I was having a discussion with one of my friends who owns real estate in Durham California, and he revealed something very interesting about the market. He told me that when he got into the business, it was hemorrhaging losses. At first, he did not understand what he was doing wrong. He finally found the solution by typing “Property management Durham NC” in his search engine. What happened was revolutionary. He was able to find a property management company that ended his woes. He shared some of the benefits of having a management company to handle your property:
1. They hep you get better tenants:
Simply put, not all tenants are equal. There are some who will constantly get in trouble with the law, making police officers regular visitors to your property. This kind of image may affect how potential tenants view you. Even the ones who are already in your property may feel like the place is not safe, and they need to leave. The company would also help you weed out a potential tenant with bad credit who fails to pay you as scheduled, forcing you to seek services of a debt collector. A property management company does background checks and gets you high quality tenants.
2. They are intermediaries between you and the tenants:
There will be moments when your tenant will need you to go to the property immediately. Think of how inconveniencing it would be, if you are engaged in other activities or you live far away. A management company will be able to act swiftly, since they have many agents who can answer and even drive to the tenant when needed.
3. They save you on legal issues:
There will be tenants who will want to drag you into legal issues that may consume your time and money. If you want to avoid that, get a company to manage the property for you. Companies always have lawyers with vast knowledge on the rights of both tenant and landlord. They will be able to shield you from the many unnecessary law suits some tenants file when they do not want to pay rent.
4. They help you retain tenants:
Since they act as managers and mediators when problems arise, managers can significantly reduce turnover rate of tenants. If a tenant needs something repaired immediately, the managers always jump in to help. In case of conflict, they have their way of resolving it, so that it does not result into an unsatisfied tenant moving out. Remember than a high turnover of tenants costs you a lot. You have to repair damages, repaint the house, and advertise for vacancy.
5. They make the collection of rent easier:
One of the biggest headaches for landlords is making sure all tenants pay up on time. The reminders and going through books to ensure they are all paid up can be hectic. If a company handles it for you, they have the resources to reach out to every single tenant. Moreover, tenants who know they are dealing with a management company are more likely to pay than when they know they are working with an individual.