The Advantages of Property Management Companies
Property management companies can save a homeowner a lot of headaches and even improve the income from that property. If you’re scratching your head wondering how the hell you can make more money by hiring someone to do what you could do for free, think again. The average property management service does a lot more than just collect your rents.
Customize your plan
Property management services offer as much or as little service as you want. If you just need someone to collect rents, they can. But did you know that they can also take care of evictions and approval of new tenants? How much time do you spend on just these two things when you could turn your attention to other investments?
Whether you need management services for condos, cooperatives, apartments, or even individual homes, a property management service can save you a lot of time, trouble, and yes, even money. If you choose a full service package, you can be an absent owner with complete peace of mind, as their management service collects your rents, maintains the property, handles emergencies of all kinds, and generally manages your property as if it were their own. They’ll even pay property taxes, pay mortgage payments, and prepare your annual budget, plus provide you with reports at agreed-upon intervals.
Some management companies will screen your prospective tenants for you, checking your credit and references so you can be sure you have the most reliable and stable tenants or landlords and ruling out prospective tenants who could cost you money rather than being an asset. for your property. . They will handle residents’ maintenance requests, as well as maintain their grounds, units, and equipment. A property management service can deal with bad debts, manage your employees, and even provide security for your residents and their property.
Rates are flexible
Of course, these services come at a cost, and like anything else, it’s best to look for the best price and quality of service. Property management services vary in their rates; some have a fixed charge per unit, while others take a percentage of the rent. There may be a separate basic management fee based on the rental income of the property.
Some will substantially reduce the rate of a unit when it is unoccupied; You can be sure that they will work towards finding a reliable tenant in that unit as soon as possible, benefiting your financial health and theirs! Weighing those fees against the demands on your own time and the expenses of your employees will show you whether a property management service would be the right step to take.
Choose your management service wisely
Always research a potential service thoroughly. The best are members of the Accredited Management Organization (AMO), a centralized database of certified property managers, or the Institute of Real Estate Management (IREM), a professional organization for income-generating property managers. Services that have membership in one or both entities are subject to high standards of professionalism and ethics. A good management company will encourage you to talk to other people who employ their services and provide you with up-to-date references.