What Is A Property Management Company?
A property management company is a group of professionals in managing properties with all terms. They have in-depth knowledge about the property situation and laws. Furthermore, they sell this service to landlords and homeowners that have a property portfolio.
What they do is:
- Deal directly with prospects and tenants
- Saving you time and worry over marketing your rentals
- Collecting rent, handling maintenance and repair issues
- Responding to tenant complaints, and even pursuing evictions.
But what makes a property management company better than the other?
Usually, almost if not all property management companies do the list above, it is the service they provide. A beneficial property management company is when they manage to increase the income that comes from the properties they manage.
Landlords and homeowners don’t want only their property to be managed, they desire to see their income from their properties is increasing over the years. And that what makes a property management company better than the other.
In this post, we will discuss the benefits of hiring a property management company, and we will discuss this point (increasing the property income).
So if you are a landlord, this post is definitely for you.
What are the benefits of hiring a Property Management Company?
These are the general main benefits when you hire a property manager to manage out your properties. But the most important point is will this company increase your property income by time? Well, let’s see how can it do that.
1. Removing the headaches from landlords
Most landlords and homeowners have no time to manage their property portfolio. Managing a property requires many details and understanding on how to keep the property neat and desired. Doing so is not that easy.
Furthermore, you should have many contacts for cleaning, maintenance, and repairs. In case someone was busy, you have an alternative.
But if someone else is handling the daily management of your rental property and tenants, you’ll have fewer complications and commitments to worry about.
So, as a landlord, more time and stress-free income from your property, are key to your quality of life, using a property management company can be a great asset.
2. Looking out for tenants
Handling tenants and guests(guests as short term rentals and serviced accommodation), can be a frustrating task. Especially if you have more than 1 property, getting complaints and requests from tenants can be infinite sometimes.
Usually landlords and homeowners have other things to do in their life, sitting with their family for example. For that reason, they hire a property management company to handle their properties from them while enjoying their property income.
Moreover, the main thing here is that property managers know how to pick your right tenants that will bring you the least headache.
Since professional property managers review hundreds (or thousands) of applications annually, their trained eyes are more likely to spot potential red flags in an application. Letting them handle the tenant screening process can improve your chances of finding a reliable renter who pays rent on time, takes care of the property, and more.
3. contacting tenants when they have concerns
In the event that something breaks at your property, driving over to the unit to inspect it yourself is not always convenient or practical. Especially if you have properties in different cities or countries.
Property managers are available at all hours of the day and can arrange for repairs or replacements with service providers.
Another thing to consider, suppose you have a tenant that consistently has complaints, whether it is their noisy neighbors or their pet’s habit of urinating on the lawn, you can rest easy knowing the property manager can handle these matters for you.
4. Increase Your property awareness
Not only landlords have profits from their properties, but also the property management company. Once the property management company handle a property, they charge a percentage of the rent income as an exchange for their service.
Meaning that, the higher is the rent, or the more are bookings on the property, the higher their charge will be. So it is a win-win situation.
For that reason, property management companies increase the awareness of the property to get higher rent and more bookings.
For instance, Luke Capital Group has a complete marketing department that is responsible for running marketing campaigns on the properties to get more bookings.
Property managers are skilled at marketing rentals, including writing rental ads, taking high-quality photos, and hosting open houses. Furthermore, they have local real estate knowledge and can assist you with setting a competitive rent price.
5. ensure payments are scheduled on time
Due to the fact that property management companies deduct their fees from the monthly rent, they are motivated to keep those payments flowing.
Receiving rent payments on time requires consistent rent collection, and a property management company will enforce lease policies in case payments aren’t made.
A property manager will know how to handle tenants who are consistently late with their rent (or not paying rent at all), including issuing an eviction notice if needed.
Landlords often don’t have the time to deal with such cases, and reaching out to their tenants to ask for the rent. Instead, they hire a property manager that knows how to handle this matter professionally.
6. avoid potential legal issues regarding the property
A serious percentage of landlords doesn’t have complete knowledge of property law. And property law is fundamental in managing the property.
A property management company can help you with tasks like evictions, signing and terminating leases, and handling rent and security deposits if you are not comfortable handling them yourself.
7. Reduce the cost of maintenance and repairs
Usually property management companies have vendor lists that covers everything in terms of property handling. All activities that a property should need, property managers can do it efficiently.
Being a landlord is a very frustrating thing, and especially when it comes to property maintenance or repairs.
Using a property management company may provide discounts for maintenance services if the property managers hire a regular service provider or maintain the property in-house.
They can perform regular inspections and find problems before they become larger challenges, which will lead to fewer emergency repair bills.
Bonus benefit by luke capital group
Luke Capital Group is spcialised only in Short Term Rentals & Serviced Accommodation.
We manage properties for landlords as holiday homes for tourism and business travellers purposes. By us handling the property as short term rental, we are able to increase its profit by at least 2.5x compared to leasing the property as long term contracts.
In addition, intense marketing is daily done to all properties managed, making sure it always have maximum bookings throughout the year.
To know how much you can make out of your property, check our free property analysis service.