Property management companies can save the owner a lot of headaches and even improve the income of that property. If you’re scratching your head wondering how in the world you can make more money by hiring someone to do what you could do for free, think again. The average property management service does much more than collect your rent.
Customize your Plan
Property management services offer as much or as little service as you like. If you just need someone to collect rent, you can. But did you know that they can also handle evictions and approving new tenants? How much time do you spend just on these two things when you could be turning your attention to other investments?
Whether you need management services for condos, co-ops, 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 absentee landlord with complete peace of mind as your 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 your property taxes, pay your mortgage payments, and prepare your annual budget, as well as provide you with reports at agreed-upon intervals.
Some management companies will screen prospective tenants for you, checking their credit and references so you can be sure you have the most reliable and stable tenants or tenants, and weeding out prospects who could cost you money rather than be an asset to your property. . . They will handle resident maintenance requests, as well as maintain your grounds, units, and equipment. A property management service can deal with bad debt, manage your employees, and even provide security for your residents and property.
Rates are flexible
Of course, these services have a cost and, like anything else, it is better to look for the best price and the best quality of service. Property management services vary in their rates; some have a fixed charge per unit, while others charge a percentage of the rent. There may be a separate basic administration fee based on the rental income of the property.
Some will substantially reduce your rate on a unit when it is vacant; you can be sure that they will work to get a reliable tenant in that unit as soon as possible, which will benefit you and their financial health! Weighing those fees against the demands on your own time and the expenses of your employees will show you whether or not a property management service would be the right step to take.
Choose your management service wisely
Always thoroughly research a possible service. The best ones 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 managers of income-generating properties. Services that have membership in one or both of these entities are held to high standards of professionalism and ethics. A good management company will encourage you to talk to others who employ their services and provide you with up-to-date references.