One of the biggest decisions a landlord will make is whether or not they want to use a property management company. Especially if you’re a first-time landlord, you may have trouble deciding whether you want to manage your property yourself, or may be unsure if using a property management company is worth the investment. While the best course of action always comes down to the individual, doing everything yourself will take up a lot of time and may cause issues that you haven’t yet considered. Here are all the benefits of using a property management company.
More Effective Marketing
Good property management companies have an excellent knowledge of their market and know the best ways to market a rental property. They know the effectiveness of high-quality photography and a well-written property advert, and will have a pool of potential applicants that are just a phone call away.
There is a certain art to marketing property, and simply uploading information to the biggest property portals won’t always produce the best results. Rather than having to learn about property marketing yourself, management companies are well-versed in what works and what doesn’t, allowing them to engage potential tenants straight off the bat.
Increase Your Chances Of High-Quality Tenants
Property management companies have developed screening processes that can help to weed out any unsuitable tenants from the start. By increasing your chances of finding high-quality tenants, you are potentially avoiding a long list of problems throughout the rental process from unpaid rent to damage to the property.
While you can utilise the services of a referencing company yourself, some are definitely better than others. Property management companies have vast experience in referencing and will be confident that the service they use covers all bases. They will also have viewed hundreds if not thousands of tenant applications, and are trained to see any red flags early on. This extra peace of mind can be invaluable when finding a new tenant to live in your property.
Optimise Your Rental Rates
An excellent knowledge of the industry also means that a property management company can help you determine the best rental rates. It can be hard to know what to charge for your property, but getting it wrong can have a detrimental effect on your business.
Price the rent too high and people may be reluctant to apply, potentially leaving you with an empty property. Undervalue it and you may have applicants lining up at the door, but you’ll also be leaving money on the table. With expert help, you can feel confident that you are charging a fair rental price while also getting the most out of your property. Good management companies will review this information every year to make sure it is keeping up with market rent and giving you one less thing to worry about.
Thorough Inventory Service
Property management companies are all too aware of the importance of a clear and thorough property inventory. That’s why the majority will use an inventory service to ensure that it is done to the very highest standard. Disputes about property damage and security deposits can go on for months and can end up being very costly if things don’t go your way. By ensuring that a meticulous inventory is done at the start and end of every tenancy you can be confident that any disputes can be resolved quickly and efficiently.
Provide A Direct Point Of Contact For Your Tenant
The majority of landlords also hold a full-time job in conjunction with letting their property. This means that, even with the best intentions, they may not always have the time to deal with queries quickly and effectively. A dedicated property management service serves as a point of contact for your tenant for dealing with everything from minor repair problems to rent arrears. Their availability and responsiveness will go a long way in improving your tenant’s overall experience and prevent any problems from getting out of hand. It also means that you won’t have to waste any of your precious free time dealing with issues with the tenant or property.
Decrease Tenant Turnover
Through a combination of proper referencing and excellent service, a good property management company can help reduce your tenant turnover. They have the time, knowledge and experience to keep your tenants happy, which is key to retaining them on a long-term basis.
While not every tenant will want to stay in your property for years to come, having longer periods between tenants will significantly cut down on your level of involvement and avoid your property sitting empty for any length of time. It will also save time by cutting down on cleanings and repairs, not to mention marketing, attending viewings and carrying out references.
Rent Is Collected And Monitored Efficiently
Even when you have your own systems in place, taking care of rent collection yourself can be hard to keep on top of. Property management companies have a streamlined process and dedicated client account. These systems will help to identify any problems with payments early on, ensuring that you don’t miss out on any money. If a payment is missed, even if just by one day, the company will reach out to the tenant immediately to try and get the issue resolved. And with the rental payment deposited straight into your account every month, that’s one less thing for you to keep tabs on throughout the lettings process.
Less Stress And More Free Time
One of the major benefits with using a property management company is that it will go a long way in alleviating the heavy workload that comes with letting out your property. Many landlords underestimate just how much time is involved, but by having a company work on your behalf you will be freeing up hours and hours of your time that would have been spent elsewhere. This gives you greater freedom to spend it on other things, whether that’s quality time with family or simply enjoying your downtime.
While most tenancies run fairly smoothly, with property there is always potential to run into problems, some of which can be incredibly costly. Staff are specially trained to deal with all kinds of issues and stay up to date with all the latest property legislations and procedures. That means that when problems do arise, you can feel confident that they will be dealt with properly. That not only saves you time trying to figure things out for yourself, but will also make the whole process much less stressful.
For more information, read our post on outsourcing property management.
Working with a property management company has a long list of benefits that can be instrumental to your success as a landlord. If you’re not sure about having a property company look after everything, most offer tiered services that will allow you some flexibility. For instance, it might be that you just want help with the lettings process but want to take care of the management yourself. On the other end of the spectrum, there are end-to-end services that will allow you to get all the benefits of your rental property with minimal involvement. Ultimately, the choice is up to you as to what approach will suit you best. However, a property management company is well worth considering to help you get the most out of your investment.