However, it can also become a full-time job if you try to tackle all of the day-to-day tasks of being a landlord yourself. That’s why many landlords choose to work with a property management company.
But what does a property management company do, exactly?
Keep reading to learn more about how a property manager can make your life as a landlord much easier.
Determine Rent Price
Determining the optimal rent price is key to getting the best return on your investment. If you price your rental unit too low, you may be selling yourself short. If it’s too high, you might not land any tenants or you’ll have long periods of vacancy, which will cost you in the end.
You might think determining the rent price is as simple as looking at nearby homes and what they charge for rent, but it’s not. There are many factors that can affect a home’s rent value, making properties in the same neighborhood vary in price.
Property management companies have a deep understanding of the local real estate market and what potential tenants are looking for in rental units. This allows them to accurately determine the rent price so you can get the biggest ROI.
Market Your Property
So, you have a beautiful property and the rent has been set. Now, how will you attract quality tenants to apply?
Marketing your house or unit is essential in filling vacancies quickly. Without marketing, people who might be otherwise interested in renting your property won’t even know it exists.
A property management company will take professional photos of your property and market it on popular rental sites to attract potential tenants.
Getting people to apply to rent your unit is only the first step. The last thing you want is to rent your unit to people who won’t pay rent or will completely trash your property.
That’s why tenants need to be screened by having background checks completed along with credit checks. By screening tenants, property managers can find the best applicants who will pay their rent on time and treat the property with care.
Finding reliable and responsible tenants can save you a ton of money down the line, so this step of the process should never be taken lightly.
Handle repairs and Maintenance
Taking care of repairs and daily maintenance might be the most time-consuming part of being a landlord. Every property will have its issues, some more than others, leading tenants to call and request repairs. Without a property management company, you’ll have to deal with all of these repairs on your own.
That means you’ll either fix them yourself or spend money on hiring a professional. Both options take up your valuable time and money.
But if you’re working with a property management company, the tenants will call them directly to report any issues in the home. They have local professionals on-call to do the repairs right away.
If you own multiple rental properties, collecting rent each month can become quite a headache. You have to worry about each tenant submitting rent on time and if they don’t, you have to reach out to them and request it.
This is something you probably don’t want to think about each and every month, which is why a property management company will do it for you.
Deal with Any Tenant Issues
Property managers deal with any tenant issues including late rent or destruction of property. They will issue eviction notices and, if need be, take legal action.
If a tenant needs to be evicted, it’ll fall on the property management company to quickly fill that vacancy with new tenants.
Regular Home Visits
It’s important to keep tabs on your rental units by performing seasonal home visits. But if you live far from your properties, this would be very difficult to do.
That’s why a property management company will do it for you.
They will visit your properties and check to make sure the air filters are being changed, the HVAC system is working well, the appliances are in good shape, and the smoke and carbon monoxide detectors are working properly.
They’ll also make sure the tenants are treating the property with care.
Allows You to Invest From Afar
If you want to invest in a property that is out of your city or state, a property management company is essential. While some of the tasks can be done from afar, things like maintenance and home visits require feet on the ground.
By using a property management company to handle the day-to-day, in-person tasks, you can earn a passive income off of your property from afar, allowing you to invest wherever you want to.
So, What Does a Property Management Company Do?
A property manager’s goal is to make your life easier when it comes to your investment properties. They allow you to invest in real estate without being hands-on with the day-to-day tasks of owning a rental property.
When asking the question “what does a property management company do”, the answer can vary depending on who you’re working with, but the above tasks are typically done by a property manager.