Why hire a Property Management Company?
When you are renting your home, you are essentially entrusting your largest asset to a tenant and face risks that the home may not be well taken care of, or rents might not be paid. In most cases, Property Owners find that the benefits of hiring a Minneapolis Property Management company significantly outweigh the costs. The benefit becomes even more apparent if you have a management company that provides a comprehensive marketing service, extensive internet advertising, a proven tenant screening process, and a network of contractors providing low-cost maintenance. In the end, the shorter vacancies, higher quality tenants, and lower cost of maintenance all will significantly enhance your cash flow, and also lower the risk of damages to your most valuable asset.
What Does a Property Management Company Do?
Management companies deal directly with prospects and tenants, and will save Property Owners considerable time and effort marketing your rentals, collecting rent, handling maintenance or repair issues, responding to tenant complaints, and even pursuing collections or evictions. A good management company brings its know-how and experience to your property, experience that represents hundreds of unit years of management, giving you the peace of mind knowing that your most valuable investment is in the hands of an experienced manager.
You should consider hiring a property management company if:
You’re not interested or able to perform hands-on management.
Some landlords look forward to the challenge of finding good tenants and the rewards of maintaining a safe and attractive property on their own. But if you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring help to manage your property.
If you manage your own rental, you are subject to a myriad of Local, State, and Federal Laws that affect your and your business, including FCRA, HUD, EPA, FTC, local Rental Licenses, Fair Housing, Etc. In Fact the laws governing rental properties are extensive, and in some cases confusing. A Good Management Company can help you navigate these laws the right way and minimize your exposure resulting from non-compliance.
Your time is limited.
Even if you don’t mind the occasional 2 AM call for a plumbing leak, you may not have much time to devote to your business, especially if land lording isn’t your day job. And if you prefer to spend your time growing your business, including searching for new properties, arranging financing for renovations, or changing your business structure, then a management company may be a good way to spend your money. Late Rent? A Management Company can follow up on delinquencies much more efficiently. Good Management companies provide automatic ACH/EFT rent collection making the process of rent collection automated and efficient.
You don’t live nearby, have any Property Management experience.
Some City Rental Licensing Laws require that you have a local manager designated if you live out of state. Hiring a Management Company can be invaluable in dealing with the many issues that you will not be able to handle when you are living outside the area. Experience is a must when dealing with Leasing contracts, Tenant Screening, and Landlord Tenant Laws. Without that experience, you will put yourself at risk, as well as discover that your overall cash flow is worse in the form of higher turnover, vacancy costs, and higher cost maintenance.