Residential rental property owners quickly learn that owning and managing a rental property on their own can turn into a full-time job. One of reasons some property owners don’t use a property manager is the cost. While property management comes with a cost, most rental owners find that the benefits of a good property manager far outweigh the costs. Typical property management fees usually range between 6-8% of gross monthly income depending on the type of property being managed. While this is a fee that eats into a rental owner’s net income, the cost is usually worth it when all the things needed to rent and manage a property are considered. Here’s a look the services a good property management company will provide to owners that will save them both time and money.
Marketing the property
Two of a landlord’s biggest objectives often are attracting a large pool of potential tenants and getting a property rented quickly. A property management firm worth its salt has professional experience in marketing that can help drive demand for a property so that it is rented quickly and for top dollar.
Screening and qualifying tenants
Likewise, attracting quality tenants is imperative for owners of rental property. Bad tenants cost money, while good tenants that stay are profitable. The difference could be worth thousands of dollars to an owner of a rental property, especially for expensive properties in San Jose and Santa Clara County. A property management company that provides good tenant screening processes provides a lot of value.
Maintenance and inspections
Any ongoing maintenance needs or inspections that are required are handled by the management company. An owner needn’t make trips to the rental property for maintenance or inspector appointments – the property management company takes care of this for you.
Quick Communication and follow-up with tenants
Property management companies are often more responsive to tenant questions, notifications or complaints than the owner of a property would be. A rental owner with a 9-to-5 job can’t always drop everything at work to take a tenant phone call. For a property management company, this is their job.
24-hour emergency service
Along the same lines, no owner of a rental property wants to get a midnight phone call from a tenant who’s got a plumbing problem or hot water tank that stops working. A property management company will provide around-the-clock 24 hour emergency service so the owner will never get that call.
Rent collection and payment set-up
Aside from emergency phone calls, one of the other common complaints among owners of rental property is the issue of collecting rent. A tenant might be late in paying, and it makes the owner feel like they have to chase down the tenant for rent. With a property manager working for you, there’s no chasing rent down.
When it comes to property management, it’s also common for a management company to provide easy payment options for tenants. The tenant may pay by setting up automatic payments from their checking account.
Pre-qualified service providers and contractors
When a property requires work, the pressure is on the property owner to find trustworthy contractors to supply materials and do the work. Looking for recommendations and lining up quotes is tedious. When you have a property management company working for you, however, it will likely have a network of pre-qualified providers that can both give the property owner peace of mind and usually save money as well.
As passive an investment as real estate can be, there is always going to be some work involved keeping the books. Bills need to be paid. Costs need to be recorded. Often, a property management company can provide secure online access to financial records that the owners of a property can easily access at any time.
Remember: It might seem like an added expense, but using a good property management company can pay for itself in time and money savings for a property owner.
Valley Management Group is a San Jose property management company that has been providing trustworthy and affordable property management services for more than 35 years and has received high ratings from both owners and tenants. If you own a rental property in San Jose or Santa Clara County and need property management services, contact them for a free property management quote with one free month of services at 408 296-4200 or email [email protected].
Reviewed and Approved by Lloyd Kipp
Property Manager and Owner of Valley Management Group