There are many benefits to property management. You can reduce your stress and burden as a landlord and enjoy the benefits of a professional team at the same time. If you have a small portfolio, property management can be especially beneficial. They can answer tenants’ calls and handle a variety of legal issues while you focus on other aspects of your business. And, while the benefits of property management are many, they’re not the only advantage. Here are a few other advantages of property management.
One of the most important features of property management software is tenant & lease tracking, which organizes key information on tenants. You can automate the leasing process from prospect to move-out. Maintenance management helps you keep the property in tip-top shape and ensure that tenants find it valuable. These systems also allow you to create work orders and assign them to contractors. Finally, accounting and reporting features make it easy to track rent payments, generate reports, and more.
In addition to helping tenants with rent payments, property managers also collect security deposits from tenants and hold them in escrow, which ensures that they’re not co-mingled. These costs are typically between $10 and $25 per hour. A good rule of thumb is to multiply your regular hourly wage by the number of hours per month that you work on your rental property. This will give you an idea of how much opportunity cost you’re likely to incur if you hire property management services.
Besides a professional team, hiring a leasing agent to manage your rental property is another good idea. They’ll advertise your property, handle inquiries from tenants, screen applicants, and select the right candidates. They’ll also conduct a move-in inspection, collect rental income, and handle maintenance issues. They’ll also supply you with financial statements and other documents related to the rental property. The process will be much smoother, and your tenants are more likely to leave good reviews. And if you have a good reputation, they’ll return the favor.
The most common challenge facing property managers is dealing with tenants. While the need for maintenance is not typically expensive or major, it’s still urgent. If you ignore maintenance issues or requests, you’ll lose rent. Therefore, it’s vital to offer fast and reliable customer service to your tenants. The services of a property manager can also save you time and money, and reduce taxes. If you hire a property management company, you’ll get peace of mind, and a well-functioning property.
While hiring a property manager is an excellent decision, it’s important to understand the risks and benefits of hiring a professional to manage your property. As a landlord, you’ll have to be careful when selecting the right tenant for your property. Remember that discrimination is against the law and there are numerous benefits of hiring a property manager. There are two main types of property management companies: those that charge a flat fee for managing a rental property, and those that charge an additional fee to manage the property.