Advantage of Property Management Services: 8 Benefits
Managing rental properties comes with a host of challenges and responsibilities that can quickly turn into a time-consuming and stressful endeavor. In this article we’ll cover eight advantages of property management services for your rental property.
Investing in rental properties can be a lucrative venture, providing a steady source of income and long-term wealth accumulation. That only happens if it’s done well though. To address this concern, many landlords opt to hire professional property management companies. These are a few advantages of hiring a property manager:
- Finding quality and long-term tenants
- Responding to tenants and resolving concerns
- Avoiding legal issues and expensive lawsuits
- Marketing to ensure fewer vacancy periods
- Rent collecting in an efficient, optimized, and timely manner
- Managing evictions
- Coordinating maintenance and adding value to rental properties
- Tax savings and organization
Together, let’s explore these advantages of property management services in more depth. We’ll draw insights from real examples and highlight the benefits.
Advantages of property management services for your rental property
1. Finding quality and long-term tenants
One of the primary advantages of enlisting the services of a property management company is their ability to attract and retain higher quality tenants.
With almost 34.5% of the population renting their home, there’s a lot of potential tenants to choose from. The screening process for potential tenants is crucial in ensuring the long-term success of a rental property. Property management providers possess the experience and expertise to conduct thorough background checks, credit history analysis, and reference verification to identify reliable and responsible tenants. They bring expertise in tenant screenings to delve into potential tenants’ backgrounds, swiftly identifying red flags such as rental scams, late payments, and poor credit history.
The meticulous screening process ensures that only trustworthy and responsible tenants are selected. This minimizes the risk of future problems and preserves the value of your rental investment.
By carefully selecting tenants, property managers can significantly reduce the risk of:
- late rent payments
- property damage
- legal disputes
They can ensure they match your rental property with reliable tenants, ones that are likely to stay for a longer period of time.
Finding the right tenants is half the battle though. It’s also your property manager’s responsibility to maintain a good relationship with tenants over time. This advantage of rental property management can save the owner tons of time.
2. Responding to tenants and resolving concerns
Once a property manager has found the ideal tenants for your property, they must take on the role of being the main point of contact for the renter. This eliminates late-night emergencies and headaches for you, the landlord.
Right now, about 56% of all renters in the US plan to move to another rental in the next year. It’s your property manager’s responsibility to ensure your renter isn’t one of them. Property managers help make the management of tenants simple, as the tenants have one reliable main point of contact. Property managers are experts at building and maintaining positive relationships.
Property management providers must manage the rental and tenant. When property managers conduct routine maintenance and address issues promptly, it helps keep tenants satisfied and encourages longer-term leases. It helps that through their extensive network of long-established connections with maintenance workers, contractors, and suppliers, your property manager can ensure swift and reliable repairs or replacements for any broken items.
Their ability to oversee maintenance projects, while keeping you well informed through regular status updates, is essential. It allows you to remain hands-off while ensuring your property is well-maintained.
3. Avoiding legal issues and expensive lawsuits
Navigating the complex landscape of landlord-tenant laws and regulations can be challenging for property owners. There are a lot of laws! Here are just a few in Oklahoma:
Property management companies are very well-versed in local, state, and federal laws governing rental properties. They ensure compliance with these regulations. By adhering to legal requirements, property managers help landlords avoid instances of:
- costly lawsuits
- discrimination claims
- improper rental collection
- allegations of unsafe living conditions
This aspect of professional property management provides peace of mind to landlords and safeguards their financial interests.
4. Marketing to ensure fewer vacancy periods
The longer a rental property remains vacant, the greater the financial loss for landlords. By reducing vacancy periods, property management companies contribute to maximizing the landlord’s profits.
But how do you reach potential tenants?
Property management companies excel in minimizing vacancy periods by employing effective marketing strategies. They’re also adept at determining optimal rental rates, and expertly negotiating with potential tenants. Here are a few marketing strategies property managers may use to advertise available homes. This includes advertising homes available for rent on their website.
Some go as far as having a list of quality tenants already lined up.
Every day your rental property doesn’t have someone living in it is a day you’re missing out on potential income. This is one of the advantages of property management.
5. Rent collecting in an efficient, optimized, and timely manner
Efficient rent collection is paramount to the financial success of a rental property. Property managers act as intermediaries between landlords and tenants. Their responsibilities include ensuring timely rent payments and handling late fee penalties if necessary.
This process makes it effortless for the landlord to get paid rent. They don’t have to lift a finger to paid month after month by their tenants.
