As the owner of a rental property, there are a lot of issues that need to be taken care of relating to the property. Starting from screening the tenant to maintaining the property, you have to look into every aspect to ensure that you maximize returns from your investment.
A property management company takes care of all these responsibilities for a fee. They will list your investment in the market and shortlist potential tenants. The final decision regarding the tenant is yours. Vacation rental properties need to be managed regularly due to tenant turnover, performing background checks, and of course property maintenance. Logistics for guests can be a challenge if you live far from your rental property, but you don’t need to worry about any of it if you hire a property management company.
Do I Need a Property Management Company?
There are certain questions you need to ask yourself before hiring a property management company. Would you be able to handle the day-to-day problems relating to maintenance? If there is a violation of the rental agreement by a guest, will you be able to resolve the matter if you don’t live nearby?
If distance were not a problem, there are certain responsibilities that are time-consuming. You will need to maintain a tenant list, monitor the status of the tenant in terms of who is entering and who is leaving or address their grievances in the middle of the night. If these tasks seem challenging, you need a property management company.
The company will be the one-point solution for all your requirements, and they will charge you a fee of around 10% of the rental. Here are the services which are offered:
- Keeping track of your rental calendar
- Making sure that there is no delay in tenant turnover
- Carrying out the background checks for tenants and screening them
- Cleaning the property when vacant
- Ensuring guests have access to the property
- Regular maintenance of your property
- Handling complaints by guests
- Ensuring guests leave as scheduled
- Monthly property accounting and reporting
In the case of commercial property, you get more services.
Do Your Research Before Hiring
You need to do a background check before you hire a property management company. For this, it is important to ask them for referrals who will answer questions such as:
- The number of months the property was on rent
- Did the income meet your expectations?
- Was the maintenance up to the mark
- How well were your problems handled
- Any other information about the company which is relevant
There are online resources like Yelp, where you can find reviews by others regarding a particular property management company. Every property management will have unhappy clients, however, you need to see how the company responds to these problems.
Manage Your Property Better with Property Management Companies
As a property owner, your goal would be to earn the best return on your investment possible. If you own multiple properties or live far from the rental property, letting a property management company handle your investment would be a smart choice. The property management company would take care of renewing your lease, ensure timely payments, handle regular maintenance issues and address the problems of your tenants. Considering the time and effort saved, the fee charged by them is worth it. The most important thing to remember is that the right property management company will ensure that your financial statements are filed on time and that the agreements with the tenant are following the laws of the state. This will protect you from expensive lawsuits
As a property owner, you should be able to earn a regular flow of income with the least amount of headaches. The property management company will ensure that tenants leave on time, and the renewal process is done well before the tenancy period ends. This leads to lower vacancies and less impact on your monthly income.
You are also provided with trained staff by the property management company which reduces the possibilities of delays, especially when it comes to compliance with tax issues.
With higher returns and fewer hassles, it makes sense to hire a property management company.
OHI is a fifteen-year-old real estate services company working with 50+ commercial and residential real estate developers, funds and property management companies across USA. Our deep expertise in real estate accounting, financial analysis, lease administration and asset management has helped clients cut associated costs by 40-50%. We currently provide these services to a portfolio of 50000 units across clients.
We invite you to experience finance and accounting outsourcing through us.