Opting to involve a property management company in your rental property business is a big decision. While some investors insist on going it alone, others would not even contemplate it without having a property rental company’s assistance.
First-time investors might not know exactly what a property management company does or how to tell if it is doing the job well. Here are some indicators that demonstrate you made a sound decision by hiring property managers:
Rental income
According to Evernest, a Denver rental agency, one of a property management agent’s most important tasks is to ensure that tenants pay their rent in full and on time. Despite debit orders and electronic payment technology, it is surprising to see how some tenants continually duck and dive their landlords when the rent is due. Finding time in your busy schedule to deal with such problems is challenging if you have other work commitments, live out of town, or own multiple properties.
A rental property management company dedicates itself to reeling in the rent, even from those tenants who need more than one reminder that it is due. If your rental income flows into your account each month without delays or hiccups, your property managers are doing their jobs.
Tenant vetting
Reliable tenants who pay on time and in full are not that hard to find. However, ensuring that you get them means following stringent vetting processes like those at Cushman and Wakefield and JLL. Managing this procedure alone can be time-consuming. As a busy landlord, you might not have time for this vital but arduous task. However, failing to complete it could land you with delinquent tenants.
Property management companies have vetting processes to ensure that potential tenants are employed, earn enough money to afford the rent, and have a stable credit history. If this is done correctly, you should not have any tenants who default on the rent or pay it late. Local property management companies Pioneer Property Management and Keyrenter Property Management Denver have the vetting process down to a fine art and will recommend tenants you can rely on.
Property maintenance
Like any asset, a property requires maintenance to keep it in pristine condition. Additionally, things go wrong in a home without any warning, such as blocked drainage pipes and water damage. The worst part is that such emergencies tend to happen at odd hours, and landlords find having to deal with these matters a disruptive inconvenience.
If your property management company responds to tenants’ calls about problems with the house and does preventative maintenance, your rental home will always be in good condition. And you will not face massive bills for fixing major issues that should have been dealt with when they were minor ones.
Property managers develop close connections with a network of trusted Denver contractors who perform repairs and maintenance. Therefore, you do not need to worry about the job not being done properly.
Dealing with lease breachers
Unfortunately, despite everyone’s best efforts, there will always be that one tenant who does not stick to the terms of their rental agreement. Either they repeatedly fail to pay their rent, are placing your property in danger through reckless behavior, or have become involved in a criminal matter with the Denver police centered around the property. For example, renters may be using your property to sell drugs.
These matters might require immediate termination of the lease and eviction procedures. Sometimes, these matters wind up in court, taking up a landlord’s time and money to pay attorneys.
Property managers have the skills to bring the situation to an end without involving the courts due to their extensive experience. When circumstances like this arise, your property management company should rise to the occasion by dealing with them effectively and professionally.
Bookkeeping
Tracking expenses, drawing up invoices, and balancing the books is something most landlords despise doing. However, this paperwork is essential for minimizing taxes and ensuring that their rental property turns a profit.
Property management companies should be doing much of this paperwork on your behalf and keeping records of income and expenditure. This takes the hassle out of an otherwise tedious task. The company might refer you to a Denver bookkeeper who can compile your documents before tax season looms.
Image Source: BigStockPhoto.com (Licensed)
Site Disclaimer
The Content in this post and on this site is for informational and entertainment purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by HII or any third party service provider to buy or sell any securities or other financial instruments.
Nothing in this post or on this site constitutes professional and/or financial advice. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this post or on this site.
You recognize that when making investments, an investor may get back less than the amount invested. Information on past performance, where given, is not necessarily a guide to future performance.
Related Categories: Real Estate, Reviews
