1) Rent Collection
A professional residential property management company (“PM’s”) similar to what you can find at PCF Property Management (https://www.pcfpropertymanagement.com/) have systems and strategies to improve rent collection and on-time rent payments. This allows you to ensure swift and consistent rent collection, which is absolutely critical in this real estate market where good cash flow can mean the difference between success and failure as a real estate investor.
2) Local Knowledge of Rental Rates
PM’s have extensive local knowledge of rents and the ability to determine the highest rental rate possible for your property. With the internet and the ability to do large scale searches for rental properties, potential tenants know if your property is overpriced, even by $25. Overpriced properties sit empty while other properties get rented. Knowledge of rental rates is a key factor in fast rentals and quick cash flow. Rise Property Management in Melbourne are very knowledgeable in this area.
3) Tenant Screening
A PM requires a detailed written application from each adult with photo identification. Additionally, PM’s will run criminal, social security and public notice (bankruptcy or judgments) searches to determine if the application is accurate. PM’s will also call past and present employers, landlords and other references. This is, of course, a lot of work so having something like the services available at ihpropertymanagement.com onside can really help to take the weight off a landlord’s shoulders. PM’s have set requirements and standards for accepting or declining an applicant and thereby ensuring you comply with fair housing rules and other local and state regulations. [pullquote cite=”- S.P., Dayton property owner” align=”right”]”The service we have received from Gary and The Bella Casa Group has been outstanding! We always know they are taking care of our home and we are receiving quality service.”[/pullquote]
4) Marketing Expertise
PM’s have years of experience in how to best market your properties so they are rented in the quickest time possible. PM’s use both offline and online marketing to maximize your properties’ exposure and find qualified tenants quicker. Most PM’s utilize 10, 20 or even 30 different techniques to rent a property quickly which reduces your carrying cost of a vacant property.
5) Property Law and Regulations
PM’s have extensive and up-to-date knowledge of property laws and regulations and will assist you in making sure you are in compliance with your local, state and federal rules and regulations. These rules and regulations include complying with fair housing regulations, the Americans with Disabilities Act and other applicable local, state and federal laws. Avoiding one law suit will more than pay for any PM’s fees many times over.
6) Tested and Reliable Professionals
Property management companies will already have vetted numerous vendors, suppliers and contractors to make sure they provided good quality work at reasonable prices. Failure to properly vet these professionals can be a costly mistake. Many owners overlook this function because they do not know how to do it or because it is a time consuming and laborious process.
7) Inspection Reports
PM’s perform property inspections before, during and after a tenancy. Additionally, most PM’s will perform routine property inspections at least every 180 days. Your PM should be responsible for preparing frequent written inspection reports for each of your properties. Faults in your property that are found quickly can be resolved before they become expensive items of disrepair.
8) Financial Records and Security Deposit Escrows
PM’s will provide detailed income and expenses reports as well as cash statements every month saving you the bookkeeping headache. Additionally, PM’s will also manage your security deposit escrow funds and make sure you are in compliance with local and state regulations. PM’s will provide end-of-year tax reports for your accountant or financial advisor.
9) Emergency Calls and Shield You From Tenants
A residential property management company will shield you from emergency maintenance calls and tenant headaches. Imagine never having to deal with late night “my toilet is overflowing” calls.
10) Low Costs
A PM should only be charging around 6% to 10% of the monthly rent collected. Assuming a monthly rental rate of $1200 per month that is a fee of $72 to $120 per month. This is less than $4 per day! Can you possibly do all these things for less than $4 per day?
11) Free Time
A good residential property management company will free up your time for doing deals that make money.
By Michel Lautensack October 2, 2008
The author has permitted the reprinting and redistribution of this article.[divider] [two_third] [one_third_last][pullquote cite=”- E.R., McMinnville property owner”]”Gary makes being a landlord easy. I will occasionally perform a “drive by” inspection, but otherwise my wife and I are completely removed from the process and in fact I actually forget that I have rental property. We consistently get our checks on time. I am confident that Bella Casa will serve you well.”[/pullquote][/one_third_last]