If you plan on renting a property, you will enjoy some significant benefits. Two of the biggest are paying off your mortgage faster and gaining additional income. At the same time, managing a rental property brings unwelcome surprises. Maintaining the home, finding renters, and managing expectations can be challenging, especially when juggling other life responsibilities.
Property management companies will do the work for you. Still, you may be hesitant to hire one because they charge a monthly fee that, at first glance, seems to reduce your profits. But there are many reasons why hiring one is still worth the investment, including maximizing profits.
What is a property management company, and what benefits does it bring? Here is everything you need to know.
What is the Function of a Property Management Company?
A property management company’s primary function is to manage rental properties on behalf of clients, and their work involves many different roles.
They Act as Your Direct Contact for Renters
Property management companies act as the direct contact with renters, handling all check-in, check-out, and rental requests during their stay. By being their first point of contact, the company lightens the load and time you must devote to the property.
They also do the important work of listing and marketing your property to ensure you get maximum exposure to prospective tenants and keep money coming in. Their expertise in knowing how to market properties effectively in your area and get top dollar maximizes your returns, helping to offset their cost and even increase your profit over the long run.
They also vet applicants for creditworthiness and other criteria, ensuring you have reliable and responsible renters collecting who pay on time. Additionally, they ensure that all the amenities promised in the lease agreement are provided to renters.
Altogether, their work ensures that the rental property is managed efficiently and profitably, generating more income for you.
They Handle All Cleaning and Maintenance
Property management companies handle all the cleaning and maintenance of rental properties, including short-term rentals, such as vacation properties. They also maintain supply stock and provide additional services such as home repairs, landscaping, pest control, or other related services that ensure your property is properly maintained and stays in tip-top shape, maximizing its value.
They Help You Run Your Business More Effectively
Property management companies also help with backend needs. They organize rental paperwork, create and maintain detailed records, and provide rental and other financial advice to bring you the highest returns for your investment throughout the year. Their expertise helps you quickly identify potential problems and work with you to take appropriate action to ensure maximum returns.
They Assist with Difficult Tenants
In the world of renting, not everything goes to plan. Now and again, you may run across issues with renters, and some issues can become quite serious, even leading to a lawsuit. Theft is one common example.
Property management companies also protect you from legal problems by working with your tenants to solve issues promptly to avoid lawsuits. If the issues persist, the company will aid with eviction proceedings, ensuring that all relevant laws are followed.
They Improve Your Home’s Safety
Issues like theft can also come when the home is vacant. This is especially true if you live far away. The threat of robbery increases when the house isn’t checked or maintained correctly.
Property management companies help prevent damage to your property when it sits empty between tenants. They also conduct regular home and yard inspections to prevent break-ins or squatters and ensure that the property is always clean, safe, and secure. They also respond quickly to alarm activations and fire, and flooding. Their timely responses helped reduce home damage to help you maintain ideal profits.
How Much Do Property Management Companies Charge?
As you can see from above, the list of duties of a property management company can be extensive. So what do they charge?
On average, the companies charge between 8% and 12% of the monthly rent for long-term rentals or around 20% to 30% (client, please confirm in your area) for vacation rentals. Some companies also offer fixed-rate services and may even request that option for empty properties to cover the costs of overseeing maintenance work and visiting the properties to spot break-ins or squatters.
A third option is a guaranteed income fee model in which you receive a guaranteed rental income, and the management company takes on any losses or excesses. This option works particularly well for areas of high seasonality.
How do I Get a Property Manager for My Rental Property?
Finding a property manager is easy. The best opinion is to ask other property owners in your area, but you can also search for property management companies online and include your city name as a guide. You can then confirm with other homeowners and friends to ensure the companies are reliable.
Once you have chosen a company, ask for their references that you can contact to further confirm the company’s reputation.
How do you Choose a Property Management company?
Working with a quality management company improves the chances of getting the help you need when you and your renters need it. Here are the best ways to find a quality company in your area:
- Make sure the managers have required, up-to-date licenses.
- Compare the services, fees, and reputations of each company.
- Ensure the companies know local laws and regulations in managing rental property in your area.
- Look for companies that are insured in case of a lawsuit.
- Ask management companies about their experience dealing with different types of properties and renter issues.
- Pay attention to how well they respond to you. A responsive company shows how well they address questions or concerns. If they are slow now, they may be a bad choice for you and your renters later.
- Take a careful look at the contract to avoid hidden charges.
Is it Worth It to Have a Property Manager on One Property?
It doesn’t matter if you have ten properties or just one; a property management company is invaluable in helping you manage your rental property and keeping it safe, secure, and in good condition.
With some research, you can be sure that your rental properties are managed appropriately so that you can enjoy all the benefits of renting without any of the headaches.
Cascara Vacation Rentals: Your Quality Vacation Rental Company in Sunriver, Oregon
Cascara Vacation Rentals is a licensed property management company specializing in homes in the Sunriver area. We know what traits renters look for during their stay and what other renters offer, ensuring that you stay competitive and reach the highest level of renters. We also believe in forming a warm and inviting relationship with each renter, helping them with helpful advice and local deals so that they value you as a host and will use your home for future visits.
If issues arise, we know how to deal with them in ways that reduce lawsuits and keep interactions with renters positive. And since Sunriver is a vacation destination, we know how to limit issues like break-ins and squatters and respond promptly when accidents such as floods or damage occur.
Our extensive list of services is available to reduce your workload so that you concentrate on other aspects of your life. (Does the client have a link to services they offer to clients? I don’t see one on the site.) You provided the property. We handle the rest. Pick and choose the services you need most.