Many landlords make the mistake of determining that the self-management of their rental properties will save them the expense of hiring someone else to do it on their behalf for a percentage of the rental price. While the cost savings might be easy to see on the face of it, there is a hidden price to pay when opting for rental property self-management. You might see more of your rental income when you go this route. However, most experienced landlords will tell you that the little extra rental income you earn pales in comparison with how much time and money you expend on self-management processes.
Here are the ways that hiring a property management company will save you time and money:
Reduced vacancies
Regarding managing rentals in Denver or any other US city, landlords should look at local companies like Evernest, the Miller Frishman Group, or Evolve Real Estate Property Management. Evernest has an established presence in Denver, Colorado Springs, Fort Collins, and Boulder. Its team of professional, qualified property management agents ensures that landlords do not need to worry about the day-to-day minutiae of owning a rental property. Evernest offers a full suite of property management services, including tenant screening, rent collection, and maintenance. A landlord’s alternative to hiring a local property management company is choosing one of America’s largest conglomerates, such as Greystar Real Estate Partners or Pinnacle Property Management Services.
Statistics prove that landlords working with property management companies reduce how much time a rental property stands vacant. An empty house is a bad news for landlords as it means a lack of rental income. Property managers have waiting lists of tenants and can quickly get new renters into a rental home.
Legalities
Understanding the ins and outs of federal, state, and local laws about being a landlord is complex and would take a property owner years to learn. Yet, they cannot plead ignorance when found in violation of these regulations and face hefty fines and penalties for their actions or lack thereof. Another aspect of being a rental property owner is securing lease contracts with tenants that protect each party’s rights while stipulating their responsibilities. A single legal loophole in this agreement could see a landlord saddled with nightmare tenants.
The legalities of property rental are what agents study and have a high degree of familiarity with. It is their bread and butter. Therefore, they can ensure that landlords comply with all regulations and requirements, preventing them from getting into legal trouble. They have the necessary contracts available and know how to stay on the right side of the law. Additionally, agents know how to manage an eviction, a complicated process that can become expensive and drawn-out without the necessary know-how.
Better tenants
Property management companies have complex screening and vetting processes, allowing them access to top-quality tenants who pay on time, do not cause damage, and will not cause trouble in the neighborhood. Tenants who apply through a property manager know they cannot take chances and be less than honest on their applications as the company will verify everything. Some renters try and take advantage of private landlords, knowing they are unlikely to undertake checks as rigorous as those used by property managers.
Screening and vetting tenants is a time-consuming process that requires methodical attention to detail. It involves many phone calls and emails, dealing with credit agencies, and verifying financial information. Many private landlords are not as thorough about the process as they should be, ending up with problem tenants.
Rent collection
Most landlords agree that getting rent from their tenants is as challenging as getting blood from a stone. Tenants come up with dozens of excuses to avoid paying their rent, hoping to take advantage of their landlord. They also duck and dive, never at home when property owners arrive to collect their money. This results in wasted trips and time trying to catch up with elusive renters.
Property management companies handle rent collection on their clients’ behalf. Their contracts are watertight, leaving tenants no wriggle room to try and avoid payment. Agents also provide convenient payment methods, such as debit orders, negating the need to chase tenants down. They know how to manage an eviction and will stand behind the landlord to collect outstanding fees as they stand to get their percentage commission from it.
Also read: Importance of Using a Property Management Software for Landlords
Maintenance and repairs
Most self-managing landlords feel that they are on call 24/7. Indeed, they need to be available at any time to manage emergencies that require repairs and supervise ongoing maintenance. For those with full-time jobs or who live far away from their rental property, it means time off and spending money dealing with the issues arising from rental property ownership.
Property management companies work with a network of vetted contractors who provide stellar services at reasonable rates. Agents manage the process, taking this burden off a landlord’s shoulders, freeing up time for them to attend to other commitments.