Basics of Property Management: Screening Potential Tenants
Owning Rental Properties: 4 Benefits Of Using Property Management Companies
Jesse Obrien
If you are interested in owning rental properties or if you currently own a few and need help managing time and resources, a property management company can provide a wealth of benefits. A property management's main goal is to oversee all operations of real estate. These responsibilities include tenant screening, maintenance and even litigation with problem tenants. Aside from these benefits, there are a variety of other advantages of hiring a property management company for your rentals.
Quality Tenants
Property management companies are skilled at knowing what to look for in an excellent tenant. When you screen potential applicants properly you end up with an individual who will likely pay rent on time, sign a long lease, take care of your property and cause less problems than tenants who are signed immediately without screening. When analyzing tenants, a property management company knows how to locate facts about the candidates. This alone can put you at less of a risk for rental scams and lawsuits—including evictions, lease terminations and handling security deposits.
Fewer Vacancies
When you are handling your rental properties on your own, you may experience periods of vacancies due to lack of time to find a tenant. When you hire a property management company, your rental is effectively placed on the market at the best rate, which allows you to fill the vacancy quickly.
Happier Tenants
A tenant can quickly become unhappy with you if they request maintenance or experience a problem with the rental. A property management company can get someone out to your tenant quickly regardless of the time. They is extremely helpful if you live in a different area from your rental and it takes hours to get there. Happy tenants translate into fewer turnovers, because your tenants will want to stay where they are happy and feel cared for.
Reduced Stress
If your rental properties are a second income for you and you still have to work at another job, owning rental properties can become extremely stressful when you are trying to manage your time. A property management company will do most of the work for you, so you need only to purchase the property and allow them to do the rest. Not only will this help free up you spare time, it can definitely reduce stress.
Owning rental properties can be extremely rewarding and can reap a wealth of benefits especially when you get older. In order to make your rentals work for you, a property management team can help you run your properties while allowing you to continue working another job or relaxing after work without worry.
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For the last several years, I've used a property management firm to help with my rental properties. One of the tasks that they handle for me is screening applicants who would like to move into one of my vacant units. Their expertise has helped me lower my tenant turnover and find people who want to stay with me for years. Part of the process is a tenant screening credit check. Before any further contact takes place, my manager orders credit reports from at least two agencies. That is enough to tell us if an applicant is a good financial risk. Assuming the references work out, I meet the candidate and make the final decision. If you own rental properties, let me tell you more about the benefits of having a property manager. I'm betting you'll find this type of arrangement will work for you too.