Many Americans dream of owning a property. It’s one part of the American Dream, after all.
According to one source, around 65.1% of American households own their residences, representing about 83 million owner-occupied housing units. The source says this means north of 100 million American adults own homes.
But it’s one thing to own a home for you and your family — and it’s another thing to own a rental property, find tenants, and collect rental income each and every month. It’s not as easy as it sounds, however, since passive income is only passive as long as tenants pay up.
All it’ll take is one rogue tenant who decides that he or she doesn’t have to pay on time or at all to mess everything up. That’s when the American Dream can feel more like the American Nightmare. Instead of losing sleep over tenants behaving badly, you can enjoy some quality rest if you hire a property manager who can help out on the landlord front. You don’t have to do it all alone since a dependable third party will carry some of the load and give you peace of mind.
Some rental property owners balk at paying a percentage of rental income to hire a third party. But paying a relatively small sum monthly can be a smart move for your real estate investment.
Consider these five benefits of outsourcing property management to an expert service provider.
- Get Help Finding Tenants
A good property manager will help you find good tenants. Going with your gut on some things might work, but finding the right people to occupy your units requires a process. Property managers know how to screen tenants to find the right fit. They do so by, among other things, conducting criminal record tests, requesting proof of income, asking for landlord reference letters, and running credit score checks.
By launching screening procedures, property managers can increase the odds of finding quality tenants who stick around.
They can also do their job without violating any laws. If you take it upon yourself to find tenants, there’s a chance you might reject someone on illegal grounds. The last thing you need is to open yourself up to penalties. A property manager can screen within the bounds of the law.
- Get Help With Property Upkeep
Buying a rental property doesn’t just mean finding quality tenants. It also means proper upkeep. If maintenance and repairs are an afterthought, the tenants you want to keep around will head for the exits at the end of their leases. That’s one way to stop the steady flow of passive income.
Failure to take good care of your property can also hurt you in terms of property value. Your rental property won’t achieve full potential on the property appreciation front if it’s not well cared for. So, you have to be proactive when it comes to property upkeep.
Having to do everything independently can get tedious. But if you retain the services of a property management firm, the service provider can coordinate maintenance and repairs so nothing falls through the cracks.
That’s one reason to prioritize finding a company in your neck of the woods. If you have a property in Round Rock, for example, hire a property management firm serving Ground Rock, Texas, property owners. Choosing a property manager that’s too far away can result in delays and inefficient service.
- Get Help Setting the Rent
While you can select whatever rent amount you want, it pays to be strategic to achieve good results. You need to know the state of the rental market in your area, how much properties like yours go for, what amenities tenants want or need, and other things.
If you’re not aware of all these particulars, you run the risk of charging too much or too little. That’s a mistake either way. Hiring a property manager will help you avoid mistakes. While the property management firm can’t force your hand, it can arm you with information so you can make a good decision. Charging too little will unnecessarily rob you of rental income, while charging too much may chase away good tenants.
- Get Help Handling Tenant Relations
If you’re a rental property owner, your primary assets are your tenants. Without them, there’s no investment to speak of. By paying rent on time every month, tenants are the ones who fund your passive income goals and generational wealth objectives. While some tenants might complain about anything and everything, it’s worth doing what you can to meet their needs. That’s especially the case if you have good tenants who never cause you trouble. It’s cheaper, after all, to hold on to good tenants than to see them leave and have to replace them.
When you retain the services of a property management firm, your tenants will be able to contact the service provider for whatever they want. If your tenants have problems that need fixing, want to know how long maintenance work on the property will take, or have any other questions, they can contact the property manager. You won’t have to be involved in the day-to-day minutiae of running a rental property.
- Get Help Marketing Vacant Units
A property manager can also help you fill vacancies sooner rather than later. While their efforts in screening applicants will bring in quality tenants, sometimes good tenants will move on. They won’t always renew their leases. When this happens, you’ll want to fill vacancies quickly. A property manager will understand how to market your property to find the target demographic interested in properties like yours. Filling units fast means your stream of rental income won’t run dry, so it’s worth hiring a service provider who can help protect your investment.
Hiring a good property manager can be a game-changer if you want to succeed as an investment property owner. Getting help with finding tenants, taking care of your property, and setting rent will set you up for success.
