13% of the United States' gross domestic product is made up of real estate. This is a large chunk of the economy and property management plays a vital role.
Many small real estate investors tend to manage the property themselves. However, managing a property can be a hard task to take on and at times it becomes a full-time job. There are many things that go into taking care of a house. This is why many real estate investors hire property management companies.
But, what does a property management company do, and why are they helpful?
What Does a Property Management Company Do?
Property management companies take care of all of the management tasks for your property. As you could imagine, this involves several different kinds of tasks.
1. Property Management Companies Handle Renter Turnover
One of the most stressful parts about owning a rental property is finding the right tenant. If no one is renting the home that you own, you won't make any money off of their rent.
In fact, you'd actually be losing money if the house were empty. The bottom line is that you have to have renters to make money. In fact, high turnover can make you so much money that you can retire early.
Property management companies will handle tenant turnover and make sure to advertise your property for you. They handle bringing in new renters. This will be a huge weight off of your shoulders.
In fact, property management companies also handle running background checks and ensuring proper legal processes are followed. This means that you don't have to worry about handing out eviction notices yourself. They will handle all uncomfortable communication for you.
2. Property Management Companies Are Close-By
Many rental property owners live far the location of the rental property. Being far away from your property can make upkeep difficult and nearly impossible.
Property management companies take care of local properties that they and their specialists are near. In fact, they're probably closer than you are.
If you hire property managers, you can take care of several different properties across the nation. This opens up your prospects for properties.
It also takes the stress of staying in the area off your back. You can move anywhere you like and own any property if you have a property management company.
3. Property Management Companies Arrange for Move-Ins
Whenever one set of tenants move out, you have to prepare for another set of tenants. This involves deep cleaning the property and fixing any issues that you may find on the property.
Property management companies handle all of this. From the cleaning to the maintenance, property management companies take care of bringing in experts. This also means that you'll be saving money in the long run on these issues.
If you hire a property management company, you won't have to worry about preparing the home at all. You can sit back while the management company takes care of the rest.
4. Property Management Companies Handle All Repairs
If your tenants are having a problem with the water, air, heat, or anything else, the property management company will take care of it. They will hire the experts and let them fix it so that you don't have to worry.
These repairs can be expensive, but property management companies can also get a discount with some repair companies. This means that both parties are saving money.
Most companies will have the tenants contact them directly and let them know about the repairs that they need. This means that you don't have to worry about any part of the process.
However, you should keep in mind that you will have to pay for repairs. Some property management companies have owner protection though. This is insurance for large damages that tenants may make.
5. Property Management Companies Maintain the Property
you won't have to worry about leaving your property in the hands of amateurs. Property management companies know what to look for in terms of home maintenance, and they will let you know when a home needs a new coat of paint or another upgrade.
Property management companies keep up with all property maintenance tasks. You don't have to worry about leaving your tenants with an older home that may need regular updates. The company will let you know what needs to be done and when it needs to be done.
6. Property Management Companies Resolve All Problems
If a tenant is locked out of their property at 3 AM in the morning, do you want to be the one that they call? We imagine not.
Property management companies take all of these phone calls and send out the proper employees to help the tenants. You don't have to leave your home at all.
For those who live far from their properties, this is a life-saver. You wouldn't want to jump on an airplane if your tenant has a bug in the kitchen, would you?
7. Property Management Companies Collect the Rent
Most property management companies handle the rent for you. The company will remove their fees from the rent and then give you the rest. These fees usually range from 5% to 10%.
You don't have to worry about collecting the rent from your tenants and allocating expenses to different projects for the home. The property managers that you hire will take care of this.
They will also take care of late rent or renters who moved out before the lease was up. You won't have to handle any of these difficult interactions.
Should I Hire a Property Management Company?
So, what does a property management company do? They can handle every aspect of property management for you.
If you own a property, you should highly consider hiring a property management company. Whether you're near or far, a property management company can be a big help in keeping up with your property or properties.
If you're looking for a great property management company that gives you plenty of options in Seattle, consider hiring Next Brick Property Management. We have service plans for owners near and far.