Are you managing your rental properties on your own? Are you overwhelmed or frustrated with your tenants? Here’s why hiring a property management company will make you a better landlord.
One of the best reasons to hire a property management company right now is the ever-changing nature of landlord-tenant laws in light of the COVID-19 pandemic. Without a good property management solutions, you’re more likely to violate some of these changing laws.
For example, in Houston, Texas, hundreds of landlords are filing illegal evictions that violate the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Under the CARES act, Houston landlords may not evict tenants until July 25 if their property benefits from federal subsidies, participates in federal housing assistance, or has a federally-backed mortgage.
Times are tough for everyone, and you need a tenant’s rent to pay your mortgage. However, violating the CARES act (and future potential laws) will hurt you in the long run. With the CARES act in place, tenants have legal recourse to sue you for illegally evicting them, even if the courts accept your filing.
Property management companies – like Houston’s Green Residential – deal with new laws and regulations daily and will follow the law to the letter, no matter how quickly laws change. You’re much safer (legally) with a professional management team acting as your landlord.
Every landlord wants to find the perfect tenant, and sometimes you’ll find people you hope will stay forever. However, there are no guarantees. Being a landlord requires plenty of patience, time, and finesse in terms of dealing with people. For example, when a tenant is late with the rent, you might have a hard time getting them to pay up. If you’re not up for the task, it’s best left to the pros.
Property management teams manage tenants on a daily basis and know exactly what to say and do to encourage cooperation and timely rent payments. They also know how to establish trusted relationships with tenants to prevent them from taking advantage of rent due dates and property rules.
Property management companies deal with multiple rental units and can usually get a better deal for repairs and maintenance. Usually, they contract with local businesses with excellent reputations because a property management company’s reputation depends on their ability to serve tenants well.
If you don’t have multiple rental units that need regular repairs, you probably can’t work out the good deals with local contractors. Contractors give good deals to management companies because it’s guaranteed work.
You can probably find people willing to manage your property, but if they don’t work for a property management company you won’t get your money’s worth. People who moonlight as property managers aren’t always reliable.
When you hire an individual, you’re taking a huge risk. They likely have other clients and/or jobs to tend to and won’t give your property the time and attention required. If a tenant needs a repair that conflicts with your manager’s schedule, the repair will be postponed.
On the other hand, a company staffs a full team of professionals who are paid to tend to properties on a full-time basis. When repairs need to get done, they’ll schedule an appointment and make it happen as fast as possible.
Your time is valuable. You don’t really want to spend every day chasing down late rent, fielding phone calls, scheduling repairs, and marketing empty units. If you did, you’d be working for a property management company. You became a landlord to make money and the best way to make your property profitable is to hire a management team.
Whether you spend your free time looking for more investment properties or recreational activities like kite surfing, hiring a property management company frees up your time.
If you want your investment properties to become reliable, long-term sources of income, hire a property management company. It’s the only way to make money as a landlord without having to do all the usual landlord duties.
Property management companies are experts at finding the right tenants, maintaining good relationships, and following all federal and state housing laws. They’re also great at handling tenant concerns and complaints in a way that creates peaceful resolution. If you haven’t hired a property management company yet, now is a great time. It’s a worthwhile investment with big benefits.