The Role of a Property Management Company

The Role of a Property Management Company

A property management company deals directly with tenants on behalf of an investment owner and handles the day-to-day details of owning a rental property. A good property management company will alleviate the stress of managing your rental property, leaving you to enjoy the passive income. Management companies provide a multitude of services to owners. Investment owners can choose to use some or all of the services provided by a management company.

    A property management company will rent your property. An investment property should make you money and renting at the correct rental price is the first step. A management manager markets your property to prospective tenants by creating advertisements and sharing it hem with other management companies. Often, managers will already have access to prospective tenants using their own resources to screen tenants by checking their credit history and references.

Management companies provide tenant management services. They can provide a state compliant lease and will review the lease agreement with tenants. The company will oversee the move-in and move-out of tenants. Management companies collect rent, send out late notices, and can even represent the owner in each stage of an eviction process. They are even able to perform periodic inspections to your property by checking for safety hazards and needed repairs. Typically, a rental owner creates an account with a property management company. The owner deposits money into the account and the management company can make repairs using those funds on your behalf.

    Monitor maintenance costs. All properties will need maintenance over time. Proper upkeep of your investment is required to maintain the value. Management companies have relationships with local, reliable contractors who can repair issues quickly. A management company is able to field tenant calls and provide a quick solution to an issue without inconveniencing you. By maintaining the condition of your property, you can avoid major issues that may arise later.

    A management company protects your interests. Bookkeeping services can be provided to owners as the management company keeps track of invoices and receipts. They can update you with current laws and rules affecting landlords. If any legal issues arise from owning your investment property, the management company is able to refer you to the proper attorney.

Hiring a property management company will take the pressure off of a landlord and create a more streamlined approach to receiving income from your investment. Owning rental properties should be passive income and trading your time to manage rental properties can turn it into another job. Choosing a professional and capable property management company allows you to enjoy your passive investment.

     Kendra Thurston is a free-lance writer and entrepreneur residing in Fort Lauderdale, Florida. She writes about real estate, education, and travel. She is currently the content manager for Acclaim Management & Realty.