- Business and Employment»
- Small Businesses & Entrepreneurs
Real Estate Rentals
Nobody enjoys stress, paperwork or constantly dealing with money and maintenance issues. If you have a place you are looking to rent out and make a profit, you can pay a small fee and hire a property management company to do all of the dirty work for you. Then you will be able to have time for your family, friends, work or whatever it is that you desire to spend your time on, rather than taking on the worries and headaches that can come from running a rental privately. Property Management Companies are available to assist you and help you be comfortable and make money.
There are several benefits of hiring a rental management company. As the owner of a rental using one of these businesses, you will have a middleman who is familiar with all proper procedures and guidelines to follow when renting a place out to someone. These companies, many who have been in business for several years are experienced with the many detailed issues that can arise and are very well aware of how to handle them legally and properly. There is a very good chance that as a landlord you may be unfamiliar with much that is associated with renting a property out or how to handle circumstances and situations that arise regularly.
Some of the responsibilities that a property management company can take care of for you are the advertising/marketing your property (listing it for rent). They already have access to other businesses that will advertise your rental that they have been using and are familiar with. The background checks and screening of a new tenant. They already know how to identify a good, responsible or a possibly bad tenant. When a tenant is found there is a lot of office work involved doing paperwork like drawing up a rental agreement, leases, collection of security deposits, pet deposits and rents. They will prepare the rental and do maintenance before during and after the tenant was there as well as make sure that the gardening or landscaping are done along with any other necessary cosmetics to ensure the property’s appearance is nice and attractive the entire time they handle the rental. They already have an existing relationship with plumbers, handymen, gardeners and lawyers and the costs for these workers are much more reasonable through rental management companies than say if you were to hire someone out of the classified ads. The property management company handles pay or quit notices, evictions and other legal matters that can arise. They also offer assistance when tax season approaches. That is a great value as well.
You can save a nice amount of cash by using a property management company, also known as rental management companies. You won’t have to pay for all of the things discussed in this article. Just the beginning costs and your small monthly fee out of the rent. The rates are different from group to group, yet quite reasonable. They usually collect on the average about 10% of the monthly rental income which is another thing they are professionals at determining. They will be able to help you get the appropriate rent amount whereas, if you were renting it out on your own, there’s always the chance that you ask too much or too little for the rent. The commercial properties are different fees. Amounts can be between 4% and 15%. Just like anything else if you get a place that has a very low rate you may not get what you think you paid for. Much of this rate is determined by the type of property being marketed. There is also a small setup fee/startup fee paid up front that gives them the ability to do any prerental necessities such as carpet cleaning, painting or repairs. Leasing fees pay the manager for their time and efforts to get a good and new tenant as soon as possible. They are expected and pretty standard, running right around 50% of the 1st month's rent.
There are a ton of advantages in hiring a property management company. You will save a lot of your money and prevent more stress in your life and on yourself by allowing these people to do this professionally for you. With regular inspections and maintenance, you might have a better property than what you started off with. You can look up reviews and read what past landlords and tenants have to say regarding a company of interest and use that as a type of reference to guide you through choosing one.
If you are a tenant and in search of a new home, you will definitely want to go through a property management company. There are many reasons why. They will be able to show you different properties for rent and help find just the right one for your personal and financial needs because they have more than just one for rent. Some tenants may have stateaid or county programs that assist them with rent money and a rental management company deals with these types of transactions on a regular basis. A private landlord may be skeptical in dealing with these types of assistance programs. Some do not wish to give out their personal tax id or information with the possible worry of the government getting involved in their money.
A property management company is a middleman between you and your landlord. If you have a backed up sink, the dishwasher broke, ants appeared in your home out of nowhere, you can be certain that this business is just that, “ a business.” They are the professionals and will get to your urgent requests immediately. They have access to people oncall to do the job that needs to be done. You also have the security of knowing that a walkthrough with an agent is documented and anything you may find out of line prior to moving in will be tended to right away and documented. They make certain prior to renting out that everything is clean and functioning for you, like the garage door opener, the stove or that the locks on the doors to the house work fine. It can be anything, that’s what they do, maintain the property you are existing on. Also, a property management company has handled pretty much most of the situations you may possibly find yourself in. If you are short on your rent, having to be late with the rent or whatever your situation may be, they know how to help you. These places will talk to the owner for you. Some may charge late fees, but at least it’s workable. Using property management is a good way to go.