Investing in real estate is an exciting endeavor. You're taking your future into your own hands and you're ready to earn passive income off of your property.
However, many first-time real estate investors don't realize how much work goes into owning and renting out a property. In fact, it can quickly become a full-time job which negates the premise of earning a passive income off of your investment.
That's why property management companies exist. But, what does a property management company do, exactly?
Keep reading to learn the services a property management company will provide you with.
Set Appropriate Rent Price
Setting a rent price for your property might sound like an easy, straightforward task. But in order to maximize your profits without prolonged vacancies, you need to find the rent sweet-spot. This requires a lot of research and local market knowledge.
Setting a rent price goes beyond simply looking at what nearby properties are charging for rent. You need to consider what makes your property more (or less) valuable than the properties around you and set the price with that knowledge.
A property management company has a deep understanding of the local market and what potential tenants are looking for in a rental property. With that knowledge, they can set the perfect rent price to earn you the most money off of your property.
Market Your Property
No matter how amazing your property is, no one will apply to rent if it isn't being marketed. People can't want what they don't know exists.
Property management companies will market your property on popular renting sites to attract tenants. They'll post attractive pictures and talk up your property so people will be rushing to apply to rent your unit.
Attracting tenants through marketing is only half the battle. It doesn't matter how many tenants you attract if they all have poor credit and renting histories. A property manager will screen tenant applications, run background checks, credit checks, and even meet them in person before deciding who the best tenant will be.
Screening tenants is so important because, with a quality tenant, you minimize the risk of vacancies and evictions. Quality tenants will also take better care of your home and will pay rent on time.
A property management company will collect rent from your tenants and send you monthly reports with your proceeds.
This is a huge benefit because collecting rent from tenants can be a real headache, and it's best to let people who have experience dealing with tenants take care of it. Then, you'll be getting a financial report each month laying out any expenses and showing your profits for each month.
Deals with Repairs and Maintenance
Issues arise with every property and repairs and maintenance need to be done on short notice. Without a property management company, you'll be left with tenants calling you directly about issues with plumbing, HVAC, electricity, or broken appliances all the time. You'll have to either fix the issues yourself or call professionals to do the repairs.
With a property management company, you won't have to hear about any of those issues. Tenants will call them to make repairs. A property manager will also do routine maintenance to prevent expensive issues from happening down the line.
Home inspections are necessary when a tenant moves out to ensure the property is in good shape. A property management company has years of experience inspecting properties so you know they won't miss a thing.
They will put together an inspection report and hold any amount of the tenant's security deposit depending on the damage that's been done on the property. Then, they will make the appropriate repairs before the next tenant moves in.
What Does a Property Management Company Do? They Make Your Life Easier
Now that we've answered the question "what does a property management company do", it's clear that they are necessary for real estate investors. This is especially true for investors that want to be hands-off when it comes to the day-to-day tasks.
Here at Professional Real Estate Management and Investment Services Inc, we offer all of these services and more, so you can rest assured that your investment properties are taken care of. Contact us today to learn more about how we can help you.