Working with a quality property management company such as Hamilton King Management is a great way to bring more value to your property portfolio. This is the reason why the best real estate investors emphasise on the need for upcoming investors to only work with the very best management firms. What are the benefits of working with these companies?
Reduction in time consuming legal tussles
It only takes one problematic tenant to bring about significant legal and financial problems. A good property management firm has adequate knowledge of the very latest landlord-tenant laws. This will make sure the property owner isn’t leaving himself vulnerable to a potential law suit. Some areas of legal troubles include, rent collection, handling of security deposits, termination of leases, lease addendums, inspections, evictions, tenant screening etc. It is almost impossible for a landlord to keep up with all of these. Avoiding one lawsuit may be all you need to pay the management fees of the property management company.
Provision of high quality tenants
A quality property management firm that is worth its weight in gold knows how to put together a screening process that will bring in tenants that rent longer, pay on time, put less strain on the property and generally do not cause major problems.
The most experience management companies see thousands of applications so they know what facts to look out for as they attempt to dig out warning signs. With the management company handling the screening, it will also be possible for the landlord to be protected from rental scams and also discrimination lawsuits which may arise following an inconsistent screening process.
Reduction in repair and maintenance costs
Good maintenance and repairs is what keeps tenants happy and preserve the value of your investments. This is why it is an important part of the landlord process. Hiring a management firm gives you access to their in-house maintenance staff and also their network of licensed, bonded and insured contractors that are already known for providing good pricing and qualitative work. This generally translates into significant savings especially if you compare the costs of vetting and hiring your own maintenance hands.
Improved tenant retention
Apart from lost rent, high tenant turnover rate has its own serious problems. Turnover process requires thorough cleaning, changing of locks, painting of walls, bringing in new carpets, carrying out cosmetic or wholesale repairs, marketing, screening new tenants etc. All of these are time consuming and expensive but can be averted by improving tenant retention through keeping them happy and well catered for.
Reduction in vacancy cycles
With a property management firm, you will be able to significantly cut down on the length of time it will take to fill any vacancies you may have. This is because the company will prepare and prepare and improve the property for rent, determine the best rate to charge in line with current trends, market the property better, etc.
Better rent collection process
The handling of rent collection and late payments may be the difference between success and failure as a landlord. Collecting rent as at when due is the only way to maintain a regular cash flow and it is important for your tenants to fully understand that this is not negotiable. A quality property management company puts a buffer between you and the tenant. This ensures you won’t be involved in chasing down rent, listening to excuses or evictions.
All of these show why good property estate management companies are a must for every major property investor.