Is it your dream to own an investment property, bring in rental income, and monetize the asset for a juicy premium down the road?
Diversifying your investment strategy makes sense. In addition to buying stocks, index funds, and other investment vehicles, you should consider purchasing a rental property. Of course, you need the financial wherewithal to go that route, so it’s not the right strategy for everyone.
But if you decide to buy an investment property, you must safeguard your investment. Some people aren’t cut out to be landlords, as the responsibility can overwhelm them and turn investment property ownership into a nightmare. Fortunately, there’s a solution to this problem.
Consider these seven reasons to hire a property management firm for your rental property.
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1. Get Help Where You Are
While hiring a good property management firm makes sense, you must find one close to your rental property. It’s about seeking service from a local service provider.
If you own a single-family home, duplex, or apartment building in Fort Worth, TX, hire a Fort Worth property management firm. And if you own an investment property in New York City, don’t look outside the Big Apple for the help you need. Find a service provider where your property is located.
2. Get Help Finding Quality Tenants
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Some rental property owners hate managing their properties because of the tenancy factor. If you buy an investment property for rental income every month, you’ll be at your wit’s end if you have tenants who think paying rent is an option rather than a requirement. You can lessen the risks of getting bad tenants by hiring a property manager experienced at screening tenants.
A property manager will conduct criminal record checks, credit score checks, employment history checks, rental history checks, and other checks to find you the most suitable tenants for your property. Trying to find good tenants independently will be like rolling dice while hoping for the best — and you don’t want to gamble with your investment.
3. Get Help Taking Care of Your Rental Property
While some investment property owners prefer doing property maintenance themselves, others realize the need for a service provider specializing in maintenance and repairs. If you want good tenants to stick around, it’s vital to maintain the rental property. Otherwise, they may vacate at the end of their rental agreements rather than renew.
Taking care of your investment property will also ensure it’s in great shape to get top dollar whenever you decide to sell it. Failing to do proper maintenance and timely repairs will cost you more in the long run. Investing in a property manager is an investment in your rental property.
4. Get Help Advertising Vacancies
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When tenants leave, you must replace them. But it’s not as easy as it might appear. You must write ads, place them in the right publications and websites, and conduct showings.
It’s a process best left to a property management firm that can help you fill vacancies sooner rather than later. You won’t get rental income from empty units, so getting help to find good tenants is a must.
5. Get Help Setting Rental Income
A property management firm knows the local rental market and can advise you if you’re unsure how much rent to request. You can also get recommendations for updates to your units.
A property management firm will know what amenities and features quality tenants in the area want. Going with these recommendations may even allow you to charge more rent. While you don’t have to go with the recommendations, the information can help you make informed choices.
6. Get Help Handling Difficult Tenants
While a property manager will increase your odds of getting good tenants and avoiding bad ones, that doesn’t mean you’ll be immune to questionable tenants. But a good property manager won’t only have a process to screen tenants. It’ll also handle problems should any arise.
If you have a tenant who is consistently late with rent or has stopped paying rent altogether, the property manager will step in to remedy the situation. The service provider will work with the tenant to get them back on track.
If the rent problem persists, the property manager can initiate an eviction process to eliminate the problem. The eviction process can be a drawn-out affair that takes up much of your time — unless you have a property manager to handle things for you.
7. Get Help Providing Customer Service
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After investing in finding good tenants, you don’t want to waste that investment by offering shoddy customer service. Tenants need a point of contact should something go wrong.
If you serve as the landlord, you’ll get calls at inconvenient times and be tethered to your rental property. But a property management firm will offer the customer service your tenants deserve. Tenants will have a contact number to call someone with questions or concerns.
You may or may not have the time to provide customer service independently. But considering how vital your tenants are to your real estate investment plan, a property manager makes sense. Tenants won’t have to wait until you have the time to respond to their queries. Someone from the property management firm will respond in a timely manner to provide the help needed.
Satisfied tenants are more likely to renew rental agreements, which means rental income will continue flowing into your coffers. If tenants keep leaving after their leases are up, you’ll have to spend more time and money to find new tenants.
These are some reasons to consider hiring a property management firm for your rental asset. Doing it independently is an option, but it’ll keep you tethered to your investment. When hiring a reliable third party for help, you’ll protect your investment and better serve your tenants.
A property manager isn’t an expense — it’s an investment. It’ll cost a percentage of rental income. But the value you’ll get will justify investing in a third party. It’s something to consider if you want to take your rental property investment seriously.
