About 77% of rental unit properties are owned by mom and pop landlords. This isn’t surprising as owning rental property is a smart way of generating additional monthly income while also having a long-term real estate investment plan.
There is a lot of work that goes into property ownership, though. Unfortunately, many people are not prepared for the amount of work and time required for effective management. This is where hiring a realty management team becomes a smart idea.
Consider these five benefits when deciding if hiring a manager is right for your real estate business.
1. Better Tenant Screening
The key to having fewer vacancies is to place high-quality tenants in your rental properties. To do this, you need a thorough and consistent tenant screening process. An experienced realty manager knows the red flags to look for.
An applicant can look qualified on paper, but your realty manager will have the ability to run their background check and credit report. They can also call references to determine their rental history.
2. Rent Collection Management
One of the best ways to generate consistent monthly cash flow is by collecting your tenant’s rent. On-time rental payments become easier when you have a real estate team helping you manage your tenants. In addition, established realtors can offer your tenants online payments, making it fast and simple for your tenants to make payments.
The easier it is for your tenants to make payments, the more likely they are going to. Online payments also reduce the time you spend driving around collecting payments in person. This reduces your management overhead.
3. Better Maintenance
Established property managers have a network of contractors that they know well and regularly work with. You can leverage these relationships to ensure your property is well maintained. The better you take care of your property, the higher its retained value is.
You may also find that your repair and maintenance costs are reduced. Some managers negotiate a lower rate for an exclusive contract providing services for all of the properties that the manager oversees.
4. Fewer Legal Issues
You must comply with the state and federal laws that govern landlords and rental properties. Working on your own, you need to know and understand all of these laws. This can expose you to several types of legal issues.
- Tenant screening
- Tenant evictions
- Signing and terminating leases
- Unit inspections
- Property conditions and safety
- Collection and handling of rent and security deposits.
Your real estate team can handle all of these tasks, reducing the legal liability that you personally face. In some circumstances, such as evictions, your manager can file in court on your behalf.
5. Peace of Mind
When you hire an experienced realty management service, you can enjoy greater peace of mind. Feel less stress as you let your management team handle the day-to-day tasks. You can use your newfound free time to pursue other investments or hobbies.
Perhaps you travel more, as you are no longer tied to the location of your property. If there is an issue, your local real estate manager can swing by to lay eyes on your real estate while you are anywhere else in the world.
Hire Realty Management Today
As you can see, several benefits come with hiring a realty management team. Through more hands-on management, you can enjoy more consistent cash flow and reduced operating costs. With careful and dedicated management, you can make your real estate investment a success.
Check out the real estate section of our blog for more helpful articles on managing your properties.