PROPERTY MANAGEMENT
Benefits of using a property management company
By Turnie Morolong
Owning investment property, especially
if it is multiple properties with a wide
geographic spread, can be very
cumbersome. In such a situation, hiring
a professional property manager to
take care of the properties becomes
the only logical thing to do. Whilst
it is true that professional property
management is another expense
to your business, the advantages
it offers can certainly outweigh the
disadvantages.
What are some of the important advantages of hiring a professional
property manager to manage your investment properties?
Ensuring rent is paid on time
Since property managers deduct their fees from the monthly rent received,
they are motivated to keep those payments flowing in. Timely rental
collection is the only way for an investment property owner to generate
reliable income. Consistent rent collection is key to receiving rent payments
on time. A property manager will enforce the provisions of the lease if
rentals are not received. If a tenant consistently fails to pay rent on time (or
at all), the property manager will know the proper steps to take to deal
with the situation, including if necessary issuing an eviction notice.
Screening of tenants
Property managers handle all the tenant screening activities with a view
to getting tenants that pay on time and who are most likely to take better
care of the property. Some investment property owners do not run credit
and/or background checks on prospective tenants either because they
do not have the time or do not know where to get reports. Renting to
people without regard for their credit or background checks is one sure
way to end up with problem tenants.
Decreasing tenant turnover
A good property manager knows how to keep tenants happy; he or she
is responsive, available and takes care of the problems as they arise.
Happy tenants are less likely to look for another place to live. Vacancies
cost the landlord money.
Shortening of vacancy cycles
Vacancies cost money. Without a property manager, it may take a
landlord several months to prepare a property for rent, determine how
much rent to charge and market the property to potential tenants. Property
managers can reduce the amount of time it takes to perform these tasks.
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Acting as the point of contact for tenant concerns
If something breaks in a property, it is not always convenient or possible
for an investment property owner to drive over to the property to inspect
it himself, especially if it is in another town. A property manager can
address problems at all hours of the day and arrange for a service
provider to repair or replace the item.
Handling of legal aspects of leasing
A property manager handles all legal aspects of dealing with tenants
and maintaining the property. A property manager handles evictions,
property inspections, lease negotiations and terminations. A property
manager ensures that each property is in compliance with all property
bye-laws, which may vary by municipality. These services can help an
investment property owner avoid costly lawsuits and legal problems.
Investing in property can build long-term wealth. But the day to day
management isn’t for everyone. If someone else is handling the day to day
management of your investment property, you will have fewer complications
and commitments to worry about. If more time and less stress are key to your
quality of life, a property manager can be a great asset.
Many of the benefits of using the services of a property manager are related
directly to saving money. However, there are several personal benefits,
the most important being that it allows investment property owners greater
freedom. Instead of being attached to one property, an investment property
owner can buy multiple properties in different locations and let a property
manager take care of each one. Owning an investment property can be a
rewarding experience as it often generates a steady income. However, an
investment property only generates income if it is managed well.