Some landlords elect to work with a property management company to help oversee their properties. Many real estate investors advise property owners to hire a property manager. A good property manager is worth their weight in gold, providing a number of advantages that can make renting out properties less difficult and more efficient.
● Higher Quality Tenants – Bad tenants can be difficult to handle, especially if you have to evict them. It’s better to not let them into your property in the first place. Property managers can conduct a thorough tenant screening process to find only reliable tenants who pay on time. An experienced property management company has seen hundreds of applications, which gives them the experience to spot any warning signs early.
● Fewer Legal Problems – Lacking the knowledge of landlord-tenant laws can leave you open to lawsuits. It only takes one bad tenant to cause a legal headache. Good property management companies are equipped with knowledge on different landlord-tenant laws. Managers can handle different areas of the law, including evictions, inspections, and rent collection. A relationship with a property management firm also saves money in the long run by preventing costly legal troubles.
● Cost-Effective Maintenance – Proper maintenance of your property helps to keep its value high and make your tenants happy. Hiring a management firm gives you access to their in-house maintenance staff, as well as their network of contractors. This gives you sizable discounts when repairs are needed compared to hiring contractors yourself. The managers’ knowledge of the contractors and issues gives them a better eye for supervising the repair work.
● Shorter Vacancy Periods – Landlords naturally want short vacancy periods to avoid losing income from rent. Managing firms have an intimate knowledge of how to fill those vacancies and attract more tenants. They can suggest and oversee maintenance to attract residents and bring in more revenue. Managers also have access to rental rate tools and knowledge of the local market to help determine optimal rent rates. Finally, an experienced company knows how to market your properties and reach a large pool of candidates in a small timeframe.
● Better Tenant Retention – The turnover process involves several processes (e.g. cleaning, changing the locks, repairs, marketing, and screening). This can take up a significant amount of time and money. A good firm can avoid all this entirely. Successful property management in Vaughan and nearby areas have a time-tested tenant retention policy that keeps tenants staying for a long time. These policies can keep tenants happier, which entices them to rent for the long-term.
● Tighter Rent Collection Processes – To maintain consistent cash flow, it’s important to collect rent on time. Managers are experts at getting tenants to pay on time without getting bogged down listening to excuses. Hiring a manager also provides a buffer between you and your tenants; tenants are more likely to pay rents promptly to managers, who are seen as doing a job.
● Higher Property Values – Managers are in a position to catch any maintenance issues early on. Experienced management firms know that preventive maintenance is key to increasing the value of a property. A property manager can provide regular inspections, maintenance schedules, and detailed documentation to help you keep up. They also offer feedback on any upgrades tenants may find more attractive.