Managing a property requires a lot of dedication and time. For this reason, most property owners prefer using the services of competent property managers who alleviate the stress owners otherwise feel when required to perform duties as landlords. Here are the benefits of hiring a property management company to run the day-to-day operations of your property.
1. Property Assessment and Advertisement
After signing an agreement for a Toronto Property Management company to manage your property, immediate marketing measures are taken to ensure the property is occupied without further delay. Owners with minimal knowledge of pricing trends in the rental and leasing industry rely on qualified managers to independently assess their properties and give correct valuations. Because prospective tenants prefer to view different properties before making choices, private landlords are often unable to find suitable tenants within a short time. Hence, the need for property managers.
Since tenants regularly contact managers for information concerning properties for lease, management companies may have lists of potential customers interested in renting specific properties, saving time for both owner and tenant.
2. Tenant Screening
Expert property managers are aware that profit is generated only when paying tenants occupy a property. Tenants should also care for the property, so it is always in rentable condition. This aspect makes owning and running a property an expensive and time-consuming experience. To ensure a property is rented to responsible tenants, a management company usually runs a background check to establish the tenant’s credit references, criminal records, and eviction history, helping the landlord screen tenants with poor rental history or criminal backgrounds.
3. Avoid Legal Issues
Current legislation requires that the tenant signs a tenancy agreement before occupying an apartment or building. A management company will, therefore, prepare a lease agreement on behalf of the property owner and amend it whenever necessary. A lawfully drafted agreement should plainly state the duties of the tenant and the property owner. Because staying up to date on tenancy laws can be a lot of work for private landlords, hiring a competent company to manage your property in accordance with the law is advisable. If any complications arise, including when a tenant wants to terminate a tenancy agreement, the company will also facilitate the process to properly terminate the contract.
4. Attract and Retain Good Tenants
As soon as an owner has found the best tenants, retaining them is important. Usually, tenants vacate properties that lack quality service. Employing a property manager allows a landlord to rest assured that tenants’ needs will be swiftly handled, in turn, reducing vacancy rates. In case of an eviction, the management company will also make sure the building is reoccupied within the shortest time possible. An experienced, capable manager will communicate with tenants on a regular basis to establish a friendly environment and detect and solve problems. This also leads to higher retention rates.
5. Increased Property Value
Preserving the property value is a constant deliberation for all investors. For this reason, management companies conduct routine property checkups to ensure that the property is well maintained. They will take immediate action if repair or renovation is needed. The precautionary inspections and repairs also protect the assets, so the property stays competitive in the market.
Although owners give up a small percentage of profits to cover the expenses of hiring such a company, employing the services of a management company lets landlords enjoy the benefits of property ownership as well as personal freedom. Owners who have various property investments, lack management knowledge, and/or just don’t have time to manage their property should consider hiring property managers.