For first-time and even experienced real estate investors, the the day to day challenges of managing a property can be daunting.  Making inspections, finding tenants, tending to repairs or upgrades, and collecting rent are just some of the processes that can be burdensome and, at times, intensely stressful.  Failure or compromise in any of these can result in significantly lower returns as well as a diminishing in the value of the property.

So, what is the best way to circumnavigate these potential issues?  Hire a professional property management company.  Any successful real estate investor will attest that their property manager is the most crucial resource in keeping their investment safe and profitable.  Here are some of the ways that a property management company can reduce stress, increase returns, and ultimately, make the experience of investing in real estate far more enjoyable.

 

Marketing the Property

Property management companies understand how to price and create the most effective advertisements for a property.  These are placed in the publications/websites with the broadest reach and most effective conversions. Ultimately, the owner is left with the largest pool of potential tenants in the shortest amount of time– and no stress. Property managers have streamlined saving significant time and money for the owner in the long run.

 

Finding Reliable Tenants

When searching for tenants, it is vital to find individuals that will treat the property with respect.  The ideal tenant will pay rent on time, rent for longer, and cause no damage to the property.  For the average real estate investor, it can be very difficult to weed out potentially bad tenants during the screening process.  Using a property management company can reduce the likelihood of renting to unreliable tenants.  Property managers have seen thousands of housing applications.  They know where to look for the key information that raises red flags.  Furthermore, in hiring a property manager, a real estate investor avoids rental scams directed at landlords, as well as discrimination lawsuits.

 

Achieving a Lower Tenant Turnover Rate

A high turnover tenant rate is the last thing an owner wants for the long term health of their real estate investment.  When tenants are moving in and out frequently, the owner is forced to spend time and money to prepare the property for potential renters.  This process includes a careful cleaning, various small or large repairs, painting walls, changing locks etc.  More time and money is then spent on advertising, showing, and screening the property to potential tenants.  A solid property management company will have a tested, reliable tenant retention policy to ensure that renters will be satisfied with the property and therefore, rent for longer.

 

More Effective Rent Collection Process

Property management companies fully understand that only way an owner will see increased returns is if rent is paid on time and in full every month.  Without a property manager, landlords can be taken advantage of.  A good property manager will ensure that all tenants realize that rent collection is a non-negotiable process.  With a property manager, an owner never has to hear excuses or chase down rent.  In terms of eviction, property managers are extremely well versed in the the strict– and often confusing– eviction laws that vary by state.  If an owner incorrectly performs an eviction by themselves, they could be facing a lengthy and expensive lawsuit.

 

Conclusion

Property management companies reduce stress and increase profit, simple as that.  For owners, the peace of mind achieved through not having to deal with day to day issues is invaluable.  With more time comes more freedom to explore other real estate investments and expand portfolios.