It is a great time to invest in rental property, with the interest rates dropping to an all time low. If investing in a larger or multi-family rental property, it is a full-time job in itself to take up property management on oneself. As an owner, you definitely don’t want to lose money on your investment while at the same time being frustrated with the number of tasks required to manage your property. Thus it makes sense for rental property owners to outsource services from a company, which is experienced at property management. Certain services that the property owners should think of outsourcing are:
It can be a time consuming and stressful process to collect the rent from tenants, as many tenants ought to be slow with making their payments. Often, it is in this frustration of delayed payments that the owner and tenant relationship gets permanently hampered, making the owner want to find a replacement tenant, often losing on the money until the new tenant comes over. An independent third party, a property management company can help with not involving relationships in the payment collection process. This company, due to experience with similar cases and service will be able to deal with the case with more patience and devote more time to collecting the rent that owners will be able to. Thus, property management companies end up achieving better collection rates.
Regularly scheduled inspections are a crucial part of managing a property for the owner to be sure that there investment is in good condition and holding up. If a property management company is hired to make the inspections, they will ensure that the smallest of issues are address before they expand and turn into larger problems. With the tenants aware that the owner is concerned about the upkeep of the property, these inspections serve the purpose of eliminating any neglect or abuse of the property on the tenant’s part. There might also be circumstances requiring specialized inspection instead of the regular periodic inspections. These inspections may be to investigate any smells, noises, unusual leaks or any complaints as received from the tenants. When left on a property management company, they will know exactly how and when to bring in the contractor to perform the inspection. Not only will the owners incur higher costs on handling the inspection themselves but also they may end up calling the wrong inspector and thus won’t find a solution to the problem at all.
There are many legal issues the property owners must be aware of when renting the property. There are many lingering question like what might be the conflicts before a tenant moves out, when and what damages would the owner be liable for, and are there problems the owner needs to address before the tenant moves in etc. To minimize the risk of elevating their own liability, the owners must have a legal acumen to address these questions. Not only will a property management company be able to refer owner to trusted legal professionals but will also be more adept at understanding the law themselves.
Outsourcing these services will not only end up saving the owner’s time but may in the long run pay off in improving the overall condition of the property as well as reducing legal risks or losing money at the hands of the tenant.