Finding a good property management company could be key to your success as a landlord. It is not easy being a landlord even if the property is close to where you live. If you own a property at a considerable distance from your residence, it becomes quite tricky.
Benefits of a Property Management Company
The property management company will collect rent, make a given set of repairs, and deal with day-to-day management of a property. The manage properties for a set fee, typically 10-percent of rental receipts. A property management reviews website lets you get a list of property management companies in your area and gives you the means to contact them.
Screening Prospective Tenants
Many, if not all, of the tasks involved in property management are simple, but it still can add up to a lot of work. Take tenant reference checking.
• First of all, a landlord or a property management firm has to meet with prospective tenants and see if they qualify to become tenants. This can be a critical phase where just meeting people can weed out tenants with obvious problems.
•Then you have to do the credit check, which can be done with use of companies that do background searches. The reports have to be paid for, and then carefully checked for warning signs beyond merely a bad credit rating. And this is just the beginning.
Often collecting rent is easy, but some tenants do not pay on time.
• You need to talk to the tenants and see if they have a special problem or reason for not paying, and try not to raise a major alarm over temporary problems.
• On the other hand, tenants who are chronically late with the rent need to pay late fees, and if the problem gets out of hand, they need to be evicted.
• This is another problem that the landlord, namely you, may wish to avoid by hiring a property management company.
Most of the time landlords can collect rent and not have problems, but emergency situations can arise.
• Some of these emergencies are relatively trivial, like someone is locked out of their apartment. Still, someone has to be on hand, or on call to deal with this. They have to get out the spare key, because hopefully you are not going to be forced to call a locksmith.
• What if the water system has a problem. Most long-standing complaints can be dealt with by sending in plumbers to fix leaky pipes and deal with similar complaints. What is a water pipe breaks and there is flooding. What if there is some sort of fire? These are emergencies that have to be dealt with.
•Sometimes quick action on the scene can avoid thousands of dollars in repair costs or even the destruction of the rental unit and physical harm to tenants.
All of these situations can be dealt with by a good property management company.