What Does a Property Management Company Do?
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.
Manage Tenants
Another area of focus that can be improved with the help …
