A reliable management company adds to the quality of your life. You can enjoy better cash flow since the management company can help with avoiding vacancies. Freeing up your time can help you move on to your next goal without worrying about repairs or problem tenants.
Time is money, and by finding the right property manager, you can save time, and focus on business growth. A typical property management service costs a percentage (8%-12%) of the rental payment along with a fixed-fee. If you find yourself in or near the Dallas/Fort-Worth, you can inquire about property management fees from a local company to get your property taken care of.
Benefit #1: Reduced Vacancy Rates
Let’s be clear. An unoccupied property doesn’t generate any income. Instead, a vacant property requires more care as you have to spend on maintenance, cleaning, and advertising.
Working with a property management firm reduces your chance of having a vacant property. Experienced managers know how to get a home rented and how to keep it occupied for extended periods. Potential tenants often connect directly with property management companies to find better rental houses. So, it’s a double-edged sword. Management firms cater both to the needs of the landlords and tenants.
Benefit #2: Protect Yourself Against Scams
Consistent cash flow is impossible without timely rent collections. You want the rent to be paid on time. That’s how you pay the mortgage and other expenses related to owning that property.
Unfortunately, tenants may not understand this aspect. They may be facing genuine hardships, or they might want to take benefit of your situation. By using a property management firm, you are shielding yourself against scams and late rental payments. Most companies have a professional setup in place to ensure the collection of rent on time.
Benefit #3: Avoid Another Full-Time Job
You are reading this article. Chances are that renting properties is not your only passion. You’re getting started with your rental business while taking care of a full-time job.
The idea is to generate passive income through real estate investments. It doesn’t remain passive income when the property is located hours away from your residence, and you need to pay a visit for small repairs. Tenants are going to call YOU if the home is not functional, and it can happen many times in a month. You can avoid this additional workload by collaborating with an experienced manager.
Remember the fixed-fee that you’re supposed to pay each month. That money is used to cover for small repairs required on a daily basis. Most companies have their team of contractors, which results in a discounted maintenance service.
Benefit #4: Get Help with Legal Matters
When you decide to be a landlord, it’s extremely important to familiarize yourself with local laws and regulations. Please consult a real estate attorney and make sure you understand everything from tenancy laws to evictions. A property management firm can also assist you with this task. With their experience, they can help you avoid common issues that appear now and then.
At some point in your career, you’ll encounter tenants who don’t pay rent, damage your property, and force you to evict them. It’s going to happen, but an experienced manager can reduce such chances, or at least help you manage the process.
Bonus: Property management fees are deductible. That means using such services can result in a reduced tax bill, and more sleep!
Alex Capozzolo is the owner of the Brotherly Love Real Estate blog and a content writer for the real estate industry. We buy houses in Philadelphia, PA. Our focus is on helping people through one of the most important investment decisions of their lifetime by seamlessly providing fast, honest, and professional real estate services.