Investing in real estate can be a great way to make your money work for you.
But these investments can take up a lot of your time. The day-to-day work can leave you at risk if you don’t take proper measures to comply with the law.
Common tasks include documenting the condition of your properties, coordinating lease agreements, managing clean-up and preparation for renters, creating financial reports, making inspections and dealing with repairs and maintenance.
Being a property owner isn’t easy.
A property management company will handle all of these chores for you, letting you focus more on your investments and personal business. They can take care of the paperwork and compliance measures while you enjoy the rewards of your investment.
The best property management companies will help you find good tenants. Depending on your contract, the manager could advertise, accept applications and then select the tenant on their own. They could also collect the applications and let you choose the one who is best qualified for the lease.
A major advantage of working with a property management firm is that they usually work with high quality contractors who can do repairs at attractive rates. Home repair professionals might work for discounted rates if they know they will be getting steady work from a company that manages multiple properties.
The services offered can also be tailored to fit your needs as a landlord. You can negotiate with the property management company for specific services, depending on how hands-on you want to be with your investment.
Typically, management companies charge a percentage of the monthly rent as their fee. This percentage can vary dramatically from location to location and even between different companies in the same city. These differences come from market conditions, state laws that make property management more or less complicated, or the level of services performed.
When researching management companies, be certain you know their background. You must also understand what work they will or won’t do for the monthly fee. Inquire about additional charges that may not be covered in their monthly rent percentage.
Get a copy of their contract and understand all the details. Consult an attorney if necessary.
With state laws and local regulations varying dramatically across the nation, you’ll need to find a property manager with plenty of experience in your local market.
Eviction laws are just one example of where experience and knowledge matter most. The rules and procedures for eviction must be followed precisely. Hire a company that knows exactly what to do to evict a tenant in your locale, and you should also ask what fees will be involved if you have to go through that legal process as a landlord.
Evictions aren’t common, but it pays to have a property management company that has experience to handle any issue — no matter how complex or unpleasant — that might arise from leasing your property.