We get it. Property management seems like a big expense.
And we are the first to admit- it is not for everyone.
If you like the day to day of being a landlord.
If you like control.
If you have resources to make it worth your while.
You probably don’t need a property management company.
But we do believe that most good property management companies can save investors a lot of work, time, and money. And, if you are becoming overwhelmed- it is probably the time to consider one.
So we broke down the four major ways a Property Manager can save you money. Then, we go over how to pick a group that is right for you and your investment.
1. Efficient Tenant Screening
Before you read any further- I want you to open a tab, and search “fake pay stubs.”
Did you do it? Do you now feel a little unsure of the authenticity of pay stubs you have looked at?
If you are a landlord juggling a full-time job, family responsibilities, and multiple properties, you simply do not have the luxury of time to scrutinize tenant applications for potential fraud.
The urgency to fill vacancies may lead to hastily approved applications or, worse, the acceptance of tenants with misrepresented information.
Even if property investment is your full-time gig, the sheer volume of information to verify for each tenant can be overwhelming.
A good property manager should already have systems, robust systems, in place to combat fraud and place the best tenants possible saving you money and time.
At T&H we have in-depth background, credit, and financial checks for all of our tenants.
We use a system that looks at their actual deposits- not their pay stub PDF.
This helps us, and other similar property managers, to combat fraud quickly and get your home rented faster with better tenants.
These in-depth checks help us with a few things:
Decreased Risk of Eviction- Securing well-qualified tenants significantly reduces the likelihood of facing eviction issues. It’s a proactive approach to safeguarding your property and investment.
Lower Risk of Maintenance Issues-Quality tenants tend to cause less damage, translating to fewer repair and renovation expenses. A well-maintained property preserves its value and your bottom line.
Improved On-Time Rent Payments-Tenants with a solid rental history are more likely to pay rent on time, getting money in your pocket quicker, and without worry.
2. Legal Expertise
In our experience, people in general are scared of what they don’t know, or haven’t experienced. While a lot of aspects of being a landlord can come second nature, the legal side is a bit more complicated.
Evictions, leases, and tenant rights are pivotal facets of being a successful and ethical landlord, yet they often are the most confusing.
Sure, you could venture online to draft leases or gamble on the hope that evictions will never be part of your narrative. Alternatively, you could hire your own attorney – of course, at a substantial cost.
But working with a local property manager could be the absolute best bang for your buck when it comes to the legal side of owning properties. Specifically, a local property management company.
Why local? Because laws and regulations change from state to state. Your lawyer in California may not have the slightest idea about what you need for a property in Muncie, Indiana.
A good property management company should have solid leases that we know are binding and comprehensive for that property’s location.
Their attorneys and team should be versed in court, during evictions, and all other nightmare scenarios you could possibly dream of.
This saves you from costly mistakes, retainer fees, and even failed evictions. This saves you from mistakes- which could compound the initial costs of a legal job poorly done.
This can lead to saving of hundreds if not thousands- and we believe it is truly one of the biggest selling points for hiring a property management company.
Imagine this scenario: a tenant calls in distress as their heat has gone out. You find yourself frantically Googling HVAC companies and opt for the quickest solution. They fix the issue, but the price tag leaves you wincing. A week later, the problem resurfaces, revealing a botched installation—more money, more eye-watering expenses.
We cannot always predict when a maintenance concern will arise, or know if the tenant is completing preventative maintenance like we would on our own home.
But any property management company worth while, will take care of must, if not all, of these frustrating issues.
At T&H we have a Vetted Vendors List. We think that most great property management companies will have something similar. This is a list of those we trust to work on our rental properties, and those who even work on our personal homes. That is how much we trust them.
We have relationships with these vendors, and know you are getting the best bang for your buck while maintaining great work.
And the best part of all- you won’t even hear about a maintenance issue until your PM gives you the update, and by that time it is well on its way to being solved for you.
No late night google searching. No angry phone calls. And more than likely, more money in your pocket.
Property management companies can also help with preventative maintenance. Completing yearly inspections and maintenance when you may not have time to, can save you hundreds if not thousands of dollars.
Property Management Companies don’t possess superpowers. We can’t miraculously revive a sluggish rental market, and finding the perfect tenant overnight is more times than not beyond our capabilities. Nevertheless, we firmly believe that with a well-crafted marketing plan, a property manager can significantly reduce your vacancy rates.
A worthwhile property management company should have systems to create compelling listings leveraging all of the online platforms to get your home rented faster.
With more resources to get your property listing seen, they can get it rented quicker and at a better rate, therefore boosting your income.
The best part? You aren’t in charge or directly paying for the various listings on various sites.
Opting for a local company tailored to your investment home is an even more strategic. As local industry experts, a local property manager can provide invaluable insights to help you rent your home quickly and efficiently.
We’re well-versed in the rental landscape, knowing the rates for comparable homes because, well, we’re the ones renting them.
When executed effectively, a property management company should expedite the rental process, making it smoother, with more avenues for high-quality tenants to discover your property, all while securing the best rates for your success.
How to Find The Right Property Manager for You
We truly encourage interviewing a prospective PM Group- to make sure they have the experience and systems in place to lighten your load, not burden it more.
It should go like this when interviewing:
Need a contractor? They’ve got a list, complete with pre-negotiated best deals.
Concerned about vacancies? Their marketing plan has you covered.
Legal items and the thought of eviction keeping you up at night? They have a lawyer on retainer and ready to go at a moment’s notice.
In essence, the questions that keep you up at night- they should have systems and answers for.
Saving you money.
And your peace of mind.