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The Top 10 Reasons to Hire a Residential Property Management Company
Once you have invested in a rental property, the responsibility of maintaining
and running the property can quickly become overwhelming.
For many Owners, the logical solution is to hire a Residential Property
Management company to oversee their rental property.
But is this
the right decision for you?
Here are the top 10 reasons to consider why you should hire a residential
property management company and
how the benefits far outweigh the costs.
1.
Rent Collection:
A professional residential property management company (“PM’s”) have systems and
strategies to improve
rent collection and on-time rent payments. This
allows you to ensure swift and consistent rent collection. 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.
2.
Local Knowledge of Rental Rates:
PM’s have extensive local knowledge of rents and the ability to determine the
highest rental
rate possible for your property. With the internet and the
ability to do large scale searches for rental properties, potential tenants
know
if your property is overpriced, even by $25. Overpriced properties sit
empty while other properties get rented. Knowledge
of rental rates is a
key factor to fast rentals and quick cash flow.
3.
Tenant Screening:
A PM requires a detailed written application from each adult with photo
identification. Additionally, PM’s will run
criminal, social security and
public notice (bankruptcy or judgments) searches to determine if the application
is accurate. PM’s will also
call past and present employers, landlords and
other references. PM’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.
4.
Marketing Expertise:
PM’s have years of experience in how to best market your properties so they are
rented in the quickest time possible.
PM’s use both offline and online
marketing to maximize your properties’ exposure and find qualified tenants
quicker. Most PM’s utilizes 10,
20 or even 30 different techniques to rent
a property quickly which reduces your carrying cost of a vacant property.
5.
Property Law and Regulations:
PM’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. These rules and regulations include
complying with
fair housing regulations, the Americans with Disabilities Act and
other applicable local, state and federal laws. Avoiding one law suit will more
than pay for any PM’s fees many times over.
6.
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. Many Owners overlook this function because they do not know how
to do it or because it is a time consuming and laborious process.
7.
Inspection Reports:
PM’s perform property inspections before, during and after a tenancy.
Additionally, most PM’s will perform routine
property inspections at least
every 180 days. Your PM should be responsible for preparing frequent
written inspection reports for each of your properties.
Faults in your property
that are found quickly can be resolved before they become expensive items of
disrepair.
8.
Financial Records and Security Deposit Escrows:
PM’s will provide detailed income and expenses reports as well as cash
statements every
month saving you the bookkeeping headache. Additionally,
PM’s will also manage your security deposit escrow funds and make sure you are
in
compliance with local and state regulations. PM’s will provide
end-of-year tax reports for your accountant or financial advisor.
9.
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.
10.
Low Costs:
A PM should only be charging 10% of the monthly rent collected. Assuming a
monthly rental rate of $1000 per month that is a fee of
$100 per month.
This is less than $4 per day! Can you possible 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 doing
deals that make money.
I mean serious money as opposed to dealing with
non-money producing activities like tenant and property management.
I have sold and currently manage property in and around your area. You
can visit me on the web at www.teamathey.com
click on leasing at the top
and see all the services that we provide. I am a
real estate broker that has been in this business for 22 years. Two time NARPM
(Nat'l Assn. Of Residential
Property Managers) President of the Dallas
Chapter. We currently manage about 200 properties so we are still able to
provide a personal touch with the outstanding professionalism. Our goal is to
maintain a long term relationship with our Owners, protect the equity in their
property, and save them money.
Suzanne Athey, CRS, GRI, RPM
Real Estate Broker, Professional Property Manager
Re/Max HiNet and ReMarkable Property Management
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