Like most businesses, your rental property will need hands-on management to become profitable, and it will take a lot of work to handle the day-to-day operations alone. While it is possible to do it yourself, hiring a good property management company might be the best decision you'll make for your investment.
Why Hiring a Property Management Company is a Good Idea
Handling Day-to-Day Management
Most property management companies cover all the property operations a rental business would require every day such as:
- Collecting Monthly Rent Payments
- Responding Quickly to Maintenance Requests
- Handling Tenant Disputes
- Conducting Repairs Requested by Tenants
- Keeping Tabs on Your Investment Through Detailed Reporting
Managing tenants can easily become overwhelming, especially if you have multiple properties to look after. A property management company will have enough resources to handle more than one property, helping you naturally scale your portfolio as it grows.
Visibility Boost for Your Investment Property
Most property managers also offer marketing services to ensure that your rental property listings reach their target market. Austin Property Management, for instance, assigns dedicated leasing specialists to quickly fill your vacant units.
We also take professional photos of your property, since it will be the first thing potential tenants will see when they look through listings online. To make sure that they do find your rental units, we market your property through industry-leading management software and popular rental sites like Zillow and Trulia.
Legal Compliance Based on Local Laws
Many landlords can handle self-management for basic operations, but you can quickly land in hot water if you don't know all the landlord-tenant laws and regulations to comply with regarding your rental business. Violations can cost you money and damage your reputation.
You can either consult an attorney for legal advice, or you can hire a property manager who already has established knowledge on the matter. You can save yourself from legal troubles down the road and not have to navigate all the applicable laws yourself.
Finding and Screening Prospective Tenants
Property managers will not only find renters for your rental properties, but they can also handle the tenant screening process to ensure that your rental investment is protected by renting to tenants who comply with the lease agreement. The criteria we use to screen your tenants include:
- Credit Reports
- Eviction History Check
- Employment Verification
- Criminal History Check
- Debt-to-Income Ratios
- Previous Landlord Calls
Passive Income
Property owners don't have to self-manage. They can sit back and earn passively by hiring a property manager to handle rental management. All you have to worry about are property management fees, and they often depend on how well your rental properties are doing. However, the increased profits make these fees well worth the investment.
Real Estate Market Expertise
A professional property manager monitors current market conditions, which allows them to make an informed decision for your real estate investment and rental rates. Not knowing how to navigate through the rental real estate market can greatly detriment the cash flow of a rental property.
Taking Over the Hard Tasks
Self-managing property owners will have to shoulder the unpleasant parts of owning rental properties. Aside from collecting rent and property maintenance, they might have to deal with issues like late fees for tenants or even eviction proceedings.
Austin Property Management will save you the trouble as a property owner and re-rent the property promptly, making sure that you get good tenants. It's also the job of the property manager to recover rent and other amounts that you are owed.
Finding the Right Property Managers
Hiring a property manager requires meticulous research, especially if you plan to give complete control to the management company. There are ways to determine which companies are best qualified to manage rental properties, and here are the factors to look into:
Look For Reviews
Property management companies are often reviewed by their clients, and this can provide you with crucial insight into how they will handle your rental business. You can even ask for references directly from their customers, and they might give you a more comprehensive review of the company.
Experience and Expertise
Simply hiring a property manager isn't enough. You need to make sure they are a real estate professional, and that can be seen through their years of experience in the field. A good track record and industry knowledge will provide numerous benefits in both short and long-term success.
Services Offered
The services offered by property managers will affect how much work is left for you. Some only collect rent or conduct property inspections and maintenance, in which case self-managing your own properties might be the better choice.
You'll benefit more from hiring a property manager who can go beyond collecting rent payments such as handling evictions or marketing your property to find tenants, as well as conducting background checks to make sure they are good renters. Full service should mean nothing less than the whole package!
Responsiveness and Tenant Relations
A property manager will often need to respond to tenant inquiries like maintenance issues. Their responsiveness to tenant complaints is important, to your tenants and your property’s well-being. Professional management requires them to stay composed, no matter how difficult the situation is.
Hiring a property manager who’s rude to tenants will damage the reputation of your rentals, which could increase your vacancy rates and scare a potential real estate investor away.
Service Costs
You need to understand the fee structure of the property manager to determine whether the property manager is worth the monthly fee. Take into consideration how many properties you need property managers for, and how to save money by picking which services you'll need.
Tools and Technologies
Many property managers provide you with access to tools and technologies for streamlined operations. Austin Property Management, for instance, has an in-house portal where tenants directly pay and owners monitor reports.
It's best to hire a property manager who uses such tools, especially in the modern age, when tenants prefer handling their tasks digitally and owners prefer to use certain software for automation.
We Can Be Your Property Manager
No matter how many units you have, you can be sure that Austin Property Management will be able to keep up with rent collection and keep your property well-maintained. You can start with our free ROI Calculator to see how well your business is doing. From there, feel free to consult us to learn how you can maximize your property's value. We offer free consultations to all property owners in the area!
