The single greatest benefit investors are made privy to by working with property management companies is time. By enlisting the services of a good property management company, investors won’t be forced to manage the property themselves; they’ll be free to take on other responsibilities. For most investors, the added time will help them find and acquire more rental properties to add to their portfolio. For others, not having to manage a property simply rids their lives of unnecessary stress. It is worth noting, however, that time isn’t the only reason someone may want to hire a property management company. There are actually several benefits to hiring a manager, not the least of which include:
- Mitigate Liability: One of the little-understood perks of having a third party property management firm is the buffer from liability a good property manager adds to an inexperienced investor’s portfolio. If for nothing else, it can be easy for opportunistic tenants to make false accusations about rent collection tactics, illegal eviction practices, and negligent maintenance. A third-party manager can deflect many of the false claims levied in an investor’s direction.
- Quality Tenants: Property management companies manage properties for a living; it’s what they are good at. As a result, the best of them have grown to know what to look for in a good tenant. It is, therefore, safe to assume hiring a property manager will result in better tenants for a property, which is great news for landlords. The better the tenant, the better the experience will be for owners.
- Shorter Vacancies: Not only will a property management company advertise to fill vacancies, but it will also do so with a sense of urgency and efficiency. Again, since this is their job, real estate management companies are most likely better at filling vacancies than traditional landlords, which drastically shortens the length of vacancies. Meanwhile, landlords can increase profits throughout the year by keeping the asset in service.
- Lower Maintenance Costs: Working with good property management firms will give investors access to their network of professional contractors. The contacts the property manager already has in place will work in your favor and save on maintenance costs. Not only that, but the contractors will also come with a recommendation, which is invaluable.
- Better Reviews: Tenants tend to prefer working with property managers, as the process is almost always objectively smoother. As a result, the experience is typically better than dealing directly with landlords. Subsequently, renters are more likely to leave a good review when they vacate the premises. Those same reviews will serve to drive more traffic to the home when the time comes to find another tenant.
Credit to Than Merrill.