Building owners who rent to tenants are responsible for a variety of different property management services. Since many landlords have other day-to-day commitments, they often outsource these tasks to a management firm with experienced professionals. These types of services save a landlord significant time on these tasks. Routine services include building inspection, rent collection, and any needed repairs.
Property Value Assessment
When an owner first acquires property for rent, he or she will order a routine inspection to determine the current value. The values of nearby properties can give a general idea, but this type of assessment will help determine a fair rental rate. A consultant will normally research local rental rates and discuss them with the new landlord to arrive at possible prices for tenants. These rates are often based on buildings of similar ages and sizes. A property management professional will also note any needed repairs and make suggestions for cosmetic improvements.
Marketing for Prospective Tenants
Advertising a property for rent takes significant time and effort. Management services can help a landlord determine the best type of marketing plan for a specific type of building. Consultants can create and distribute advertising for a property in the form of online ads and printed materials. They can also contact other managers and realtors in their networks to find possible tenant leads.
Tenant Evaluation and Moving Assistance
One of the most important parts of a property management consultant’s job is to screen potential tenants for minimal requirements. These most often include income and credit ratings. Tenant screenings are considered effective ways to minimize the landlord’s risk of losses from unpaid rent. Many rental applications also require prospective tenants to list any past criminal history. A consultant is often familiar with local privacy laws related to rental applications as well.
Rent Collection and Accounting
Property management services can take care of all rent collections for each tenant. These tasks include invoicing each tenant for the monthly payment, recording submitted payments, and sending out any notices of overdue rent. Managers can also collect any imposed late fees on top of missed rent payments.
Repairs and Maintenance
Management firms can work with landlords to arrange building inspections on a routine schedule. This practice can be beneficial for older buildings because an inspector can catch minor problems before they become larger, more costly ones. Items on one of these inspection checklists can include the condition of the plumbing and wiring, any worn or crumbling drywall, and any tenant-caused damage beyond normal wear and tear.
Utilizing property management services can make a landlord’s job much easier and less prone to mistakes. Management consultants can provide a less experienced landlord with helpful advice and information about running a successful rental property. These professionals can also take over the most time-consuming tasks required of a landlord, such as advertising for new tenants, collecting rent payments, and inspecting the property for any needed repairs. Many landlords find the services of one of these firms well worth the added financial investment.