Although you have to pay a property management company to handle your property investment, the fee is a wise investment. You can make more money or avoid losses if you let a property management company handle your rental property than if you do it alone. Below are some of the ways a property management company can help you.
Avoid Tenant Lawsuits
You can lose thousands of dollars if a tenant sues you. Such a lawsuit can cost you money even if you win in the end; don’t forget that you may have to pay defense lawyers and spend time on the case. A professional property management company is more likely to prevent and deal with tenant issues than an amateur.
Here are some of the things that property managers excel at and that can help you avoid tenant lawsuits:
- Maintaining the property to improve tenant satisfaction
- Screening out problem tenants
- Settling tenant disputes before they flare up
- Observing real estate laws to avoid tenant disputes
On your own, you might not even know that some of these things can help prevent tenant lawsuits. A professional property manager handles these issues on a daily basis with ease.
Filter out Problem Tenants
A problem tenant can cause you money in more ways than one. Here are some of the ways problem tenants can cause you money:
- They can damage your property.
- They can scare away other prospective tenants.
- They may be late with rent often.
- They may sue you at the slightest provocation.
Luckily, property managers have the skills and experience to spot and lock out such tenants. Your property manager will conduct backgrounds checks, ask the right questions, and review documents of potential tenants to weed out the difficult ones.
Decrease Tenant Turnover
As a landlord, you make more money when you attract and retain good tenants than when you have tenants come and go all the time. Here are some of the ways a high tenant turnover can cost you money:
- You have to spend money to advertise your property.
- You have to spend money to screen new tenants.
- Your property may remain vacant for some time.
You probably don’t have the time to prevent a high tenant turnover. Property managers, on the other hand, can help you get and retain good tenants because the property managers also lose money if your house is vacant.
Provide Tax Benefits
Property management fees are tax deductible. If you decide to manage your properties, you won’t have any expenses to report, and you won’t enjoy any tax deductions. If you contract a property management company and they charge you fees, you have something to report and deduct. Therefore, the property manager route is cheaper if you factor in the deductions.
Keep Financial Records
Any savvy business person will tell you that you must keep good financial records for your business to prosper. Fortunately, a property management company will also help you keep financial records and update them constantly. Use the records to monitor your business, apply for financing, or even determine whether the return on investment is worth it.
Save You Time
Lastly, a property management company also saves you time, and you can use the time in other business endeavors. You can run your home business or even keep your day job as the property management company handles the day-to-day issues that may crop up at your rental property.
As you can see, you stand to gain a lot if you contract a property management company to handle your property rental business. At MacPherson’s Property Management, we can give you professional service and help you grow your investment. Contact us today to discuss your property and how we can help you care for it.