Having an extra property that you can rent is arguably a great source of passive income. In fact, statistics show that the demand for rental properties continues to rise annually, making it a great opportunity for potential landlords. However, owning a rental property demands commitment, especially when it comes to your time and effort. The hassle of owning a rental property even makes it seem like a second job.
So if you have a property on your own and you have the time and effort to exert, you can always choose to manage it yourself, especially when you live nearby. However, if you don’t have the luxury of time, then it’s best to resort to those who offer property management. (1)
Not only will having a professional property manager, especially those who offer all inclusive property management fees and take a lot of stress and hassle off your shoulders, but they can also ensure that your property looks aesthetically appealing to the point that it’ll always attract potential tenants, bringing in plenty of revenue.
Additionally, here are three ways property management can increase your profit:
- Attract high-quality tenants
If you’re a first-time landlord, keep in mind that tenant screening isn’t only a lengthy process but it’s also a complicated one. Surely, you don’t want to end up with a bad tenant––those who pay their rent late or damage your property.
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Fortunately, by partnering with a property manager, you’ll rest assured that the tenants living in your property will be reliable and verified, such as renting for the long term, paying rent on time, has little or no wear and tear of the property, and cause fewer problems to their neighbors and yourself, inviting a steady flow of income on your part. (2)
Since a reputable property management company has been in the industry for a long time, then they can help you with the background check of any potential tenants. Also, if you render the tenant-screening process to a property manager, then you’re able to avoid any possible rental scams, helping you avoid losing money in the process.
- Helps you stay on the right side of the law
There are plenty of landlord-tenant laws that can be complicated on your part, especially if you don’t know anything about the specific law. Unfortunately, having little knowledge of the law does not exempt you from them. Failure to do so may result in hefty fines.
However, having a property manager—given that they’re already experienced in this field—can help you save your money. For instance, if your property manager can save you the trouble of going through one eviction notice due to the violation of any laws implemented in your state, then you’ve already saved money that can be spent on your property to attract more tenants, inviting more income on your part. (3)
- Always ensure that your property is vacated
There are plenty of factors that affect why your property has been vacant for too long. For one, you may have to make the necessary adjustments and renovations when the time comes that a tenant wants to move in. This can be a timely—as well as a costly—effort on your part as you’ll have to renovate your place to suit any tenant’s needs. But a good property manager will prevent these factors. For one, your chosen property manager can do the following:
- Make the property stand out: A good property manager knows how to spruce up or apply the latest trends and cosmetic improvements that need to be done to attract tenants to your property, maximizing your revenue.
- Set the market rent rate: More often than not, tenants won’t rent property due to its rent––it may be too expensive. But a professional property manager will be able to determine the right price, considering the neighborhood your property is in as well as the demand. Knowing these crucial factors only comes if you’re adept in the local real estate market.
- Market your property efficiently: Since they have experience in the field, it’s expected that a professional property manager has come up with plenty of ads. This means that they exactly know what to say and where to place these ads in order to attract potential tenants. Also, since they’ve partnered with advertising companies in the past, they can also negotiate a better rate for your ads, helping you save money. (2)
If you have a rental property or you’re an aspiring property investor and you want the property to become a source of passive income, then one of the best decisions you can make is to hire a property manager. This is especially true if you don’t have the luxury of time but want to make something out of your property. A good property management company gives you freedom and less stress on your part, which is perhaps the definition of a passive income.
- “6 BENEFITS OF HIRING A PROPERTY MANAGEMENT COMPANY FOR YOUR PROPERTY”, Source: https://halespropertymanagement.com/buying-selling-renting/6-benefits-of-hiring-a-property-management-company-for-your-property/
- “8 Benefits Of Using A Property Management Company”, Source: https://www.bricksandagent.com/blog/benefits-of-using-property-management-company
- “Four Ways a Property Manager can Increase your Profits and Improve the Value of your Investment”, Source: https://www.mayfairpropertymanagement.com/blog/four-ways-a-property-manager-can-increase-your-profits-and-improve-the-value-of-your-investment