No one cares about your property as much as you do. So, it’s understandable if you’re apprehensive about passing on management to someone else. After all, you have to trust this person to make decisions that affect your asset and monthly cash flow.
You may not see the value in hiring a manager if you’re doing the work on your own, but the fact is, hiring one will save you money. Here are a few ways a property management company can protect your investment and increase your cash flow.
Expert Marketing Reduces Vacancy
Sure, it’s easy for landlords to put a sign in the yard or advertisement in the newspaper to market a rental. But property managers use more effective tactics that lease units faster, find better tenants and reduce vacancy loss.
We have advanced screening tools for local and national background checks as well as credit checks. A tenant’s history is a good indicator of whether or not they’ll take care of the property, pay on time and stick around.
Related: The Importance of Keeping Good Records for Multiple Investment Properties
Of course, you could learn marketing and screening techniques on your own but do you have the time?
Consistent Inspections Decrease Repair Costs
A property manager performs regular inspections to protect your investment. We inspect the property before a resident moves in to document the original condition, then we do another inspection six months into the lease term to check in. A final inspection happens once the resident moves out.
Tenants are more vigilant about taking care of the property when they know someone will be around to check. This results in fewer repairs, and if a resident does cause damage, managers document it and charge it back to the resident, saving you money.
The Pros Save You From Legal Costs
Finally, when you hire a manager you also get their landlord/tenant law expertise. A professional on your side to draft leases and other documents saves you stress and money that comes with legal mishaps.
You can download legal forms from resources like landlord.com, but the forms are basic templates and often exclude terms that someone with experience knows to add. For example, we know not to allow waterbeds, kerosene lamps or car repair in the front yard and we’ve added the terms to our leases.
Related: 10 Rental Income Property Tax Deductions You Can’t Afford to Miss
Another case where legalities can cost you money is how you handle security deposits. In Dallas, you’re required to pay a resident three-times the amount of their security deposit if you don’t provide an itemized document showing how you applied the deposit.
This happened recently to someone who reached out to us for help to resolve the issue, but the damage was already done. The mistake cost them $20,000.
Bottom Line: If you lack experience but love your property, money and sanity, you should hire someone to help you. You’ll save in the long run and it’s worth the investment.
Not sure how to get started Working with a Property Management Company? Give us a call!