Purchasing real estate as an investment can be very lucrative for those that can afford to do it. If it is your first time managing a rental property, you may be in over your head with everything that needs to be done, especially if you are still balancing your day job. Consider the following 3 reasons why you would need to use a property management company.
Help Deal With Tenant Services
Running a rental property is not as simple as collecting rent every single month, as there are many interactions with tenants you need to deal with, many of which you cannot do if you're unavailable between 9-5pm with a day job.
A property management company will help collect rent from tenants, as well as follow up with those that have not paid. They will deal with collecting and returning security deposits, arrange for repairs to be done, and respond to any complaints. They can even handle the eviction process if necessary.
Bring Previous Experience Of Managing Properties
As a new landlord, you may not be aware of what you should be doing to properly manage your property. For example, you can find tenants, but how do you know you are finding good tenants? A property management company can help with tenant screening to fill any vacancies you have. They will also do all the leg work of checking their references, running background checks, and performing credit checks.
While these are not things that are necessary to run a building, they help take the management up a notch to give you an advantage.
Help Maintain The Building
There are a lot of day-to-day operations that need to be done to successfully run an investment property. One of those things is simply taking care of the building-- cleaning indoor common areas, shoveling the sidewalks in the winter, and cutting the grass in the summer.
When things do break, the management company can handle the entire repair process as well. They can use their previous experience to hire a qualified professional to do the repair, saving you time from having to call multiple people for price quotes on your own. Many property management companies have a handyman that works for them, and they can do many repairs without outsourcing the labor.
Running an investment property for the first time can be tough, but using a property management property will help assist with all the difficult tasks.Share