While some real estate investors may be hesitant to hire a property management company because they fear a lack of involvement, it can present many benefits and be lucrative in the long term. Below, you can explore the various advantages of working with a property management company.
Searching for high-quality tenants can be an arduous process when you attempt it on your own. A property management company like our team at Castle Development Group has a streamlined screening process to locate high-quality tenants. We help you build and maintain positive relationships with your tenants so that they communicate problems and request maintenance when necessary. This can help preserve your property’s condition so that you can get the most out of your commercial property investment.
Finding high-quality tenants is also essential when the lease period is over. The transition between tenants is much easier when you have ones that are responsible and understand the terms of the conditions they agreed to when they first signed a rental agreement. They can move out on time and you can fill vacant spots with new tenants that pass our screening process.
Our property management company has reviewed thousands of commercial tenant applications, so we know a good one when we see it. We can easily identify red flags that signal a poor tenant, and we keep a watchful eye out for rental scams. We also evaluate multiple factors, including a tenant’s criminal history, income level, and credit score to help you determine the risk of accepting them.
More Freedom for You
By hiring a property management company, you can access more freedom than you’ve ever had before. You don’t have to live near the property you own, so you can move to any city or state that you want. You can rely on the property management company to handle any issues that arise. The team will keep you in the know as they devise solutions to ensure the satisfaction of you and your tenants.
With a dedicated group of people managing your property, you can grow your career as a real estate investor. There will be ample opportunities to invest in other properties, and you can similarly enlist a company to manage them for you. By hiring a property management company, you can also lift some of the stresses of managing real estate off your shoulders. You won’t have to deal with tasks like finding contractors to make repairs, collecting rent, managing evictions, and handling late-night emergencies.
Even the day-to-day tasks of property management become much simpler when you have a reputable management company on your side. The company becomes the primary point of contact for tenants to voice their complaints. For example, imagine you have a tenant that presents concerns regarding noisy neighbors. A property management company can solve these complaints on your behalf in an efficient and amicable manner, and you won’t even have to know about them.
Fewer Legal Problems
As a real estate owner, there are many legal nuances to consider. Complying with state and federal laws can become confusing, so it can be helpful to partner with a company that knows all the specifics. Here at Castle Development Group, we understand fair housing laws and landlord-tenant laws to help you avoid lawsuits. We ensure to comply with all legal standards when signing leases, terminating leases, collecting security deposits, collecting rent, performing inspections, and maintaining safe living conditions for tenants.
We also comply with all legal requirements as they pertain to the tenant screening process. We select tenants based on the details in their application so that you can avoid discrimination lawsuits. If an issue arises with a tenant, we handle evictions with confidence.
Did you know that in December 2021, only 92% of households paid their rent on time? This figure was a significant drop from the 98% of households that paid their rent on time in April 2019. When you hire a property management company, you don’t have to deal with slow payers.
This kind of organization knows how to streamline the rent collection process. You don’t have to worry about being too permissive or getting tenants that will walk all over you, as a property management company will establish a stern authority. The company’s team will do everything they can to keep a steady flow of rental income. If necessary, they can handle each slow payer on a case-by-case basis and issue eviction notices if necessary.
Less Money on Maintenance and Repair Costs
A property management company commits to preserving the value of your property. It generates income for itself when your property is in good condition, so it does everything it can to make your property a nice place to live. This kind of company can spot issues before they develop into serious problems, as it performs regular inspections and ensures everything is in working order.
If a property management company finds a problem, it has a reliable network of contractors to contact. These contractors perform high-quality work to create long-term solutions. You may even get a discounted rate for the services that contractors perform because of the relationships they have with your property management company.
Shorter Vacancy Periods
A long vacancy period is every real estate owner’s worst nightmare. Empty property means that you aren’t bringing in rental income, which can spell bad news for your wallet. A property management company does everything possible to shorten the vacancy period that your property endures. When a tenant moves out after their rental period expires, a property management company jumps into action.
It inspects the property to determine what cosmetic and functional improvements are necessary to make the property more appealing. It also studies current market conditions in your area to help you settle on a competitive asking price. A property management company can even advertise your property for you using effective marketing techniques. When a call comes in, a team member will consult with the client and work to close the deal efficiently so that you can once again bring in rental income.
If you’d like to partner with a property management company, feel free to contact our team at Castle Development Group. We can help you be a more productive real estate investor and let you take a hands-off approach to property ownership while still generating impressive returns.