Property management companies provide a wide variety of services for landlords. Whether you own one rental unit or several hundred, they can help you handle tenant issues, deal with evictions, and promote your property. They also make sure the property is maintained. Having a property manager means less stress for you and your tenants.
A property management company will charge a fee for their services, usually as a percentage of the rent collected from your residents. If you choose a smaller firm, you can expect to pay less. However, if you are working with a large property management company, you may be required to set up your own office space, as well as provide staff, such as a maintenance engineer.
Property management is a very profitable business. It can be an excellent option for those who are unable to handle the day-to-day maintenance of their rental properties. This allows them to make more money. It can also be a good solution for landlords who live far away from their rental property.
Property managers can help you with many aspects of running your rental property, including screening applicants, maintaining the physical condition of your property, and ensuring that your tenants are following your lease conditions. They can also handle emergency situations. For instance, if a tenant breaks the lease, the property management company can arrange for the police to be involved.
Using a property management company can also mean lower vacancy rates. The company will screen applicants and find new tenants. They will also follow up on leads, handle complaints, and ensure that the property is clean. They may even hire professional contractors to handle more extensive repairs.
The initial fee you pay to a property management company is typically a leasing fee. The amount can range from 25 to 100 percent of the first month's rent. The fee is also used to cover the cost of finding a new tenant. If you have several rental units, you'll need to keep meticulous records of your expenses.
A good property management company will ask for references from previous landlords. This gives them a sense of your tenants' behavior and helps them predict the way they will behave in the future. They should also be Fair Housing compliant.
You should also discuss your fees with the company before you sign a contract. The fee should be enforceable and include details about what you're paying for, such as services provided and how much you'll be charged. You should also be able to cancel the agreement if you change your mind.
Before hiring a property management company, you should research them thoroughly. Look at their reputation in the local area, check reviews online, and interview the best-rated companies. Ultimately, you want to find a company that will be a good fit for you.
As with any business, you need to decide whether the costs and revenue of your property management business are justified. It's important to consider all expenses, as well as irregular ones. You'll need to create a budget surplus in case unexpected costs arise.