Welcome to the Topic “Reasons Why Landlords Need a Property Management Company”
In the past, we’ve discussed why you should consider hiring a property manager to help you with your real estate investment:
- Save your time. Managing rental properties can be overwhelming, especially if you have other work to hold down. Being personally present at your rental property is sometimes impossible because other commitments fill your time.
- Expertise. After investing in your first rental, you may find that you lack the necessary skills to run a profitable rental property business.
- Willingness. You may find that you aren’t willing to put in the necessary time to manage all the details required to rent your property successfully.
These three reasons for employing a property manager are conclusive. Most property owners fall into at least one of these three categories.
However, there are several reasons why a landlord might want to use the services of a property management company in Philadelphia.
And it just so happens that our Philadelphia property managers are privy to that knowledge and want to share it with you.
Landlord vs. Property Manager: What’s the Difference?
A landlord is a property owner who plays a more interactive role in the day-to-day running of the rental property. In contrast, a property manager oversees and handles the property for the landlord for a fraction of the rent or a flat fee.
Types of properties managed
Usually, a landlord can manage up to six single-family homes without outside help, while property managers typically manage larger multifamily homes, commercial properties, or a combination of both.
Landlords and property managers often perform similar functions, which may include the following:
- Preparation and enforcement of rental agreements
- Determining the rental price
- Screening potential tenants
- Rental collection
- Property maintenance and repairs
- Handling tenant complaints and disputes
However, property managers can do things better and more efficiently with experience, training, and access to resources that individual landlords do not have.
First, they can help you find better tenants. Well-established property management companies have extensive marketing and advertising programs and a larger pool of potential tenants. This improves the chance that you will find qualified tenants in less time. They also have effective screening procedures in place to weed out bad tenants.
Property managers are also familiar with existing local, state, and federal landlord and tenant laws, so you don’t have to worry about facing legal charges because you mishandled something you weren’t aware of (such as discriminatory screening and collection fees tenants, the inaccuracy of the lease agreement, the tenant’s right to privacy, etc.). They will also take the often complicated and expensive eviction process off your hands in the unfortunate event that you have to undergo it.
More importantly, they can help you earn more money without hard work. It may be true that having a property manager will cost you some money, but it will help you find better tenants who will pay their rent on time, stay longer and take good care of your property. You don’t have to be distressed about your monthly cash flow, missed rent, tenant turnover costs, or repairs.
Most property owners don’t realize that preparing to lease a unit and finding qualified tenants can be expensive. Even on top of the lost rent during the vacancy, tenant turnover can cost you up to three months’ rent! Good for you; getting the right tenants can avoid all of this.
Reasons Landlords need a property management company in Philadelphia
- They do not live near the property
- Supplier Relations
- Customer service
- Help Extension
- Setting rental rates
- Compliance with the law
- Contact point
- Lease agreements
- Maintenance and repairs
- Accounting and bookkeeping
- You don’t live nearby
Landlords who do not reside near their rental properties will struggle to manage the day-to-day operations that real estate investing requires.
This is where a property management company near your rental comes in handy.
Not only can they handle the day-to-day stuff with your property, but they can also be right there in an emergency. This is helpful for you and satisfying for your tenants.
Knowing someone highly qualified, affordable, timely, and customer-oriented is valuable.
That is why the help of a property manager is beneficial for you as a landlord.
Over the years, successful property management companies have built strong relationships with vendors – maintenance workers (if they don’t have their crew), contractors, suppliers, tradespeople, and vendors.
Your property manager’s contacts will get you the best job in town and save you money in the long run.
Understanding how to keep your tenants happy and willing to sign a lease extension at the end of the lease may seem easy.
Unfortunately, many landlords lack the customer service skills tenants expect from their landlords.
Over time, this can damage a healthy landlord-tenant relationship, eventually leading to the property being vacated at the end of the tenancy.
However, by using a customer service-oriented property management team, you will reap the benefits of their ability to satisfy your tenants.
Whether it’s the tenant package they provide to new tenants, their speedy handling of maintenance and repair issues, or simply the convenience that online rent collection provides to engaged tenants, a good property management company will handle all the needs of the tenant.
Property management companies are mindful of the real estate market trends that cover the regions in which they operate.
This means that for those seeking to expand their portfolios across areas, the perspective of a property manager who already manages one or more of their properties can be advantageous.
If you’re looking to cross city or state lines in hopes of investing in some valuable rental property, having an established relationship with a property management company will help you gain knowledge of new markets.
Plus, you can have them manage your new properties, making transitioning to other areas even more accessible.
Setting rental rates
Along with knowing the current state of the rental property market, a qualified property management team will also understand the current rental rates.
They’ll be able to help you ascertain the correct rental rate for your property, depending on things like location, amenities, and going rates for similar properties.
This will prevent you from undercharging and not being able to maximize your monthly rental income and to overprice, which can lead to more extended periods of vacancy.
Additionally, a good property manager can help you decide when and how much it is appropriate to increase your current rental rates.
Compliance with the law
Ignorance of rental property rules and regulations is no excuse for owning investment properties.
Here are some of the essential legal issues that an experienced property management company can help you with:
- Fair Housing Rules
- Lead and Form Inspections/Disclosures
- Smoke and carbon monoxide detector requirements
- Housing and building laws
- Correct notices
- Eviction procedures
Employ a property management company to help make sure you are always complying with federal and local laws that pertain to your property.
When you manage your tenancy yourself, you will be responsible for handling tenant inquiries, complaints, and disputes directly. While this allows you to get in touch with everything going on with your property, it can inevitably eat up a lot of your time and energy.
On the other hand, you wouldn’t be in the same situation if you had a property manager working for you. When the manager takes your place as the primary point of contact, you can maintain a professional distance from your tenants while making them feel comfortable in your rental property. This will take a massive load off your shoulders.
Landlords typically use an available lease obtained from a lawyer or other outside source. Still, they may include specific rent collection guidelines, pet policies, and other terms, while property management companies use a general lease for all of their managed properties.
Property managers are familiar with all applicable state and federal laws, so they would certainly not fail to include all relevant facts about the lease, landlord policies, and disclosures. Remember that you can face severe charges for not complying with applicable laws, so having a team of experts can be a definite advantage.
Maintenance and repairs
Regular maintenance and dealing with repair requests from your tenants can be time-consuming. If you’re a do-it-yourself landlord, you’ll need to find the time to address these needs. Otherwise, you will need to find a qualified technician or specialist to do the job. Neither of these tasks is as simple as it seems.
Working with a property manager relieves you of this responsibility as they have already implemented a more efficient approach to dealing with maintenance and repair requirements and likely have a network of qualified professionals who can do the job efficiently.
Accounting and bookkeeping
Landlords are responsible for bookkeeping for tax purposes, but if that’s not your forte, you may need to outsource the job to a professional. Fortunately, this tedious but necessary task is part of the services offered by most property managers, so you don’t have to be distressed about maintaining transaction records again.
There are many compelling reasons to invest in a property management company.
By choosing a competitive property management team like Philadelphia Property Management Company, you will not only take advantage of their services but also maximize your profitability and support your success as a property owner.
If you need an experienced, highly qualified, and customer-oriented property management company, contact Philadelphia Property Management Company now. We can help you look for the most qualified tenants, minimize the risks associated with owning investment properties and ensure your property rental business continues to grow.
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Also Read: Property Management: Definition and Responsibilities