Financial security and peace of mind are worth paying for, especially in a business like single-family rentals. Property management companies can help by taking repetitive, low-value tasks off your plate so you can focus on making money from your property.
Here are a few great reasons to hire property management companies:
It frees up time to find the next property (or pursue another project)
Think about when you decided to become a landlord. Was it for the money? Maybe, but the freedom it offers was likely on the list, too. And if you want to grow, you'll need that free time. Investing in rental properties can provide great residual income when the rent from one property pays the mortgage for the first—and also funds the purchase of a second, and then maybe a third.
Yet it takes time to secure that sort of growth, and that time can easily get consumed by dealing with the day-to-day duties of maintaining your first building. Property management companies do the day-to-day work of property and tenant management so you can keep growing—or focus on any other projects you have in the works.
Someone else deals with tenants' problems
Calls can and will come at all hours when you're a landlord. How willing are you to spend time driving to your rental property—especially if it's not close—to address what may be a simple problem? Or even worse, a problem that may be impossible for you to solve with your tool belt? Everything from noisy neighbors to flooding toilets prompts tenants to ask their landlord to step in. Property management companies have professionals who are well-trained at diffusing disputes between neighbors or contacting the city so you aren't forced into the middle.
Someone else deals with (and helps avoid) problem tenants
Property management companies have a personal stake in finding high-quality tenants —and dealing with those who aren't so high-quality. Their fees come from the rent payments they collect on your behalf, so they're very good at securing it. From screening rental applicants for those most like to pay to motivating current tenants to pay on time, the specialized skills of property management companies can make a big difference in your ability to secure reliable rental payments.
Repairs and construction expertise built into the budget
As most landlords know, a good deal of your property budget goes toward maintenance and repairs. And sometimes your rental home needs more than a quick fix for a leaky faucet. Roof repair, aging stairs, and more require expertise you'll have to outsource yourself as a landlord. And because quality and price both affect your rental property profits, getting the right professional to do the job is both important and time-consuming.
All that changes when you hire a property management company. There's no need to make calls, schedule estimates with multiple contractors, coordinate schedules, or handle payments. The management company handles it all. And because they have a stake in your property's success, you can trust they'll do their best to do it right.
You can expand your investment area
It's easier to be a real estate investor when your investment options include properties within a large geographical area. Local landlords can't expand if they need to be able to show up at their properties at the drop of a hat. With a property management company handling your holdings, you can safely bid on properties that are the right fit for you— whether they're next door or two hours away.
You have an advocate protecting your investment
Keeping track of problem tenants and the nuance of local housing ordinances are no longer your problem when hiring a property management company. Evictions? They'll handle that. Marketing to attract more tenants? They'll handle that too. Property management companies are in the business of maximizing your earnings per square foot for every rental home you've invested in. They keep up with industry news and legal issues that could affect your property, so you can rest easy no matter what comes up.
Pro tip: Pick property management companies with care
All of those benefits make hiring a property management company a smart move for many landlords. But like anything else, some property management companies are better than others. If you're going to entrust the maintenance and profitability of your rental home to someone else, make sure you pick a trustworthy partner.
When searching for the right property management company for you, interview several and ask for credentials. Continuing education in property management shows commitment to the job, and The Institute of Real Estate Management (IREM) is one of a handful to offer accreditations. You can also check for certified experts in the database of the National Association of Residential Property Managers.
It's important to feel very comfortable with your property management partner. As you know, managing residential properties is a tough business, and the team you hire is representing you. Checking credentials and the NARPM database can help you decide if you'll get what you're paying for.
Looking for other ways to protect your rental property investment? Rent default protection covers up to two months of lost rent from tenants. Get a quote today!