Residential investment properties are a great way to achieve a stable, passive income stream. However, managing residential investment properties is a multi-faceted, detail-oriented, and time-consuming task that is made easier by hiring a professional property management company.
Here are the Top 5 Reasons why hiring a Professional Property Management company can be a great benefit to investors and owners.
- Tenant Screening & Retention: One of the key success factors for ensuring maximum ROI on your residential investment property is to place a properly qualified and vetted tenant. A thorough and rigorous screening process should include a credit and criminal history background check, employment and income verification, previous residency/rental history verification, and public records search for evictions. Placing a tenant that meets all qualification criteria greatly reduces the risk of tenant payment default and eviction. Reliable, responsible tenants also take better care of the property and are more likely to renew from one lease term to the next.
- Property Maintenance & Repairs: A professional property management company has built relationships with reliable, licensed, and insured vendors to conduct property inspections, maintenance, and repairs. Excellent asset care starts with thorough move-in and move-out inspections as well as mid-lease inspections to ensure residents are treating the property well. Property Managers will also schedule trusted vendors for all property maintenance needs from small repairs to larger remodel projects and especially those late-night emergency calls. Their focus is to maintain your property in its best condition to enhance your ability to attract responsible tenants paying competitive market rent rates which maximizes your ROI.
- Legal Compliance: There are federal statutory regulations and Fair Housing standards and guidelines, as well as state, county, and city ordinances which must be considered in the residential property management industry. A professional property management company specializes in ensuring that you and your investment properties are in compliance with all laws and regulations for habitability, fair housing, lease agreements, eviction processes, and property safety measures.
- Marketing & Rent Optimization: Property Managers are specialists in their market. They have direct knowledge and experience to help market your property to attract the largest pool of applicants. They can leverage their industry knowledge to help you properly prepare your property with the features that tenants desire most in order to draw in the types of applicants that will in turn become excellent tenants paying competitive market rent rates.
- Time & Stress Savings: Between screening applicants, rent collection, property maintenance, and property inspections, there are many levels to properly and successfully managing a residential investment property. That effort is certainly increased as your portfolio of properties grows in number. If your goal is stable, passive income, then hiring a professional property management company is a great way to take the headache out of the process.
While a professional property management company charges a percentage of your rent plus some other miscellaneous fees for their services, the benefit of their expertise and efficiency far outweighs your level of stress and time spent, especially as you scale your portfolio up. A professional property management company has the industry expertise and technology in place to help you maximize your ROI and ensure a more profitable and smooth residential investment ownership process.
