**This article was originally published on February 17, 2018 and was updated on February 18, 2021.
There is more to managing rental property than just putting a “For Rent” sign on the front of your unit and collecting rent, and there are entire property management companies to prove it. What do rental property management companies do exactly, and why do you need one? Check out some of the services these companies provide and why it makes your life easier.
Tenant Screenings
In your initial excitement, you may be tempted to let the first person interested sign a lease. But wait! What do you really know about this person? How do you know they won’t damage your property or skip on rent? A professional property management company helps you avoid such issues by taking the time to extensively screen each potential tenant to ensure the tenant signing the lease is qualified to live in your home.
Property managers know what questions to ask and what red flags to look out for. For example, background checks can determine any criminal behavior in a person’s past, even potential terrorist activities. A thorough tenant screening also includes interviewing employers and former landlords, verifying income, and a lot more to get you a full picture of your prospective tenant.
Legal Responsibilities
Sometimes all it takes is one legal issue or lawsuit to drain your cash reserves completely. Do you know all the laws related to leasing and renting a property? Landlords need to comply with all of the laws and regulations involving rental properties. These laws are Federal, State, and local municipality and require quite a bit of research and knowledge to understand. There are insurance requirements, licensing requirements, landlord/tenant laws, and fair housing laws to start. Some of these laws and regulations can get complicated and even change drastically over time. Not understanding or complying with property management laws and regulations can create mistakes that cost you money and reputation.
Hiring a trustworthy and expert rental property management company protects you and your property when it comes to legal issues. Companies like Real Property Management Investment Solutions know how to properly comply with those laws to help you avoid legal risks that will cost you money.
Rent Collection
Rent collection is vital to managing a successful rental property. This process can be made easier with an experienced rental property management company on your side. Online payment options and online tenant portals giving access to 24 hours a day, 7 days a week to tenants, make on-time payments easier. When a tenant moves in, a clear understanding of a firm but fair payment policy helps avoid confusion. Property managers keep the process professional and not personal, which is especially difficult for first-time property owners.
Difficult Tenant Situations
Sadly, life isn’t always paradise. Tenants may experience personal difficulties with relationships or job loss. These difficult tenants’ situations can result in missed or late rent payments or even property damage. A property manager takes on the ugly responsibility of asking for late rent or even dealing with costly and time-consuming evictions for you.
Constant Availability
As a landlord, you either need to be available to your tenants 24 hours a day, 7 days a week or find someone else who can be. Emergency maintenance and difficult tenant situations can happen at any time of day, week, month, or year. Just imagine sitting down at the dinner table for an important family occasion or holiday and then getting that call demanding your immediate attention. With the expectation to be available at any time on any day, rental property management can be a very stressful experience. The job is much easier for you when you partner with an experienced and professional management company.
As a property owner, a rental property management company is your next most valuable asset after your property and your tenants. Hiring the right one can make it, so you stop stressing over residents, property concerns, and personal relationship conflicts. Get a free assessment of your rental property from Real Property Management Investment Solutions today.
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