Are you an absentee landlord? Do you need someone to manage your properties for you? Perhaps you have multiple rental properties in your portfolio but lack the time or expertise to maintain the properties and deal with individual tenants? Or you are solely interested in owning rental properties and earning profit from them; what you need is a property management company.
Property management refers to a third-party contractor’s daily maintenance of residential, commercial, or industrial real estate properties. It is the desire of property owners to be represented by well-trained property managers who can think like them and take pride in resident satisfaction.
Today, we will discuss what you need to know about effective property management and how to make the most of your rental properties.
Property Management Company
A property management company takes responsibility for day-to-day repairs and ongoing maintenance, security, and upkeep of properties.
Their main roles are to manage routine tasks delegated to them by the owners and preserve the value of the properties they manage while generating income.
The duties of a property management company typically involve the following:
- Straining possible tenants.
- Drafting, signing, and renewing leases and rental agreements on behalf of property owners.
- Rent collection.
- Maintaining properties, including landscaping and snow removal.
- Making arrangements for needed repairs to properties.
- Drawing up and heeding the budgets for property maintenance.
- Complying with state and local landlord-tenant laws and regulations.
Effective Property Management
What does effective property management entail? How can you make the most of your rental properties? Consider the following important points:
- Licensing – Check if the property management company is properly licensed. Most states require property management companies to be licensed by the local real estate board, so you need to make sure that the hire is properly licensed to manage your property. For instance, holding a real estate broker’s license allows the property management company to place a real estate board lockbox on a property’s door so that other licensed agents can show the property.
- Marketing – A good marketing strategy is crucial when sourcing tenants for your property. Consider the kind of property you want to market and formulate a system that caters specifically to this rental market segment. For example, your strategy for marketing a commercial property should differ significantly from that of a luxury vacation rental.
- Maintenance and Repairs – You have to ensure that the property does not deteriorate and depreciate. Maintenance and repairs must be an ongoing system. You have to draft a plan on how to respond to safety, repairs, and maintenance requests from tenants and investors. You need a resource pool of experienced and reliable suppliers such as electricians, landscapers, and plumbers.
Effective property management – a vast network of contractors, repair professionals, real estate attorneys, and other service providers. The property manager must be licensed and able to market the properties effectively and compare prices and services regularly in the market.