Basics of Property Management: Screening Potential Tenants
Too Busy To Manage? Hire A Property Manager For Your Rental Property
Jesse Obrien
After owning and managing a rental property for years, you may no longer want the responsibilities. Selling the place is an easy solution. But another option to consider is hiring a property management company.
A manager can handle managerial duties, and tax preparation services can handle your taxes, including parts related to the rental. Learning about all the benefits of hiring a property manager can help you decide whether you want to go this route or sell the place after all.
Property Value Appreciation
Whether you maintain ownership or sell the property, you will likely find it appreciating in value. So, as the owner, you can continue to benefit from the increase in value. A possibility is using property management services for several years and then selling the property. This scenario will likely generate more total profit than listing and selling the rental immediately.
Income Generation
You will continue generating income with property management services alongside property value appreciation. You may experience an increase in rental income because you will gain access to a management company's arsenal of knowledge, experience, and tools. Their proven methods can lead to shorter vacancies and lengthier tenancies, increasing income.
Another way that a property manager can increase income is through pricing, repairs, and upgrades. For instance, you can expect them to valuate your rental with exceptional precision to put up a competitive rental rate that is neither over nor underpriced. A bit of extra rent money every month can make a noticeable difference in total profits over multiple years.
Property management can also shine with repairs and upgrades. Most managers can get reduced rates on the work they need because of how much business they provide to carpenters, electricians, plumbers, and other professionals. Your manager can also invest in feature and quality upgrades during vacancies to make your rental more appealing to tenants.
Responsibilities
A major part of being a rental landlord is the marketing process and communicating with tenants after they move in with a lease. These are responsibilities you can rely on a manager to handle. You can often decide how hands-on you want to be. A great example is giving them a certain budget to deal with emergencies and repairs without getting your approval.
When you are too busy to manage your rental property, you may want to hire a property manager instead of selling the place to enjoy all these benefits.
For more information about working with a property management business, contact a local company.
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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.