How Using a Property Manager Maximizes Value
“You have to spend money to make money.”
This is something we’ve all heard at one point or another. While not always the case, it does hold true for those with rental property portfolios. For landlords, spending money in the right way can make their property portfolio perform better and get them more money and net worth. One of the easiest ways to do this is to employ a local property management company.
There are numerous property management benefits that make spending the money to hire a company more than worth the investment. This is true for anyone renting their properties, from those just becoming a landlord to people with an expansive portfolio. To give you some ideas as to how this could benefit you, here are some important property management perks:
Property Managers Understand the Legal Side of Things
Every state has laws regarding what rights and responsibilities tenants and landlords have. Cities and municipalities can further restrict things. Property managers know what the rules are locally and how to stay within their boundaries. As a landlord, you’ll have to do a lot of research to ensure you remain on the right side of the law. By turning things over to a professional, you’ll ensure that you have much better chance of coming out on top if something legal occurs.
Vet Potential Tenants
Perhaps the biggest risk for a landlord is renting to the wrong person. In the best-case scenario, terrible tenants might fail to pay and have to be evicted. In the worst-case scenario, they can damage your property and jeopardize the safety of others. The question for property owners is how to avoid these tenants and the loss of money they may potentially cause.
Most landlords who represent themselves are stuck with nothing more than their gut feelings, but an experienced property management company will have their vetting process perfected. They know how to spot tenants who are unlikely to pay their rent on time or tend not to care for the property. They determine this through the use of background checks, credit checks, employment references, and personal references.
Bring in New Renters Quickly
A major benefit of using a property manager is that they have all of their processes streamlined, which allows them to operate much faster than a landlord going it alone. Because they already know the market well, they can easily handle the details and advertising the property in a short time, rather than spending days researching and creating listings. They contract with companies that run background checks and other verifications so they can complete the work rapidly and at a lower cost to you. This translates into shorter periods of vacancy and more income for you.
Property Managers Collect the Rent
There’s a lot that can go wrong when the landlord collects the rent directly. Tenants can feel as though they’re developing a personal relationship with the owner and attempt to take advantage of this. There’s also the possibility that money will be misplaced, or the tenant will claim to have handed over more money than they did. A property management perk is that they handle this for you. Many companies use online payment systems which prevent any in-person interaction from occurring and eliminate the possibility of money being lost. Even when tenants are allowed to pay in cash, having a middleman means there’s less of a chance that the tenant will ask for special treatment.
Access to Cheaper Contractors
Arizona property management companies will usually have a vetted stable of contractors that they work with. Because these companies send regular, dependable work to contractors, the workers are usually open to negotiating reduced rates. This means that if you work with property management in Tucson, you can get the maintenance and repairs for your property at a lower cost. Lower than you could negotiate on your own, while also being assured that the work will meet or exceed your standards.
Property Managers Field Requests
The more properties you own and the more units you have, the more your phone will be ringing. This is often the most stressful aspect of becoming a landlord. These calls can throw your entire day off and leave you scrambling to find the right people to fix problems with rentals. It also works the other way around, as sometimes you’re the one calling the tenants. It’s far easier to allow a Tucson property management company to handle this for you.
Know How to Increase the Value of Your Property
Property management companies know exactly what renters are looking for. This means they know changes you can make that will allow you to charge more in rent while keeping long-term tenants on your rental property. The right company will do more than keep your property running and in good shape, they’ll plan to improve your return on investment every year. Due to their professional experience, they can identify which improvements should see the best return on investment and help you create a plan.
Help Grow Your Property Portfolio
While not all property management companies offer this service, some do—so it’s important to inquire. Experienced property management companies who understand the local real estate market can easily identify the right properties for you to acquire. If your goal isn’t just to rent the property you currently own but to also expand your business, working with a property management company can help ensure the best results.
If you have a rental property or properties in Arizona, be sure to get in contact with Bancroft & Associates. We’re experts at maximizing income and expanding rental portfolios. We look forward to helping you with your next rental property in Tucson.