1. Establishing the correct rental rates for your property
A professional property management company will do a proper rental analysis based on current market conditions and provide an owner with an optimal rental price that will be a good reflection of market rents in the area. They will likely have their own database of comparables to assist with the pricing and that takes the guess work out of establishing a property rental rate. Balancing the highest possible rental rate with the lowest possible vacancy rate is the end goal.
2. Professionally marketing your property for rent
A professional property management company will advertise your unit for rent using a plethora of strategies. From professional management signs to strategic advertising, this will ensure that your property is visible to prospective tenants. Hiring a management company that has an actual walk-in storefront is a necessity because it allows your potential tenant to have face to face contact with the company to personally sell the unit on all of its positive features.
3. Collecting and managing tenant funds
Collecting on time rent from tenants can be daunting and having a professional to manage tenant funds is one of the most beneficial parts of property management. Property management companies have efficient systems in place to effectively collect rent and maintain on-time payments. You’ll find this particularly important if you have a limited number of properties, and collecting payments on time is crucial to maintaining your cash flow.
4. Choosing the ideal candidate to rent your property
Experienced property managers are trained to find the best tenants to rent your property. Having a thorough tenant screening process is one of the most important aspects of tenant selection. It is imperative that a full background check, credit check, rental reference verification and employment check be completed prior to tenant approval. Also, making sure you are in compliance with fair housing requirements and federal/local laws can be overwhelming unless you are always staying abreast of the laws.
5. Maximizing your profit
Professional property managers charge a percentage of your property’s monthly rental rate in exchange for their services. Even with the fees, the savings can be significant when you consider the cost of your time, discounts from their preferred vendors passed on to you, keeping the unit at market rent and avoiding costly mistakes by violating landlord tenant laws that you may not be aware of.