How a Property Management Company Can Help You and Your Tenants
Owning property is a great investment opportunity. However, it also takes a lot of work. If you want to get more involved in real estate investing, it may be time to consider a property management company. Property management companies provide a lot of services for both you and your tenants. If you would like to know more, keep reading.
Screening Possible Tenants
Ideally, you want great tenants who respect your property and each other. However, you can’t judge a book by its cover, so it’s important to screen any tenant before signing any legal contracts. Naturally, this starts by gathering personal information and proof of identity.
A good property management company will also perform a background check on any possible tenants to look for red flags, such as a history of not paying rent, criminal charges, and anything else relevant. It’s also a good idea to meet your tenants in person and explain the rental contract and code of conduct. The property management company can do this for you.
Ultimately, it’s best to leave screening to property management companies because, if you don’t know what you’re doing, you may break the law. For example, you can perform credit checks, but you need the possible tenant’s permission in writing. Similarly, when screening tenants, you must follow all regulations and laws set in the Fair Housing Act. Property management companies better understand these laws and regulations.
Naturally, you need tenants to pay their rent, which can often become a touchy subject. Your property management company not only collects the monthly rent, but they handle any late payments and fees. If a tenant frequently pays late or is behind in their rent, the property management company will also report it to the appropriate credit departments.
If the area has association dues, the property management company can also handle their collection, keeping the association board free to focus on more important things. In addition, if association fees are needed for shared spaces, the property management company can better estimate and budget for necessary repairs and maintenance.
Finally, a good property management company can streamline rent and association due payments with online portals. Not only does this make it easier to track payments and fees, but it makes it easier for tenants to pay rent and dues.
Handling Repairs and Maintenance
Owning one home requires a lot of work to keep it well maintained. For this reason, many people shy away from investing in real estate. However, with a property management company, they handle the repairs and maintenance on your behalf.
For starters, this means when tenants have an issue, they don’t call you. They call the property management company. Not only does this save you stress, but it can also save you time and money. Some repairs and maintenance are easy, such as replacing broken appliances, but other common issues include:
- Hot water issues
- HVAC issues
- Moisture and dripping water
- Clogged toilets and drains
- Toilet leaks/runs
- Electrical work
- Smoke detectors
On top of that, the property management company deals with providing regular maintenance and upgrades, such as installing new floors and replacing fixtures. They also handle all the maintenance in any shared spaces.
Dealing With Evictions
Sadly, you may have tenants who don’t pay their rent and need to be evicted. However, there are strict laws regarding evictions, but property management companies know the rules to avoid lawsuits and penalties.
For starters, you must give your tenant proper notice, and you need valid proof of lease violations, such as not paying rent. The eviction notice itself must follow a lot of strict guidelines and may need an attorney’s approval. Luckily, a property management company will typically have an attorney on retainer.
If you want to invest in real estate, don’t wait any longer. Property management companies take all the stress and work off your hands. If you would like to know more, contact us at New Leaf Properties, LLC.