There are common myths property owners believe about property management companies. One of the biggest is the myth of losing control of your property. Owners often think when they hire management companies, they will start putting any old tenant into the rental, and start charging huge fees, while tenants ruin the property. This is completely false.
Another worry is paying too much for repair services by hiring vendors chosen by the management company. Again, this is completely false.
As landlords ourselves, we understand the concerns property owners have in turning over management to an outside company. We had them ourselves. Which is why we started Day Property Management LLC.
Let’s set the facts straight.
6 Common Myths of Property Management
Myth #1: I can manage them myself.
Fact: As an owner, paying for something you can do, seems unreasonable. You can manage your own properties. When you own a few units this is not a problem. Managing can become an issue when you start buying more rentals or you find managing taking over all of your time.
How much money is that time worth to you? Typical management fees are 8% and 12% of the gross rents collected, depending on the services you want them to provide. It’s in the best interest of everyone to have full rental units. If you have a vacancy and no rent is collected you don’t pay a fee.
Think about whether you feel your peace of mind is worth 8-12%, if so, find a management company you can trust like Day Property Management LLC.
Myth #2: I can find better tenants.
Fact: You may trust the story a tenant gives you for giving notice at their last rental or maybe a friend recommended someone and they seem like nice people. You may feel like a good judge of character. We all have a public face. Are they really being upfront with you? Can you take a risk with your investment?
There are better ways to screen tenants which don’t involve gut feelings. Property management companies have screening processes to check both the credit of potential tenants along with criminal background. You can set those numbers to be as strict as you’d like and the management company will advise you as to what works best.
Screening then becomes a win-win situation between owner and management company. As a result, you get better tenants.
Myth #3: I can protect my property better.
Fact: You might be a very hands on landlord who drives by his properties on a weekly basis and is in contact with his tenants every time an issue arises. You may feel you are the only one who can stay on top of how your property looks.
Management companies will do these same things for you. If you’d like a weekly report, you will get it. If you want the management company to call you whenever a tenant calls, you will get it.
It’s in the management companies best interest to keep your property looking as nice as possible. The better maintained the property the higher rents they can charge, giving you both a higher monthly return.
Myth #4: I can handle repairs.
Fact: Your tenants contact you all the time and you are afraid a management company won’t respond as fast. This could not be farther from the truth, in fact when tenants call, management companies can prioritize the issue better than landlords due to dealing with similar problems in the past. They also have someone available 24/7 for those after hours and holiday issues.
You may be a very handy person. You may have fixed small plumbing, electrical or remodeling issues like a leaky faucet, new light switch or putting up shelving. Do you know when to call in the professionals? There are repairs best left to professionals both for safety and licensing reasons.
If you have a list of trades people and vendors who help you out when the repair is too much to handle, you can still work with them. Provide the property management company with your list and they will contact them whenever the tenants call with issues.
In some cases, management companies have their own property maintenance division. Day Property Management LLC and Integrated Property Solutions LLC have this in place. This can be the best of both worlds. One call to the management company also has notified the repair crew as well.
Myth #5: I can handle evictions
Fact: Property owners are passionate about their investments. They want them to look nice and provide a safe home for their tenants. When a tenant violates their lease, landlords don’t like to be the bad guy, but it happens and tenants need to be evicted from the property.
Do you know the process in which notices need to be sent to the tenants? Do you know how to file an eviction against a tenant if they have not fixed the lease violation? Can you stay cool in a high pressure situation where tenants may not be completely truthful with court officials?
Staying on top of all notice timeframes, processes, steps to filing and not being emotionally involved are all important in an eviction. You don’t want the court to see you as being unreasonable or inflexible.
Don’t miss a step and have to start all over with the process. Management companies have evictions down to a science. They have each notice ready to go in the order and timeframe necessary to remove a tenant according to the law. Management companies know how to serve and file the eviction if a tenant doesn’t fix the problem. They will go to court on your behalf, only responding to the judge when necessary to get the judgement.
Myth #6: I can handle keeping up on new laws
Fact: As a landlord you wear many hats, the owner, repair person, tenant screener, project coordinator, and all around problem solver. Often owning rentals is a side business to a persons career.
Keeping up on the landlord/tenant laws is a full time job by itself. There are real estate attorneys who only deal with landlord/tenant law on a daily basis. Most property owners do not buy rentals thinking they will be managing daily tasks and being current on changes in the law.
As part of keeping your investment protected and abiding by tenants rights, management companies have people who keep current on the laws affecting you.
Before you discount hiring a property management company, think about these six myths and facts. Would hiring a management company give you time to work and play? Would your overall stress level decrease if you didn’t constantly worry about rental issues?
Hiring experts to manage for you, will put you back in charge of your life.
To discuss how our tailored services fit your management needs, visit our contact us page today by clicking here. Or give us a call at Day Property Management LLC 920-968-0626.