If you’ve ever considered buying or owning rental property, you need to be fully aware of the challenges associated with being a landlord. Rental property is one of the best ways to build wealth in America when your real estate is managed properly. Failure to plan and manage it well can turn a great investment into a money pit. Before investing you might want to ask yourself, what do property management companies do?
If you are already a do-it-yourself landlord, you probably have a good idea of what’s involved. Most do-it-yourself (DIY) landlords think that professional property management is a luxury they cannot afford. However, nothing could be further from the truth. The most costly mistakes are made by DIY landlords who are trying to save money. Using a professional property management company that has proactive management systems in place to protect your property will actually maximize rental income for large investors and accidental landlords. Below is a list of some of the services offered:
- Comprehensive Property Analysis – Most professional property managers offer a comprehensive property analysis to set the best possible rental price. This is accomplished by comparing market data and rental prices with other comparable homes in the area. Most professional property managers have access to many tools for them to access the data.
- Get Property Rent-Ready – Making sure the property is rent ready before it is placed on the market for rent is an important step. It may involve cleaning or repairs. This service is usually included as part of the management fee and should be provided between each new tenant placement.
- Photos and Video Tours – Photos and video tours should be taken before and after move-out. This is an important step because it validates the condition of the property in the event of damage by the tenant. They are also used to help advertise the property.
- Marketing & Advertising of Rental Property – Since most people search online for the perfect property before doing an actual walk-through showing, syndicated online advertising is important to get maximum exposure of your property. Professional management companies are usually able to attract a much larger pool of qualified renters who are able to meet the terms of the lease agreement. Keyrenter Property Management’s convenient integrated website allows potential tenants the ability to do almost everything online to decrease vacancy time.
Tenant screening for qualified tenants who are able to meet the terms of the lease agreement. This step can make the difference between a successful and profitable rental property, or a stressful and frustrating investment. Every adult tenant who will occupy the property should consent to a credit and criminal background check. Good tenants are key to a successful rental outcome. Statistically, less than 1% of Keyrenter lease agreements end in eviction. Keyrenter Elite uses a 14-point tenant screening process to help identify great tenants who are able to meet the terms of the lease agreement. Keyrenter follows all Federal and local fair housing guidelines and requirements.
Move-In & Move-Out Inspections
Before each tenant moves in or out, an on-site walk-through inspection must be completed. A comprehensive checklist with video or photographs are included. This is important to document the condition of the property when the security deposit disposition is settled.
The use of a lease agreement that has been tried and tested in a court of law by a qualified attorney is essential to protect your property assets. A good lease agreement will hold tenants legally responsible if they damage the property or violate the terms of the contract.
Maintenance & Repairs
Coordination of maintenance and repairs using proactive management processes can save property owners thousands. Small things like changing furnace filters, inspecting for pests, winterizing sprinkler systems, can increase the life of appliances and help avoid unnecessary expenses.
Professional property management companies have systems in place to deal with difficult tenant issues 24/7. This includes after-hour emergencies that impact renter safety or result in property damage. A trained professional is available to take those holiday and 3 am emergency maintenance calls. They are trained to determine whether or not the situation warrants the dispatch of a pre-approved licensed vendor.
How Much Does Residential Property Manage Cost?
Most property management companies charge a small percentage of the monthly rental amount collected. They collect the rent, deduct the fee, and then pay the property owner. This creates an incentive for them to locate and place a quality tenant on your property. There may also be a tenant placement fee.
What to Look For in a Property Management Company
It’s always a good idea to let the property manager’s reputation speak for itself. Check them out by looking at online reviews from owner clients who are happy with their services. When reading reviews, remember to keep in mind who the author is. Tenant reviews can sometimes appear negative but they can actually be a testament to the service provided to their own clients. Sometimes renters who leave the property unclean and don’t get back their entire security deposit, are angry and disgruntled enough to write scathing reviews. Tenant reviews can sometimes appear negative but they can actually be a testament to the service provided to their own clients.Ask them what their eviction and vacancy rates. You want someone who can keep your property rented.
Hiring a professional management company can not only improve your bottom line. It can relieve the stress, time, and effort associated with owning rental property.