If you are someone who is considering investing in real estate for profit and you don’t have the management skills to turn it into a rental, then hiring a property management company to oversee your investment should be for you. So what does a property management company do? Whether you want to outsource a task or all operations, hiring an outside company is helpful because they would take on the everyday responsibilities below.
Manage the Rental
When it comes to rental management, there are three stages of responsibilities that an experienced property management company should focus on. These include:
Determining the rent — The property manager analyzes the market, compares properties, and then determines the optimal rental price.
Rent collection – The company you hire creates a collection system. They set required payment dates and enforce late fees to late-paying tenants.
Modify Rent —After each year when the lease is completed, the property management company that oversees your property may increase the rent each year, in accordance with state and/or municipal law. They can choose to lower it if they decide it is necessary to do so.
Another area of focus that can be improved with the help of a property management company is managing the tenants who rent from you. As with rental management, there are a few specific areas that need to be highlighted. These include:
Searching for tenants — The property manager oversees the creation of attractive advertisements to attract potential tenants to view your property. They can also offer you good advice on makeovers so the property can stand out better.
Performing Background Checks – Your outsourcer will screen tenants, perform criminal and credit background checks for you. As they become more experienced, they will have more foresight about who would be a quality tenant to rent to you.
Lease Management — Establishing lease terms, managing legal clauses, determining the amount of the security deposit are all specialties that are easier for professionals to handle.
React to complaints and emergencies — You won’t have to worry about late-night calls or crazy scenarios involving leaks in your basement. Your property management company will handle tenant complaints or emergencies that occur.
Manage the move-in process — After a tenant advises the property manager that they are moving, the manager will oversee the move-in process. They will inspect the unit, checking for any damage that needs to be repaired. They will then determine how the security deposit will be used for repairs and cleaning. Finally, they will find a new tenant to fill the vacancy.
Handling Evictions —When a tenant becomes unruly due to non-payment or breaches the terms of the lease, the property manager will handle the eviction process.
Hire a Professional
When it comes to investing in real estate and using it as a way to improve your bottom line, the best recommendation is to hire a professional property management company. It gives you time to invest in more property for profit. Consider Aurora Property Management Company when you have an investment property for rent.