First-time real estate investors will be faced with making a number of key decisions initially, one of which is whether or not they should hire a property management firm to handle the everyday affairs of their rental homes. The right company will provide an extensive list of services and perform a broad range of tasks that many investors want nothing to do with. Not only do they serve as a buffer between you and your tenants, but the following is a list of reasons to consider hiring them.
- Property management companies help you avoid costly legal issues.
If there is one thing that property management companies are well-versed at, it’s ensuring that you are compliant with all Federal Housing Laws and tenant’s rights. The last thing you need is a long, drawn-out legal battle and the many expenses that go with it. For example, if a tenant is not paying their rent, they will pursue the eviction for you and see to it that a judgment for back payment is rendered against them.
- The right property management company will contract out to maintenance staff or have one in-house.
Rental properties require a considerable amount of maintenance. The older a house gets, the more that needs to be maintained or repaired. Unless you are paying for a maintenance contractor separately, these fees are usually included in the services a property management company provides. The benefit to this is the same as the issue with emergency calls in the middle of the night (see below). Simply put, you won’t be the one getting that phone call in the middle of the night.
- You won’t have to worry about responding to emergency calls in the middle of the night.
Property management companies eliminate the need to provide tenants with your name, address, and phone number which means you won’t have to worry about a tenant calling in the middle of the night whenever there is an emergency. When you have multiple units to manage, you’ll be thankful that you’ve hired a management team to handle these emergencies for you. Your privacy will always be respected when you partner with a property management company.
- Additional responsibilities including advertising, clean-ups, and more.
Property management companies are skilled at finding better quality tenants for your rental real estate. They target their advertising to attract the right tenants. All applicants are then subject to a rigorous screening process that includes an extensive background and criminal check as well as credit scores, employer verification, income verification, past rental history, and payment history.
These are just a few of the benefits that real estate investors can enjoy when they hire a professional property management company. However, it is important to clarify that the company that is selected is licensed, insured and bonded.