There may be several reasons you are looking to rent out your current property instead of selling. Whether you are interested in supplementing income from a rental property, or saving for your financial future, partnering with a property management company is the best option to protect you and your property.
What is a Property Management Company?
A property management company is a third-party agency hired by a landlord or property investor, to manage the everyday responsibilities of a rental property. The types of responsibilities delegated to these companies vary based on the type of property being managed, as well as the specific needs of the investor/landlord.
Before selecting a company, there are several factors to look for. First, it is important to check the validity and success of all proposed management companies. Take some time and vet them out on Google or Social Media. Make sure to check that all their information and business claims are real and verified. We recommend reading the company’s Google Reviews to ensure they are a legitimate company and easy to work with. You can see Galvan & Gardner’s reviews here (link). We also suggest meeting with company candidates face-to-face to ensure a partnership is in everyone’s best interest.
Responsibilities of a Property Management Company
When a property management company begins overseeing your property, they take on many responsibilities including the management of rent. It is their duty to set the proper rent price of the property. They base the price on several crucial factors. First, they must set a price that will be appealing to future tenants. They must also take into consideration neighboring market trends, monthly maintenance fees and management fees. Utilizing a property management company for this is very important because they have the expert, in-depth knowledge of the most current real estate trends. Their talent of strategic pricing will make you the most money as an investor.
Collecting rent from tenants will also be handled by your property management company. They will set rent collection dates to be sure rent money is obtained on-time with no issues each month. If a tenant does not pay their rent on time, it is the property manager’s job to enforce late fees to prevent future late payments.
It is also important to note that your property management company will strive to keep your property competitive in the market by adjusting rent rates each year based on current state and federal recommendations.
Management of Tenants
Like all property management companies, Galvan & Gardner takes full responsibility for your current and potential tenants. We consider ourselves experts in finding and vetting out quality occupants for your property. Did you know that a knowledge of marketing and advertising is essential to finding the right tenant? Perfecting a technique for finding responsible and reliable people to occupy your property takes time and a lot of trial and error. At Galvan & Gardner, we have had years to get it right and we celebrate continued success in this area. We can even offer our expert tips on making your property more appealing to the right type of tenant.
The process of screening tenants varies from company to company. It is important to select one that utilizes a professional, verified credit check, criminal background check as well as rental history verification. This information is expertly analyzed to determine if the applicant will be reliable with rent payments and care of the property.
Another important benefit of utilizing a property management company is they will handle all tenant leases. It is their responsibility to determine appropriate lease terms such as the length of occupancy, and any other necessary clauses needed to protect you and the tenants. After establishing the best lease terms possible, your management company will also establish an agreeable security deposit that will be obtained and held for the duration of the lease.
If any of the terms in the lease are not met by the tenant, the property management company is relied upon to handle evictions. They will have a vast knowledge of the proper steps required to file and carry out an official eviction process. Eviction situations can be very delicate and if not handled well, can end up costing thousands in official court costs. Letting people who know how to do this kind of work will most certainly take the load off you, as the owner.
Regular move-ins and move-outs are also coordinated by the management company. Upon move-out, the property must be checked thoroughly to make sure it has been left in the same condition in which it was first occupied. Move-out maintenance is coordinated by the management company and usually includes professional cleaning, wall repair and paint, and sometimes new carpet. A good property management company will have an extensive array of repair and maintenance affiliates in which they have great relationships. These convenient and friendly connections will end up saving you money and time. Hopefully, if the company did a good job, your quality tenant left your property in BETTER condition than move-in.
Management of Physical Property
Property management companies are required to take care of all on-going property maintenance needs and upkeep, even when vacant. This includes preventative maintenance and continual check-ins. Remember, it is imperative that your management company handle all extermination emergencies and prevention. They must regularly perform leak checks and filter replacements while attending all landscaping needs. The removal of trash and snow, as well as water and sewer arrangements, should also be delegated to your management company.
When there are any issues with your property or urgent repairs needed, the property management company must fix the problem in a timely manner. The problem must also be fixed to the best of their ability. Watch out for any company who doesn’t send in a professional to assess structural issues with your property.
Before renting out your property, ask yourself, “How much do I know about Landlord-Tenant Law?”. If the answer is not much, then you should utilize a property management company. They have a deep knowledge of all laws pertaining to landlord and tenant relationships. There are laws behind everything when managing a rental property. In the beginning, you must consider privacy laws when screening potential candidates. The handling of security deposits and lease agreements also come with a multitude of laws. And of course, there are several legalities involved when it comes to breaking a lease or evicting a person from a property. It makes sense to partner with a property management company who works with these laws every day instead of trying to take them on alone.
Be sure to ask yourself how much time you have to take care of the banking, budgets, record-keeping and taxes that go along with managing a residential, industrial or retail property. If you don’t have the time, a property management company will. They are educated and experienced in handling all ledgers concerning your property, so you can sit back and enjoy the investment. Interested in learning more about what investing can do for you? Call us a call today at Galvan & Gardner and we will be happy to help you on your journey.