A Guide to Property Management
If you own rental property, you may be wondering if you should hire a property management company, or manage the property yourself. There are many things that a property management company can do for you to ease the burden of caring for the property yourself. There are many aspects of managing a rental property and it can sometimes become overwhelming. Before you make the decision to hire a property manager, or do the managing yourself, you may want to first learn what a property manager can do for you. A guide to property management is the best resource for you to make the decision.
Locating and Managing Tenants
A vacant rental property will not bring in money. A good property management company will keep your rental full. They will advertise the property and find interested parties. Once a potential tenant is found, background checks and credit checks are run by the property manager to be sure there won’t be any issues down the road with the tenants. They will take care of the lease signing and track when the lease is up. Should you run into any issues with the tenant, the property management company will know all the legal ins and outs to deal with the issues. They know how to evict tenants legally and can work with the courts for you to get any money that is owed to you. The property management company will deal with the tenant directly so that you don’t have to.
One of the trickiest parts of property management is keeping track of cash incoming as well as outgoing. Managing a rental property doesn’t just consist of collecting rent. There will be expenses associated with your rental property as well, and keeping accurate records is very important. In addition to tracking the amount of rent paid, security deposits and pet deposits need to be tracked as well. Outgoing expenses can consist of payments to independent contractors, repair men and payments for property taxes and property insurance. All of this financial information will be necessary at the end of the year to report income or loss to the government.
Maintaining your rental property can be very time consuming and become an inconvenience to you. A property management company will have someone on staff that is on call to take care of maintenance issues 24 hours a day, 7 days a week. This way you are not awakened at by a 3 am call to fix a broken heater. Most of these maintenance professionals are able to fix a wide variety of maintenance problems. Once a rental property is vacated, the property needs to be painted, cleaned and any maintenance issues need to be addressed.
It is a good idea to follow this guide to property management when deciding whether or not to hire a property manager or do it yourself. Your time is very valuable to you, and hiring a property manager will free up your time and take the hassles out of managing your rental property.