As a property owner, you must manage everything from advertising vacancies to screening tenants, handling maintenance requests, collecting rent, and more. Since these tasks consume all your energy and time, it can become an “8hr full-time job”. That’s why you should hire a property management company!
Professional property management companies care for your rental property, from finding new tenants to maintaining and managing your finances.
Moreover, the benefits of hiring a property management company are countless; let’s overview the top 10 benefits in this blog.
What does a property management company do?
A property management company is responsible for overseeing a rental property on behalf of the landlord, i.e., you!
These property management companies take 100% responsibility for–
- Scheduling and executing routine property maintenance
- Fulfilling legal requirements, i.e., creating/executing leases
- Dealing with tenant-related issues
- Keeping budget
- Property Marketing
- Collecting rent
- Vetting potential tenants
- Handling emergencies
Best put–a property management company can manage your property from day-to-day operations to other complex tenant issues to ensure you get the best profits out of your property.
The importance of effective property management
If you own multiple properties, then you are bound to face these property risks –
- Vacant or no tenant
- Maintenance and repair
- Frauds and scams
As a property owner, your aim should be to–Lower the overall risk of a property to KEEP reliable tenants.
So, if you are not keeping up with managing the property, then it can kill your cash flow. How?–Tenant turnover!
Happy tenants stay longer at a property and recommend the property to others. So, managing the property effectively and maintaining reliable tenants is important. These efforts can lead to lowering tenant turnover and maximizing your profitability.
10 benefits of hiring a professional property management service
A productive property management company will always try to maximize your return on investment with proactive methods.
Here are the 10 benefits of hiring a professional property management company–
1. Time and inconvenience
Managing a property takes time, energy, and effort. A professional property management service lets you do what you enjoy while experts care for your property. You won’t need to deal with tenant complaints, maintenance requests, or legal issues alone; instead, you can rely on the property management team to handle everything.
2. Tenant management
A good tenant can make all the difference in your rental property’s success. Professional property managers have refined screening procedures to ensure quality tenants are selected. They also know how to handle tenant conflicts, complaints, and evictions.
3. Consistent rent collection
If you have rental property, your investment success gets calculated by the consistent payments you get from your tenants. Professional property managers can effectively handle rent collection and fair rent charges (as per market rate) and also help increase your rental income.
4. Property maintenance
Your property needs daily maintenance, such as leaks, fixtures, etc. So with property managers, you can stay tension free about these kinds of work. Usually, property managers have their networks of trusted contractors to maintain your property timely.
5. Financial management
A property manager can also manage bookkeeping and accounting tasks efficiently. They will also record incomes and expenses in monthly or yearly financial statements and accurately report them to you.
6. Legal compliance
Property owners must know various rental property regulations. An expert property management team will meet all legal requirements, protecting you from costly fines and legal complications.
7. Professional Marketing
Property managers know how to properly market your property so that it’s attractive to tenants. They use professional photography, carefully crafted descriptions, and targeted advertising to attract quality renters.
8. Rental pricing and accurate and up-to-date
Setting rental prices can be challenging. If the rent is set too high, it may be difficult to find tenants, and you will lose out on potential profits if the rent is too low. A good property management team will use advanced strategies to determine rental prices that are both fair and profitable.
9. Higher occupancy rates
Property managers have a large pool of quality tenants actively looking for properties like yours. So they can help to fill the vacant units of your property faster.
10. Vacancy Management
If a tenant moves out, finding a replacement is essential as quickly as possible to avoid losing rental income. Professional property managers will handle the marketing of vacant units, the screening of tenants, and the move-in process for new tenants, minimizing any downtime between occupants.
Cons of hiring a property management service
With hiring property management services, there are 2 downsides we can think of–
1. Additional Cost or High Fees
A property management service charges you at a percentage base. A percentage of the monthly rent you receive from a tenant gets spent on property management costs. Typically this percentage accounts for 6% to 10%.
Here is the cost of hiring Melrose Realty as your full-service property manager–
- 1 to 9 properties – 10% management fee
- 10 to 19 properties – 9% management fee
- 20 to 29 properties – 8% management fee
- 30 to 39 properties – 7% management fee
- 40 to 100 properties – 6% management fee
The more property you ask a property management company to manage, the lesser percentage they charge.
Note: Before hiring a management company, ensure it’s within your price range.
2. Poor property management can dry your cash flow
Poor management can also cause your cash flow to dry up due to cue tenant turnover. If you hire somebody with lesser experience and credibility, then it can cause more tenant turnover. This turnover can cost you much money with almost no return on your property investment.
Note: Find a reputable property manager to manage your property effectively.
Is hiring property management worth it?
Overall hiring a property management service is worth it.
The value of a solid tenant compared to a bad tenant that a property management company brings is 100% worth it. It can give you impressive ROI on your property portfolio.
If you’re new to owning properties, then you have to have knowledge and capability of dealing with issues associated with managing rental property.
For instance, if you get $1000 rent from your 3 properties, you must pay approx. $300 to your property manager. Just by paying a 10% fee, your manager can screen and manage good tenants and retain them.
Hence, you can save/make thousands of dollars!
And with their knowledge of other regulatory rules and guidelines, these property management firms can shield your investment from legal risks.
Consult Property Management Experts at Melrose Realty in Oklahoma
If you are unsure whether to hire a property management company, book a consultation with Melrose Realty for our expert property management services in Oklahoma. We will provide a walkthrough of the possible benefits and how our services fit you! Melrose Realty provides its service in Edmond, OKC, and Deer Creek, with expertise ranging from rental and commercial property to residential property management.
What is the most crucial component of real estate ownership?–Effective property management!
Hence, don’t let a tenant turnover cost you unnecessary money and headache. Just hire a professional property management company to be a landlord for you and save you money, time, and effort.