Are you a landlord looking for ways to make your rental property more profitable? Do you want better, long-term tenants who are happy to pay fair market price for rent? If you’re tired of dealing with tenants who don’t pay the rent on time or tenants who leave behind a huge mess, you need a property management company.
You bought rental property to turn a profit and you shouldn’t have to deal with any nonsense. The good news is, hiring a property management company will eliminate that nonsense from your life and improve your profitability.
1. Property management companies generate on-time rent payments
A professional property management company knows how to get tenants to pay rent on time. Property management teams are experts at relating to tenants. In addition to enforcing late fees, they’ll generate a good relationship with your tenants from day one.
If you’re never outsourced your job as a landlord, it’s time. However, before you hire a team, make sure the company you choose offers the services you need and has a tenant-focused mindset.
Some property management companies offer limited management services while others are full-service. For instance, Green Residential supports Houston landlords with services like tenant screening, rent collection, financial oversight, marketing, professional photography, repairs and maintenance, property inspection, and 24-hour support. All of these services will affect your tenant relationships and are best left to the pros.
2. You’ll have more time to seek additional investments
Are you involved in other investments besides real estate? If you’re running around town handling repairs, depositing rent, and managing your books, how will you find time to pursue your additional investments?
Being a landlord is a tough job that requires more time than you probably thought. Hiring a property management company gives you your time back so you can pursue additional investments without neglecting your tenants.
3. You won’t struggle at tax time
Provided you find a company that will oversee your finances, you’ll have an easier time filing your taxes.
No matter how great you are at math, managing finances related to rental income is complex. There are a bunch of transactions to keep track of, including rent payments, repairs, maintenance, background checks, and tenant screening fees. Tracking all of these expenses requires a tax-friendly system that puts all the important numbers in one place.
A reputable property management company will already have a tried-and-true system for tracking expenses and income. For that company, tracking expenses will be just part of a normal day’s work. When tax time comes, you’ll get all the data you need in a readable format and your tax preparer will love you.
4. Your units will be occupied
You won’t make any money when your units are empty. How much time do you have to find a new tenant? A few days per week?
A property management company will work full-time to fill your rental unit and your vacancies will fill up much faster than if you were on your own. Additionally, you won’t feel the financial pressure to approve a tenant you’d rather not have.
5. Property management companies will implement regular rent increases
Over time, most property values rise. A property management company will implement regular rent increases to make sure you see that value in your pocket.
Rent increases ensure you benefit from your property’s increase in value. If you’ve never considered implementing a rent increase, it’s time to rethink your stance. Unless you live in an area with rent control, reasonable rent increases can net you some good profit.
6. Better tenant screening
When you first meet tenants, you can’t know who might end up destroying your property. There isn’t any way to tell who the potential problem tenants are by looking at and interacting with them. However, you can weed out the worst possible candidates through strict tenant screening.
A property management company will hold tenants to high standards that include passing a background check and having a credit score of at least 650. A property management company will also reject applicants with a history of eviction or if they catch them lying on the application.
Don’t do all the hard work alone
You don’t have to do all the work of a landlord. Partner with a property management company to take the burden off your shoulders. Your investments will be more profitable and you’ll have more free time.