The Property Owners Dilemma
Are you being called over to your rental property time and time again? Constant repair requests, hunting down your rent payment or checking on “decorating” you allowed your tenant to do lead to frustration and resentment.
Do these issues have you thinking about selling your property and moving out of the area? If tenants pains, repair nightmares and changes in landlord law have you questioning your ownership…there are ways to solve your management headaches and keep your property at the same time.
The common problems most property owners face revolve around tenants, repairs, record keeping and budget. A vacant building may have its own challenges, but throw people in the mix and you never know what you are going to get.
4 Reasons to Hire a Property Management Company
1. Your tenants are not adhering to the lease
Most owners feel they are a good judge of character. Showing the property to potential renters and chatting with them, they’ll know if the potential renters should become renters. As a result they go with their gut and skimp on doing criminal background checks, credit checks and calling references.
Unfortunately, the lack of a process and tenant screening can lead to renting to habitual property destroyers. You’ll be hunting down every rent payment. Dealing with constant lease violations, like having long term guests or pets when the lease forbids it. They may be treating your rental like their own personal garbage dump.
When you hire a property management company like Day Property Management, all potential tenants are put through a rigorous screening process.
This eliminates those who have had previous evictions, poor credit history showing unreliable bill payment and other law suits. These are possible indicators showing they didn’t respect the previous rental they lived in. And you don’t want them living in your property.
Professional property management companies have talked to hundreds of people. Through those conversations, they have become experts in reading people. What they miss in conversation is uncovered in the background checks.
Management companies go into every lease with your business in mind.
They set rent levels to what is appropriate to the current housing market. No guessing what your rent should be. They know the market value of rental units and will ask for more when it’s appropriate. You’ll receive your security deposits before your tenants move in. Not over time as extra payments to their monthly rent. Management companies enforce the terms of your lease. They charge all late fees automatically and have a system to send the appropriate notices for late payment.
Landlords who manage privately, often have a hard time evicting their tenants. Especially with tenants who know the landlord law better than they know it themselves. You won’t have the “should I or shouldn’t I” conversations with your management company.
If tenants violate their lease, they receive the appropriate notices to fix the problem or decide to move. Property management companies can even represent you in court keeping you out of the unpleasantries all together.
2. Repairs are constant, you are paying too much for contractors, or cutting corners due to lack of funds.
Repairs are a necessity when you own rental property.
As a landlord, you must keep all fixtures in your units safe, functional and in good working order. However, when the tenant calls you at 1AM because they only now noticed a toiled leak turn into a flooded bathroom, you may wish you had never given out your phone number.
Emergencies do happen! They can be complete accidents. It is helpful to fix issues when they are small inconveniences instead of large repairs. A repair escrow should be set up to save money for those larger repairs if and when they happen.
Property management companies are able to address issues as they are informed of them.
Repairs are not put off until they have time to fix it. If a tenant calls with a repair issue, the management company can evaluate the priority of the repair and get it done.
Often, management companies have separate property maintenance divisions or partnerships they count on to help keep your properties in good repair. Day Property Management is able to do exactly that with Integrated Property Solutions. This division of property management is able to handle any maintenance issue the tenant discusses with the management company.
This also eliminates a big issue many landlords have, hiring whoever is available at the time. This can mean an on-call repair man who may charge extra fees for after-hour calls or weekend calls. Or hiring your buddies unemployed brother because he did the plumbing or electrical in his own house and can save you some money. A potentially more dangerous option is allowing the tenant to fix it. All options put you in a hard situations as a landlord, paying too much, cutting corners or violating city code to get the repair done cheap.
If the management company doesn’t have a division or partnership with a maintenance company, they do have trusted contractors they have worked with. They know these contractors will fix it correctly and for a reasonable amount.
3. You are not tracking all of your expenses
Bookkeeping and keeping track of your budget is a secondary job as a property owner.
If you are the type of owner to throw the receipts in a box until tax time, you are not alone. Keeping track of your spending and what is coming out of your pocket can make or break you. Property management companies can set a budget to help with this situation. Unless an emergency comes up, you can schedule repairs appropriately saving you time and money.
4. Staying informed and acting according to state landlord law
There are local and state laws all landlords need to follow.
Staying on the right side of landlord law will protect your rights as an owner and your tenants’ rights. The laws change frequently. Unless you go searching for the changes, you would have a hard time staying up to date. A violation of any of these laws could result in fines you’ll need to pay. While you might get by for a while, one law savvy tenant could find a way to use it against you… it happens.
Combat it by hiring a property management company. They know how to protect your rights and the tenants’ rights. They keep everyone honest and on the correct side of the law. And when necessary, they handle all evictions for their property owners,
Property management companies like Day Property Management work with rental units of every size from single-family homes to multi-family apartment complexes. To get a quote for management, call to schedule a meeting. 920-968-0626. Or visit our contact page and fill out the form.