Rent Collection: Professional residential property management companies have systems and strategies to improve rent collection and on-time rent payments. This quick and consistent rent collection is absolutely critical in this real estate market where good cash flow can mean the difference between success and failure as a real estate investor.
Local Knowledge of Rental Rates: Property Managers have extensive local knowledge of rents and the ability to determine the highest rental rate possible for your property. Knowledge of rental rates is a key factor to fast rentals and quick cash flow.
Tenant Screening: A Property Managers use a detailed application from each adult with photo identification, run criminal and credit checks, verify income, and call past landlords. Property Manager’s have set requirements and standards for accepting or declining an applicant and thereby ensuring you comply with fair housing rules and other local and state regulations.
Marketing Expertise: Property Manager’s have experience in how to best market your properties so they are rented in the quickest time possible.
Property Law and Regulations: Property Manager’s have extensive and up-to-date knowledge of property laws and regulations and will assist you in making sure you are in compliance with your local, state and federal rules and regulations. Avoiding one law suit will more than pay for any management fees many times over.
Tested and Reliable Professionals: Residential property management companies will already have vetted numerous vendors, suppliers and contractors to make sure they provided good quality work at reasonable prices. Failure to properly vet these professionals can be a costly mistake.
Inspection Reports: Property Manager’s perform property inspections before, during and after a tenancy. Additionally, most Property Manager’s will perform routine property inspections annually. Faults in your property that are found quickly can be resolved before they become expensive items of disrepair.
Financial Records and Security Deposit Escrows: Property Manager’s will provide detailed income and expense reports saving you the bookkeeping headache. Property Manager’s will provide end-of-year tax reports for your accountant or financial advisor.
Emergency Calls and Shield You From Tenants: A residential property management company will shield you from emergency maintenance calls and tenant headaches. Imagine never having to deal with late night “my toilet is overflowing” call.
Low Costs: A PM should only be charging around 8% to 10% of the monthly rent collected. Assuming a monthly rental rate of $1200 per month that is a fee of $96 to $120 per month, this is less than $4 per day! Can you possibly do all these things for less than $4 per day?
Bonus Reason! FREE TIME: A good residential property management company will free up your time for you to do the things you truly enjoy!