For investors planning to enter the real estate market — always keep in mind that the likelihood of getting significant value to your investment rests mostly on real estate managers, unless you’re someone with complete knowledge of all the nooks and crannies of the industry, then you’re good — highly unlikely.
Which is why you need a competent real estate management company to manage your properties. Seasoned real estate investors can vouch for the significance of real estate managers. Once you get your hands on them, you’ll realize that they’re worth their weight in gold. So here are 5 benefits of using a real estate management company:
- High Quality Tenants
The last thing you want for your property is getting bad tenants and having to deal with them on the daily. Your time is as valuable as your investment so you’d better be off never accepting them in the first place. A thorough screening process must be implemented and this is the time where a reliable real estate management company comes in handy.
Experienced real estate management companies have in their portfolio thousands of screened applications which sorted out the bad apples from the basket. They can quickly determine facts about applicants and analyse minute details for warning signs which you can interpret simply as a potential bad tenant. High quality tenants must be able to:
- Stay longer
- Take care of the property as their own
- Pay on time, and
- Cause less problems
- Less Legal Problems
A good real estate management company must be knowledgeable about the latest property owner- tenant laws. What you want as a property owner is to stay away from a potential law suit from bad tenants. Because more often than not, property owners lose more financially due to lengthy and costly legal disputes. Avoiding any law suit is much better than any tenant’s pay obligations and can save you time and downright inconvenience — which is why it’s wise to use a real estate management company to mediate between both parties.
- Lessening Vacancy
A real estate management company must perform three crucial tasks in filling out vacancies of your property.
- Finding a competitive rent rate: These real estate management companies study local markets and data on previously prevailing rates in order to come up with a competitive rent rate. Too high then you’re stuck waiting and too low will render your finances in a downward spiral.
- Effective marketing: Seasoned real estate management companies have hundreds of written ads in their portfolio which they can use to market your property effectively. These ads can attract a huge number of potential tenants in a short amount of time. Plus, real estate managers are knowledgeable about sales so they can close in a potential good tenant quickly — making your property more efficient in revenue generation.
- Improving overall quality of the property: Real estate management companies will inspect your property routinely and suggest improvements both in terms of aesthetics and functionality, which raises the value of the property.
- Better Tenant Retention
The way you handle your tenants and make retention policies affect the mood and decisions of your tenants in the long run. A competent real estate management company can handle these obligations and guarantees a sure-proof strategy in making your tenants happy — guaranteeing lengthy stays — the goal. Having tenants who stay longer removes the recurring problems associated with high turnover rates such as cleaning the units, changing locks and lockset, repairing defects, among many others.
- Access to Low Maintenance and Repair Costs
Instead of hiring your own maintenance contractors — which is another party to deal with, complete with all paper works to screen them accordingly, whether they’re competent, licensed or insured, a real estate management company have in their disposal an in-house maintenance staff or accredited contractors. Removing you the inconvenience of having to deal with another party. All real estate management companies are liable for their maintenance contractors which saves you the stress of having to deal with them yourself.
These benefits are made on the assumption of using a competent real estate management company — so it’s important on your part as a property owner to screen them accordingly because a poor choice of management company will do you more harm than good.