable property management company NC has to offer, we can help you get rid of the hassle associated with investment property and embrace the benefits. Get in touch today, and let's get started.