Are you a landlord who is self-managing your property and dragging your feet when it comes to hiring a property manager? Do you want to experience letting someone else take over the endless tasks associated with managing your rental property?
You may be wondering if hiring a property management company is cost-effective. You're taking a solid step now by researching more information. After all, no one wants to spend money on services they could perform themselves.
This article will outline the numerous benefits of choosing to work with a property management company.
The Perks of Hiring a Property Management Company
Tenant Caliber
Effective property management companies have proven experience. That means when they receive hundreds of rental applications, they'll be able to select the best fit for your rental property.
This level of astute observation comes from dealing with scores of tenants. Experienced property management companies can easily zoom in on red flags.
By looking at credit scores and an applicant's rental history, they can analyze whether a prospective renter is a high quality occupant.
Even if all the details may seem perfect, experienced property managers can tap into their wealth of knowledge. If something appears fishy, they'll verify the information more thoroughly.
A good tenant screening process is one important aspect of what a professional property management company can offer. They'll have high standards and use their resources to ensure you get tenants that are:
- Loyal
- Prompt with rent payments
- Responsible in your units
- Obedient to your policies
Legal Protection
A strong advantage of working with a property manager is the knowledge that you’re operating on the right side of the law. Are you familiar with the Portland area's landlord-tenant laws?
A rental business can be full of legal complications. A tenant complaint can lead to expensive and time-consuming legal troubles. Having a property manager that’s well versed with the law can give you confidence.
Property managers can protect you by following the proper legal procedures. You won't be left on your own, trying to make heads or tails over municipal, statewide, and federal laws concerning:
- Security Deposits
- Safety and Habitability
- Covenant of Quiet Enjoyment
- Evictions
- Breaking of Leases
- The Fair Housing Act
A property management company will also help you draft rock solid leases, and create property listings that are effective.
Reduced Property Vacancies
Because of the experience, professional networks, and resources that effective property management companies have access to, they'll have a better chance of finding the best available local renters.
Because they handle different types of properties, they can conduct cross-referrals. Some property managers even have contracts with other companies. For example, they may partner with a firm who needs accommodations for newly relocated workers.
A landlord acting on their own will have fewer leads compared to property managers. That’s why self-managed rental homes may sit vacant for months.
Good property managers keep the vacancy cycle short by:
- Assigning the optimal rent rate
- Preparing the property for rent
- Performing strategic marketing
Keeps Tenants Loyal
A good property manager will have worked out an excellent system for tenant retention. They'll know the secret to keeping renters happy. They'll also understand the needs of renters. As a result, lease renewals will be frequent and consistent.
Tenant replacement requires plenty of effort. Scouting for prospects, running marketing campaigns, and crafting property listings can take up your precious time and cut into your bottom line.
Property management companies are aware of this. That's why they work doubly hard to keep renters as long-term occupants.
Tenant replacement can be expensive. After all, it involves preparing your property for showings. If turnover happens too frequently, you’ll be spending a lot on cleaning, replacing locks, and attending to little fixes. It makes a lot more sense to retain tenants instead of dealing with turnover.
Excellent Rent Collection Methods
Unlike self-managed landlords, property managers are more efficient when it comes to collecting rent from tenants. On your own, you could be too lenient, especially if you don't have experience in enforcing strict policies.
A tenant can take advantage of an inexperienced landlord and make excuses for late payment. But it’s hard to get away with this behavior with a property manager.
Acting as your professional representative, property managers are superb at handling many different kinds of tenants. They remain firm with rent payment policies.
They'll also know how to deal with those who ignore late rent notices. Having an adept team who can deal with tenant eviction is a major benefit for you.
Aside from collecting the rent efficiently, property managers make it easy for tenants to pay using electronic methods. This cuts off the excuse of not being able to get to the bank before closing time.
Savings on Regular Maintenance Work
Property management companies already have established relationships with contractors and vendors. They'll also already have a prearranged discount service pricing. Hiring a property manager extends this benefit to you.
Some property managers also have their own in-house repair people where quick fixes can be performed. This makes scheduling repair both quicker and cheaper, particularly in emergency situations.
If you self-manage your property you’ll be hiring contractors on a per-need basis, which is more costly. You’ll also be working with different people so the work quality is hit-or-miss.
Sometimes, you’ll end up with an excellent repair job and at other times, you’ll need to hire another repairman. An experienced property management company can conduct renovations and other maintenance work on your behalf, ensuring your peace of mind.
More Freedom for You
One of the top benefits of choosing to hire a property manager is the amount of freedom you gain. You can live anywhere and still acquire monthly returns. You can focus on your career and hobbies, yet still earn a side income. You'll get the profit without the stress.
On your own, you’ll always be working on your tenants' time. If they have emergencies and complaints, you’ll be expected to be available. You won't be able to take time off whenever you like, since your presence will be almost always required.
The Bottom Line
Paying for a property management service may cost you upfront. However, the benefits are remarkable!
If you're looking for exceptional property management services in the Portland area, get in touch with the team at InterWest Properties Inc today.
They have decades of experience providing quality, professional residential investment services to the Portland, OR and Vancouver, WA areas!