Whether you are an experienced landlord with multiple properties, or you are new to the game, you might be asking yourself if a property management company can make you money. In Colorado Springs, because of so many military bases, the rental market is constantly moving with military families rotating in and out of rental properties. We hope this article will help to show you how property management companies like Galvan and Gardner will not only help you save money, but also help to give you an inflated return on your investment in Colorado Springs.
Owning a residential property or commercial real estate property is a fantastic way to make money. However, it is never as relaxed or straightforward as it might appear at first. If you are an inexperienced property owner, you know there are many opportunities for mistakes to be made. Trusting an experienced property management company will help with all the essential moving parts required for turning a profit from your investment.
You might be asking yourself, “Is using a property management company worth it?”. The answer is yes. Property management companies are equipped with all of the in-depth knowledge required to handle every aspect of renting out your property. From tenant acquisition and rent collection, to property maintenance and legal issues, a property management company will save you valuable time and money.
Get Quality Tenants
A bad tenant can cost a landlord a lot of money. Unpaid rent, eviction costs and extensive damages can add thousands of dollars to what you would pay for the average vacancy. Did you know legal fees for evictions can cost anywhere from $300 to $1,000? If you have a few bad tenants in a row, your property could potentially be a big money loss. Galvan and Gardner, and other legitimate property management companies, have many policies and procedures in place to obtain the best possible tenants for your property. Extensive background and criminal checks are completed, as well as in depth reference checking and follow through. In general, property management companies are well versed in finding quality tenants. They have a good feel for people and can spot red flags from a mile away.
Collecting the monthly rent from tenants is imperative for ensuring that property taxes and other expenses are met. On-time rent collection is also the only way for a landlord to generate revenue. If you do not have a set process in place for obtaining on-time rent payments, you can end up with late fees or returned check bank fees (if the tenant wrote a bad check). It is the job of the property management company to place terms in the lease to prevent matters like this. If your tenant does not pay their rent on time, the property management company will start legal proceedings.
Property Taxes for Landlords
Making a profit as a landlord comes down to collecting rent consistently and knowing how to reduce the tax burden of owning a rental property. If a landlord does not claim the right number of deductions for their taxes, he or she could face stiff penalties from local, state, or federal tax agencies. Not claiming the right number of deductions may also increase the amount of tax a landlord owes. A property management company can help landlords determine which deductions to claim and help them get organized each tax season. This can help landlords save time and money, and it can also save them from having to pay fines and penalties for filing their taxes incorrectly.
Utilizing a property management company will help to shorten the amount of time your property remains unoccupied, which will cost a landlord money. Without a company, it might take weeks or even months to prepare your property to be rented again. Repairs must be made, new rental rates should be determined, and advertising to obtain tenants must be done. Reduce the amount of time between occupancy by partnering with a professional property management company like Galvan and Gardner.
Once your property is rented, your property management company will do everything they can to keep the tenants in the rental as long as possible. Long-term tenants are the most reliable and will guarantee your monthly income. Making timely repairs and addressing any tenant issues quickly and effectively all fall under the property management company’s wheelhouse. Keeping a good tenant happy is the number one priority.
Upkeep and Maintenance
Landscaping, furnace inspections, painting, gardening, and other maintenance duties can add up quickly. When you are busy, it’s hard to cross many of these necessities off your to-do list. This is where a property management company will help. Time is money. Do you have time to take off work or to travel to your property to tend to your property? If you do not have time to deal with daily tenant issues, or calling maintenance companies, hire a property management company. By letting professionals like Galvan and Gardner handle all these details, you can concentrate on other things. Many property management companies also have long-standing relationships with local contractors and can often negotiate rates, saving you more money!
Many landlords think that managing their own properties will save them money; but most quickly come to realize that not hiring a qualified company can cost them money in the long run. For more information about how Galvan and Gardner can take the stress out of property management, give us a call or contact us here!