Timely and efficient rent collections isn’t the end of a property manager’s rent responsibilities. Setting the right rental rate is crucial in attracting tenants and optimizing rental income.
As of July 2022, the average median gross rent in the US was $1,034. Based on your location, property quality, and more, do you know how much rent you could realistically make off your rental property?
Fortunately, property management companies possess comprehensive knowledge of the local real estate market and current rent trends. Their expertise enables them to set competitive rental rates for your rental property that strike a balance between maximizing income and minimizing vacancy rates. Landlords benefit from a property management data-driven approach to rental rate determination.
Curious how much rent your home could go for? Sign up today to get your free rental analysis.
6. Managing evictions
Evicting tenants can be a daunting and stressful process, especially when faced with legal complexities and challenging individuals.
In cases of non-compliance, property management companies have the expertise to play a crucial role in handling evictions with efficiency. For starters, they can handle the eviction process in compliance with legal requirements. This protects the landlord’s interests and mitigates potential losses.
Furthermore, eviction situations are often emotionally charged, as tenants may be facing difficult circumstances. Despite these challenges, property managers can prioritize the business and protect the landlord’s interests. Property management often shield landlords from potential direct confrontations and threats. Having a third party involved also ensures that landlords do not succumb to potential pressure or intimidation from tenants. Property management services provide a crucial layer of protection for landlords, their properties, and their livelihoods.
With property management, landlords can rest assured that every aspect of the eviction is being handled competently, alleviating stress. Property managers have extensive experience in dealing with diverse tenant situations. This allows them to anticipate challenges and handle them effectively. Landlords can rest assured the eviction will proceed in a timely manner, allowing the property manager to move forward with finding new tenants and their other property management responsibilities.
7. Coordinating maintenance and adding value to rental properties
Property management companies help maintain the overall condition of rental properties through preventive maintenance and prompt repairs. This proactive approach prevents small problems from escalating into larger breakdowns that would require costly repairs or replacements, ultimately saving landlords money.
Furthermore, regular maintenance and upgrades add value to the property and enhance its appeal to potential tenants, resulting in higher rental rates and increased long-term returns.
Working with a property management team with decades of experience can be helpful! Often times, property managers that have been in the industry for a while have likely worked with several maintenance companies in the area. They know which companies can be trusted to do good work and charge a fair price.
When repairs are needed, it’s a property manager’s responsibility to reach out and shop local repair services to collect bids. The landlord can skip that hassle and be given the best bid.
Tip: At Sunstone Property Management, unlike other property management companies, we don’t upcharge on maintenance.
8. Tax savings
Your rental property is a business. And with any business comes taxes.
Professional property managers are highly proficient at record keeping. Afterall, it’s a crucial aspect of managing rental properties. With a deep understanding of the importance of proper documentation, property managers can ensure that during tax time, you’re supported with clear and organized records.
From rental expenses, rent payments, maintenance costs, and property-related transactions, property managers maintain accurate and detailed records.
When considering property mangers, you’ll want to work with one that provides you an easy-to-file 1099 document. This makes financial reporting and tax-time filing a seamless and stress-free process for property owners!
Personal Advantages
We’ve now covered the major advantages of working with a property manager. There are a few additional benefits that some landlords find.
With property management companies taking care of tenants and day-to-day operations, landlords can regain control of their time and focus on other personal and professional pursuits.
Let’s face it, many landlords have full-time careers and families. The delegation of things like:
- marketing
- administrative tasks
- maintenance
- tenant management
- rent collection
- and more
to a management company significantly reduces stress and offers landlords more time freedom.
With a property manager, many landlords face far less stress and enjoy more freedom. This personal advantage allows landlords to enjoy a better work-life balance and increased overall satisfaction.
Investing in rental properties can be highly rewarding, but managing them and tenants efficiently requires expertise, time, and effort. Hiring a property management company offers numerous advantages that add value to rental property investments while reducing stress for landlords.
From tenant screening to legal compliance, rent collection, and maintenance, property managers play a crucial role in maximizing returns and providing peace of mind to landlords. Embracing professional property management can be a wise decision. This is especially true for those seeking to optimize their rental property investments and enjoy the personal benefits of reduced responsibilities and increased freedom.
Looking for a reliable, affordable, and communicative property management team in Tulsa, Oklahoma? Look no further as Sunstone Property Management has over 25+ years of property manager experience. We have free annual walkthroughs, no renewal fees, and no upcharge on maintenance. We’re here to take care of you and your rental property investments on your behalf