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Your investment can experience significant increases when you hire a competent property manager. It's for this reason many real estate investors will advise that a good management company are invaluable.
For those who aren't hands-on and would rather not work on maintenance calls, expense management, or collecting rental income, hiring a property management company is ideal. Not only will they handle these details for you but they'll also streamline your business. Here are some key marketing benefits of hiring a property manager.
Benefit #1: Higher Quality Tenants and Screening Process
Property managers with experience view hundreds of applications. They're trained to see red flags. In doing so, they can improve their chances of obtaining higher-quality tenants that are reliable. Ideally, the objective is not to allow bad tenants to pass the screening process. Those moving through the screening process results in reliable tenants who will:
- Pay rents on time.
- Stay in the rentals longer.
- Respect the property units and treat them well.
- Cause fewer problems overall.
Property management companies with experience will use the information from the applications they're viewing to dig out facts. These efforts will help property owners avoid rental scams and other potential lawsuits.
Benefit #2: Reductions in Time Consuming and Costly Legal Problems
It only takes one tenant who is troublesome to cause significant financial or legal issues, and veteran landlords know this. Good property managers have the tools and knowledge regarding tenant-landlord laws. Therefore, property managers are never left vulnerable to potential lawsuits. They'll help landlords with the following legalities:
- Screening tenants
- The conditions of the property including safety
- Evictions and terminating leases
- Lease addendums
- Collecting security deposits
- Monthly rent collection
When landlords can avoid lawsuits, this means they can use those funds for hiring a property management company. In doing so, it will help them save time and headaches.
Benefit #3: Decreases in Tenant Turnover
When landlords use an excellent property management company, these professionals know how to keep renters happy. They are available, responsive, and address problems immediately. When renters are delighted, they're less likely to leave. They're also more likely to accept rent increases so long as they're reasonable.
The same is true regarding vacancies. Property management companies are excellent resources for handling vacant rentals. Not only will they handle the tasks for the property, but they'll ensure they won't stay empty long. Here are some of the jobs a property management company can do:
- Prepare rental units: the company will perform cosmetic improvements to help increase rental revenues.
- Optimize rental rates: when landlords set their rates inappropriately, they're losing renters. If they're too high, the rental may stay vacant for too long. If it's too low, then they could be leaving money on the table. Property management companies know the market and will help landlords determine the right price.
- Effective marketing: writing effective marketing ads is like second nature to property management professionals. They know where to place the ads, negotiate better rates, and how to target the best candidates. They're also familiar with how to field calls and close deals when prospects inquire.
Benefit #4: Renter Retention Rates Increase
When property managers are working for landlords, the turnover rate decreases and retention rates increase. It's easy to understand the detrimental effects landlords experience when losing rental income. However, turnover rates also cause problems with having to change locks, completing thorough cleanings, work on repairs, paint walls, and replace anything that's broken. That's not to mention the marketing, showing, and screening that will have to occur.
Working with a seasoned property management company eliminates those issues. They'll use their marketing and screening skills to ensure tenants are happy and will have lengthy stays. Under most circumstances, property management companies have retention policies in place. These policies typically include clauses like respecting the tenant's privacy and utilizing fair pricing.
Benefit #5: Rental Payment Collections are Efficient
While landlords may have thought their methods for rental income was efficient, they may have had tenants skipping payments from time-to-time. When using a property management company, they’ll find the process is streamlined and has more controls. It’s easy for landlords to become permissive and, as a result, tenants will walk all over them. Property management companies have no problem being the bad cop and collecting these monthly payments.
The property manager will also help landlords work through the eviction process if tenants refuse to cooperate. Strict laws are in place for handling this process. Proceeding without following the steps could cause significant problems. Therefore, it’s critical for landlords to work with the property management company to ensure they’re handling the issues correctly.
Beyond the Increase in the Value of Rental Properties
There are many key marketing benefits of hiring a property manager behind the increase in the value of rental properties. Landlords will experience personal benefits including less stress, more freedom, and more free time. The property manager can handle marketing their rentals to ensure they aren't vacant, experience the best rental prices, and renters remain happy.
At Green River Property Management, we have more than 15 years of experience, helping countless property owners have the best possible experience and get the most from their property. To learn more, check out our guide to hiring a property manager. If you're seeking an experienced and knowledgeable property manager, let's talk.