Do you have an extra house or condo that’s sitting vacant? Do you want to enjoy a steady stream of recurring revenue by letting someone live there and pay rent? Renting out your house and being a landlord might seem like a simple job. However, many landlords are finding that it a second full-time job and they can’t wait to quit. A quick internet search reveals hundreds of horror stories like the ones here about how nightmare tenants make life untenable for property owners. For first-time real estate investors as well as seasoned pros, the benefits of outsourcing the day-to-day management of the property are evident. Here are a few of the most common reasons.
#1 Making More Money
Houses and condos don’t stop costing you money just because no one is paying to live in them. A property is only profitable if it is rented out for as long as possible at the best rate possible with as few vacant months as possible. So, a property management company can help you:
- Determine the correct rental rate based on similar properties so you can maximize your rental income without scaring prospective tenants away or undercutting your profit margins
- Advertise your rental property effectively to increase visibility in the market and ensure you get plenty of offers
- Find tenants who pay on time and stay in the property for longer, reducing vacancies and eliminating the need to chase after rent payments
- Keep your property in good repair and perform quick “make ready” work between tenants so you have less vacant time in your rental cycle
#2 Handling Tenant Interaction
No matter how much you may like the people renting your property, you REALLY don’t want them calling or texting you over every little thing. You also don’t want to let your fondness for them get in the way of making smart decisions. Therefore, a property management company adds a layer of accountability and professionalism between you and your tenants. They take time-consuming tasks off your plate including:
- Showing the property to prospective tenants
- Screening tenants and dealing with all the negotiations and transactional paperwork
- Promptly addressing any tenant concerns about repairs and maintenance for the duration of the lease
#3 Decreasing Your Risk
As the landlord of a property, you might think you are in a position of power and authority in a rental situation. But tenants not only have well-defined rights, but they also have the advantage of being in your property where they can cause all kinds of mischief. The best way to avoid nightmare scenarios is through careful vetting of prospective tenants. A property management company knows all the tricks that scammers use and the best ways to screen for potential trouble-makers. So, they can greatly reduce the risk of your property being rented by someone who will
- Fail to pay on time (or at all)
- Resist eviction and turn into a perpetual squatter
- Trash your property in a fit of vengeful rage
- Take you to court, tying up your time and resources while forcing you to rack up a steep legal bill
#4 Having a Trusted Partner
Partnering with a company that is an expert at property management has many advantages. They can:
- Tell you what deductions you should discuss with your CPA to gain tax advantages
- Protect your interest and comply with the law by ensuring you properly write and execute your lease documents
- Enhance the value of your property with cost-effective upgrades performed by trustworthy contractors
- Help you scale your real estate investing venture by freeing up your time to look for your next hot property
#5 Enjoying the Good Life
With a property management company covering the bases on the home front, you won’t be tied to a particular location. You can go on vacation, move away, buy additional real estate in other areas, and simply cash the rent checks each month. There’s no shame in being an absentee landlord when you know that your tenants are being well cared for by a company that is dedicated to creating a win-win for everyone involved.
Contact Ardent Residential for free pricing and rent analysis today if you are interested in renting out your house.
