The decision to hire a property management company isn’t always an easy one. While it can be the best long-term option for an investor, it may not be the best option for a first-time landlord!
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The key to choosing the right management company for you is to understand what each can offer and how they can help you reach your goals. Many people invest in real estate because they want to build passive income. A property management company can help you attain this goal. If you have the right manager, you can expect a solid return on your investment and ultimately enjoy the benefits of passive income.
1. Finding and Screening Tenants
A good property management company in Chattanooga will advertise your rental, screen applicants, collect the security deposit, sign the lease and make sure everything is in order for the new tenants to move in. After that, they will make routine checks to ensure that the tenants are taking care of your property. If problems arise with a tenant, they are trained to handle these situations appropriately. They know how to apply the law to protect your interests.
2. Taking Care of Maintenance Issues
Your property management company will take care of maintenance issues quickly. If a repair isn’t an emergency, they will contact you first for approval before moving ahead with it. They have a team of trusted contractors who can do the job right at reasonable prices. Plus, they can supervise any work being done by third-party contractors or vendors so you don’t have to worry about getting overcharged or receiving poor quality workmanship.
3. Staying On Top of The Numbers
The first thing a property management company will do when they take over management of your rental property is to review the numbers with you. This is an important step because it allows both parties to understand the financial picture for each property. It’s also important because it allows you to express what your goals are for each piece of investment real estate so that the property manager can help you meet those goals.
4. Maximizing Rental Income
A property manager will ensure that your tenant pays their rent on time each month. If they are late, they will be notified immediately. If they do not pay their rent, they will be evicted immediately. A property manager will also review the lease and notify you when it is time to increase the rent to keep up with current market conditions in the area. This helps prevent your rental from going vacant or losing money each month due to an outdated rental price.
5. Adhering to Local Laws
Chattanooga has very strict laws governing rental properties, from allowed security deposits to what reasons you can evict a tenant. Attempting to handle rentals without understanding these laws is a good way to get into trouble. A good property manager will know all of these laws and will ensure that your rights as a landlord are protected. They will also make sure that all of the documentation for each tenant is in order.
How Much Time Will You Save?
A good property manager will do more than collect rent from your tenants, they will handle all the day-to-day needs of your rental properties including finding new tenants when necessary, maintenance and repairs as well as handling any complaints or questions from current tenants. Imagine how much time you will have back in your life once you relinquish the tedious task of home management and focus on all the other aspects of your business.
The average property manager can rent property for you 3 – 5 times faster than you can do it yourself and will carry core insurance that protects you in the event something goes wrong. Most importantly, a good property management company will have a team in place that allows you to be as hands-off as possible, keeping your time and money in your pocket where it belongs.