As a real estate investor, operating your own business can take up much of your time and effort. A landlord can lessen the burden, but hiring an experienced property management company is a more effective way to manage investment properties and earn a passive income. They provide a variety of services to facilitate an affordable housing program and more rental properties.
This article aims to give an overview of the roles of a property management firm as well as the benefits that they provide to rental property owners.
The Management Team: An Overview
Property management companies work with a group of professional team players to ensure the best services to the property owner. Typically, the team is composed of the following:
- Property Managers – responsible for contract services, handles day-to-day relations, account payables and receivables, deal with service contracts, work order management, and event planning.
- Accounting Team – works on full-cycle accounting, vendor inquiries, account payables and receivables, and financial statements.
- Maintenance Engineer – take charge of property maintenance including upkeep, repairs, and maintenance requests from quality tenants.
What Property Company Offers?
Hiring property management services add value to the rental business. Here are some of the essential things that a good property management company can do:
- Evaluate the Property
This involves gathering data from the local rental market or local apartment association to determine an accurate rental price. Analysis using photos can be included to give improvement recommendations. The information gathered maximizes the monthly rent collection while providing an optimum ROI.
- Market the Property
Preparing the rental home, taking professional photos, creating tailored advertising materials, and promoting the listing is done by the property management firms. This can either be done through free or paid websites, signages, or flyers.
- Serve as Contact
A good property manager serves as the exclusive point of contact for concerns. This usually involves a rental flat fee, property inquiries, and tours of potential tenants. It is also their job to collect the required application fees and to put together rental applications based on the Fair Housing Laws.
- Screen Tenants
A background check verifies the tenant’s identity, income, and rental history. Prospective tenants must be graded based on the criteria pre-defined by the owner and the professional property managers. The tenant screening process aims to find a qualified tenant who will adhere to the lease documents, pay rent on time, and take good care of the property.
- Facilitate Tenant Move-In and Move-Out
The management firm is in charge of drawing up the leasing fee and coordinating move-in schedules of the new tenant to ensure the proper execution of the property management agreement. Tenants must sign a tenant turnover report to verify the property’s condition as well as the first month’s rent and security deposit.
Meanwhile, tenant move-out is also facilitated by the property manager. They inspect units and fill out reports regarding the property’s condition upon move-out. This gives an overview of the estimated damages that need repair or upgrade before putting the property back on the market.
- Collect Rental Fee
Hiring a property management team lessens the burden of collecting rent, receiving rent through various options, sending out notices, and enforcing late payment fees. All these tasks are based on the agreed conditions between the owner and the tenant, as well as compliance with the laws.
- Handle Evictions
Evictions usually involve filing relevant documents to initiate and complete unlawful detainer actions. Many property managers will represent the owner in court and coordinate with law enforcement to remove the tenant and their possessions from the unit.
- Attend to Legal Matters
The resident manager stays on top of the legal matters related to tenancy. This will ease the weight on the property’s owner when it comes to legal compliance. Also, the manager must understand and abide by the latest legislation that applies to rental homes and maintaining these properties.
- Perform Inspections
Periodic inspections of the property must be done by a professional property manager on a predefined schedule. This will give a detailed property condition report which normally includes safety hazards, lease violations, code violations, and needed repairs.
- Provide Financial Transactions
Handling finances and keeping detailed documentation of all the expenses is the task of the property manager. Doing so will provide structured cash reports which will be used for tax credits and documentations and will be sent out to the owner for review.
- Maintain the Property
The property management company will oversee the maintenance, repair, and remodeling of the units. They will hire an independent contractor who will maintain the indoor and outdoor areas, provide recommendations on renovations, prepare lower maintenance costs, and oversee the entire project.
Get Help From the Experts
Acquiring multiple rental properties and hiring employees can be troublesome. To address the stress brought about by real estate investing, it is highly recommended that you hire a property management team to collect rent and perform other tasks.
The scope of work of certified property managers may vary depending on the management fee. It is best to start a conversation with a good management company to know more about their services. At First Commercial Association Services, we will help you build quality communities. Contact us to know more about our services.