It’s understandable why so many rental owners ask “Why should I hire a property management company?” After all, the whole point of investing in rental property is to make money. Taking care of the property yourself means not having to pay someone else, and theoretically, that should allow you to end up with extra cash in your pocket.
Unfortunately, that’s not always how it goes when managing rental property. Keeping units occupied, handling maintenance issues, and tracking down rent payments is hard work – and you can actually end up losing money if those things aren’t taken care of promptly. Outsourcing all of those tasks to a property management company can increase your profits because these professionals have the skills, knowledge, and tools to get the job done right.
If you’re ready to see higher profits in the new year, consider these benefits of hiring a property management company.
Advertising open units can get expensive if you’re not reaching your target audience. Property managers know all the right places to announce vacancies so you can get units filled quickly. And plucking the “bad apples” from a pile of rental applications involves a sophisticated screening process.
Property management companies run credit checks, verify employment, contact references, and do all of the other things necessary to
find good tenants who will take care of your property and pay rent on time. This not only saves you time but reduces the chances of having to repair units when destructive tenants move out. It also prevents the long, costly process of
eviction if you end up with a bad renter.
When tenants don’t pay, you don’t get paid. Without a steady cash flow, you can’t pay the mortgage and other bills on time, leading to costly penalties and late fees. While some property owners spend days, weeks, or even months tracking down tenants who are late on their rent, property management companies have time-tested systems and tools in place to help streamline the process of collecting payments. Property management benefits also include raising the rent when necessary, so you don’t have to be the bad guy when the time comes.
Landlords don’t always plan for midnight and early morning calls, but they certainly happen. When a water heater breaks or the furnace stops working, tenants need help right away. Instead of property owners spending gas money driving back and forth from home to fix things, a property management company has someone near the units 24/7 who can get there quickly. They also have access to trusted vendors who offer discounts on appliances, and licensed contractors who provide timely, affordable, and quality work. That can save a lot of money vs. hiring a random contractor in the phone book who may do shoddy work.
And when it comes to outdoor maintenance, it’s difficult to beat property management benefits. If snow isn’t removed from a parking lot and tenants slip, or a light bulb between buildings burns out and a tenant is attacked,
premises liability lawsuits are expensive. Having someone on board full-time who takes care of those things can offer peace of mind and save a lot of potential expenses.
If you’re still asking “Why should I hire a property management company?” this section is reason enough. Managing a rental property requires extensive knowledge about fair housing and anti-discrimination laws, eviction procedures, and issues related to taxes to avoid liability suits. Making mistakes in who you refuse to rent to or following the wrong steps in pursuing an eviction can result in costly legal fees. Even turning away someone with an emotional support animal can land you in legal trouble. On the flip side, if a tenant breaks their lease or damages your property and you don’t have a solid lease agreement, you could be forking out money to cover those losses.
Property management companies stay on top of current laws to ensure rental properties are compliant with local, state, and federal laws to avoid penalties and lawsuits.
Property managers continuously conduct market studies to decide how much tenants are willing to pay for a rental in your area. They can recommend when to raise the rent and suggest upgrades that would make the property more valuable. For instance, if surrounding complexes with higher rates have covered parking and car charging stations, a property manager will crunch the numbers and let you know if adding those amenities could bring you more money, too.
If you’re still wondering why you should hire a property management company, consider the time you will save by handing off those tasks to someone else this year. You can focus on what’s important to you and your family instead of:
Perhaps you’ve been aiming for a promotion at your full-time job, and the distractions of owning rental property have kept that from happening. Or, you missed most of your kids’ sporting events and promised them you’d be there this year. Time is money, and for a
reasonable fee, that’s exactly what a property management company can give you.
If you are a landlord in the St. Louis region ready to increase your profits and have more time in 2024,
Select Leasing & Management can help.
Contact us today to learn how we can give you back your time, save you money, and safeguard your investment.
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12851 Manchester Rd., Ste 110
St. Louis, MO, 63131
