If you own an investment property, you know how much time and effort goes into taking care of the property, renting it out, and dealing with all of the accounting for the property. If you handle all of these duties on your own, it can start to feel like a full-time job.
But what if you don't have to manage your property by yourself? What if there was a way to make money off of your investment property without spending countless hours managing it?
That's where real estate management companies come in! But what does a real estate management company do, exactly?
Keep reading to find out!
Market Your Property
Marketing is an important part of managing an investment property because, without marketing, you wouldn't attract quality tenants. Trying to market your property is a full-time commitment on its own, which is why you should work with a property management team that knows how to best market investment properties.
Marketing for your property includes yard signs, using online resources like Zillow.com, advertising on social media, and much more.
Create Airtight Lease Agreements
Creating a lease agreement is an in-depth process because it's a legal document that needs to protect you, your property, and the tenant. If you leave anything out of the agreement, you can risk losing a lot of money or even be held liable for omitting important information.
Real estate management companies know exactly what needs to be included in a lease agreement. They have consulted with attorneys to create a fool-proof, airtight agreement that will protect both you and your property.
Attracting tenants is only the first step, you then need to screen them to make sure they will be quality tenants and pay their rent on-time. Screening tenants include giving applications, completing background and credit checks, and receiving income documentation to ensure they can afford rent each month.
You might end up screening dozens of tenants before finding one that meets your criteria, so it's best to delegate this task to a management company.
If you own multiple properties, the last thing you want to do every month is worry about collecting rent. If your tenants haven't sent you their rent payment, you have to charge late fees and try to get them to pay it or else evict them. This can all be one big headache and isn't something you want to worry about on a monthly basis.
Real estate managers will collect rent, deal with late payments, and give eviction notices if a tenant does not pay rent. They will also quickly fill any vacancies after an eviction occurs so you don't lose money.
Handle Tenant Issues
There are so many things that can go unexpectedly wrong on a property. There might be a pest problem, a power outage, or plumbing issues that tenants need to be fixed immediately. Unless you want to wake up to calls at 2 in the morning or have to drop everything you're doing to take care of tenant complaints, you should work with a real estate manager.
Not only will they handle tenant issues in regards to properties, but they will also handle tenants who are damaging your property or are not following the lease agreement. In addition, they can handle any legal disputes with tenants in regard to the property and lease agreement.
Take Care of Repairs and Maintenance
Do you want to spend weekends at your investment properties doing maintenance tasks or making repairs to the home? If not, then you should work with a property manager.
They will take care of any repairs that need to be completed as soon as possible. They also have local contacts including electricians, plumbers, and handymen that they will send to your property for any additional maintenance tasks that need to be completed.
Once a lease agreement is up, you will need to complete a property inspection to record any damages that have occurred during the previous tenant's occupancy. This is very time-consuming and requires a keen eye for detail as well as experience in inspecting properties, otherwise, something can be missed and cost you money.
A property management company will complete property inspections and provide you with a detailed report so you know the exact state of your property following an occupancy.
Collecting rent, paying mortgages, property taxes, HOA fees, and repair costs can lead to a complicated financial situation. You need to be able to track the money you are spending compared to the money you are receiving to ensure you are earning enough money.
Real estate management companies will provide accounting services to track monthly expenses and income. They will provide you with a detailed financial report that's easy to read and allows you to have a deeper understanding of your financial situation in regard to your investment property.
Start Working with a Real Estate Management Company
Working with a real estate management company can save you a ton of time and money and make owning an investment property a breeze.
Here at Professional Real Estate Management, we have nearly two decades of experience in property management and investment services. We know what it takes to manage a property and we will take all of the pressure and stress off of your back. Contact us today to learn more about our real estate management services!