Many property owners do a great job of running their rental units and enjoy doing all of the DIY maintenance that is constantly required. But when you invest in a property are you getting the best profit margins out of your investment? All rental property owners must be vigilant about their bottom line and ensure they are maximizing the income from their rental property. You could save yourself a lot of time and money if you hired the services of a trusted Colorado Springs property management company.
Sometimes rental property owners might not have the necessary expertise or experience in the industry and it could end up costing them a fortune on unforeseen expenses. Here are a few ways that a property management company will save you both time and money.
Reasons to hire a property management company in Colorado Springs?
Keeps Your Unit Occupied
Property managers can assist with vacancy prevention. The longer a property sits vacant the more money you lose. This is usually cited as one of the top reasons that property owners start searching for a property manager in the first place. They are leaking money with every day that goes by that their property stands empty. Renters will always be in touch with their property management company because they are looking for a new home and they go to the source. As an individual you don’t have this kind of pulling power from your home study. Property managers have a marketing budget to promote the units on their books. They can get a lot of exposure for your property really quickly and effectively. They are also aware of the competitive rates for rentals and will price your unit correctly to get the right tenants.
Prevents Tenant Turnover
The property manager is also looking to place qualified tenants who are going to pay on time and look after the unit. Tenants who don’t pay and have to be evicted cost a lot of time, money and patience. Your property manager can respond to tenant’s issues, complaints or maintenance problems quickly which keeps them happy and reduces tenant turnover. Sometimes it’s just not possible for you to leave your job to sort out your tenants pressing issues, and this could sour the relationship and leave you with a vacant unit. It’s your property managers job to resolve these issues timeously.
Conducts In-Depth Tenant Screening
Another time consuming, potentially costly element is the tenant screening process. You need to have the resources to conduct intensive criminal background checks, credit rating, rental history, conduct employer verification and follow up references with past landlords. A property management company will know the right questions to ask. When you hire a property manager, it is an insurance against violating the Fair Housing Act which could cost you in hefty fines.
Ensures On-Time Rent Collection
Your Colorado Springs property management company will collect the rent on time, execute any late notice fines and ensure your cash flow remains constant. Your property manager can draft leases and handle any legal issues so you are spared the stress. You don’t have to deal with problematic tenants at all. Some property managers even have a real estate attorney on their staff to handle all legal matters and to keep up with the changes in the laws governing rental properties.
Offers You Massive Maintenance Savings
A property owner should set aside 1-2 months rent annually to be used for maintenance. Your property manager can save you on these maintenance costs because they have a list of trusted contractors whom they have worked with successfully over the years. These vendors often give property management companies lower rates and superior service because of the volume of business they are given and due to the long established relationship. A well-maintained unit not only saves on yearly maintenance costs but improves the value of the property in the long term. Property managers often focus on preventative maintenance as they are doing regular site visits to the unit and can spot any potential problems. People are normally really good about looking after a property when they know there are going to be regular inspections.
Your property manager is also going to get you reduced costs on a number of other services you might end up needing, including, cleaning services, pool maintenance, carpet cleaners, attorneys, accountants –you name it!
Related article: Planning & Budgeting for Property Maintenance on Your Investment Property
Free Time
One of the best things that your property manager is going to give is –time for yourself. You don’t want to have to do a full day of work only to spend all of your evenings and weekends dealing with your tenants and maintenance issues. You can sit back and relax knowing that your investment is in good hands.
Investing in a Colorado Springs property management company is going to increase your profit margins considerably, improve your properties resale value and give you peace of mind (and a lot more free time!)