4 Benefits of Hiring A Property Management Company
Are you finding it difficult to keep up with the demands of being a landlord? While Real Estate Investing can be a great source of passive income, the day-to-day operations of a rental can require a time commitment that you might not be up for. This is where a Property Management company can step in to save the day.
Here are 4 benefits of hiring a Property Management Company:
1. They Know What to do in Every Situation
From move-in to move-out, Property Management companies are equipped to handle any situation that could happen with your tenant or rental property. Chances are, they’ve experienced it before! From non-payment of rent to a leaking toilet, they know how to assess and handle every situation.
2. Tenant Screening
Putting bad tenants in your rental property can cause a headache for both you and your Property Manager. This is why Property Managers spend time properly screening tenants before they sign a lease.
Look for a Property Management company that has the following items on their application form:
Employment Reference: An employment reference ensures that the applicant will have an income to pay the rent. This can be verified with paystubs, a recent employment letter or a confirmation call to their Supervisor or HR department. TIP: As a guideline, it is important to ensure the tenant makes at least 3x the monthly rent. So you know they will be able to pay their rent and other living expenses.
Landlord Reference: A landlord reference is incredibly important should not be skipped! It will provide valuable insights into whether the applicant pays their rent on time and takes care of the property. Insights can include cleanliness, lawn care, noise complaints, etc.
Credit Check: A full credit report will show an applicant’s credit accounts, so their potential earnings and debts can be assessed.
3. Save Your Time
Property Management companies handle all the day-to-day operations, including lease paperwork, rent collection and repairs. Imagine getting a phone call from your tenant at midnight because their furnace stopped working in the middle of winter! Not anymore! Most Property Management companies have 24/7 emergency lines, so you can sleep easy, knowing your tenants will be able to reach someone in the case of an emergency.
4. Preventative Maintenance Inspections
Surprisingly, many private landlords opt-out of doing regular inspections. Most Property Management companies conduct annual inspections, so they can provide you with a detailed report about the state of your property. This can be a check-up on your tenants to make sure they are taking care of your property, but it can also be a valuable resource of recommended preventative maintenance. Preventive maintenance can save you money down the road and prevent costly unplanned repairs.
