Trying to decide whether you should work with a property management company or handle the properties on your own? Many investment property owners are unsure which management method would work best for their situation. There are a number of factors landlords need to assess to know which style of management would work best for them, including:
- How many properties are you currently trying to manage?
- Does the property need frequent visits, repairs, or attention?
- How much time do you have to dedicate to those properties?
- Do you have efficient and reliable maintenance resources in place when problems arise?
If you’re unsure about any of these, you should definitely let a property management firm take care of your property.
What is ‘Property Management’?
Property management is the administration of residential, commercial and industrial real estate. It typically involves the managing of property that is owned by another party or entity. The property manager acts on behalf of the owner to preserve the value of the property while generating income. Property managers are paid a fee or a percentage of the rent brought in for the property while under management.
Functions of a Property Management Firm
- Advertising and showing it to prospective renters.
- Managing the tenant application process.
- Ensuring compliance with local law.
- Collecting and accounting for rent.
- Addressing routine maintenance problems.
- Periodically inspecting the property.
- Cleaning and re-keying property.
Benefits of Property Management Services
- Less Problem Tenants
Experienced property management companies see hundreds to thousands of applications. Their trained eyes know what red flags to look out for when overlooking an applicant’s paperwork. Letting them screen tenants is a great way to receive high quality tenants.
- High Quality Relationships
Working with a property management group is an excellent way to ensure all tenant interactions remain professional. Rent collection doesn’t have to be awkward or uncomfortable. Tenants and landlords alike can feel secure knowing that fair and consistent service is being offered across the board to all renters.
- Better Business
Better relationships mean better business. With less to worry about, property owners can pursue other opportunities and sleep easy knowing their investments are protected by a quality management service.
- Less Tenant Turnovers
Tenants who enjoy their stay in their property will want to extend their stay and renew their leases. Good property management companies know how to keep their renters happy. Happy renters are less likely to leave to find a better place to live.
- Lower Stress Level
A positive, stress-free experience is the ultimate benefit of relying on a property management company. By screening tenants, making timely repairs, and resolving all legal matters, a quality property management company will ensure long-term satisfaction for landlords.
The author is an experienced property manager dealing with property management in Kansas City. She shares her expertise on whether one should rent a property management firm.