For many of us, it’s the dream to develop a truly passive income stream. Owning an income property is a great way to start, but people may not realize just how much work goes into managing your own property. A “passive” income stream can quickly turn into another full-time job if you aren’t careful. Hiring a property management company can help you stay ahead of your property’s needs, find responsible tenants, price your property accordingly, and so much more. 

Determining Rent Based on Market Rates

It’s no secret that the cost of living has been steadily rising over the years, and rent is no different. If you buy a property in an up-and-coming area, you may initially charge a rent that is competitive with the market but quickly falls becomes under-market as the surrounding rents continue to rise. If your property is in an area that is improving or becomes a more desirable location, you need to ensure that your rents are keeping up. 

If you aren’t a real estate professional, pricing your property may seem daunting. However, when you work with a property management company, you can have peace of mind using the best industry practices for finding comparable rental properties. Setting the rent is a delicate balance between remaining desirable to prospective tenants, which means a low vacancy rate, and maintaining your desired profit margins. A property management company can help ensure you find the perfect price point to list your home. 

Collecting Rent

Once you set your rates and find tenants, rent has to be collected every month. If you live nearby, it may seem like a small task to collect rent at the same time every month, but it can quickly become stressful if and when your tenant becomes late on their rent. With a property management company, not only will your tenants have more ways to pay (online, in person, by mail, etc.), you can also rest easy knowing that your tenants are being contacted should their rent ever become late. Beyond that, a property management company will ensure accurate accounting and will work to make sure you get paid on time every month without the extra hassle. 

Marketing and Advertising

These days, almost all prospective tenants go about finding their future homes online. It sounds pretty straightforward, but it can take a bit of planning and expertise to target the right tenants. When you work with a property management company, you can feel confident that they have the industry expertise to hire a professional photographer and create marketing campaigns that will find you a tenant in no time. 

Finding the Right Tenants and Managing Relationships

Landlord and tenant relationships can be especially tricky, but you can avoid many common problems by screening tenants ahead of time. Property management companies have the infrastructure available to handle all background checks, credit reports, employment verification, and more. If a tenant passes the screening process, the management company will also remain their main point of contact for maintenance issues on the property. When you use a property management company, you don’t have to worry about the potential trickiness of your relationship with a tenant. 

Ensuring Your Property Complies with Local, State, and Federal Laws

There are protective laws put in place to ensure fair, safe, and equitable housing. If you aren’t aware of these laws or you aren’t sure of the best way to address issues as they arise, a property management company can be the proactive solution you need to stay ahead of potential issues. Property management companies will be able to help you keep your property safe, up-to-date, and accessible to tenants. 

Ability to Invest Far Away from Home

While some landlords and property owners live within a short distance of their rental properties, it is not always necessary. When you hire a property management company, it allows you to purchase and reap the benefits of properties in other geographical locations with the need to tend to them yourself. Property management companies enable real estate investors to reach far and wide in their business plans, maximize profit margins, and maintain a long-term passive income stream. 

Contact us today for more information about our property management services.