A competent property manager with experience in tenant relations can add significant value to your investment. This is why most seasoned real estate investors will tell you that a good property management company is worth its weight in gold.
Below we’ve listed the benefits you can expect when you hire a quality property management company like The Realty Medics.
9 Benefits of a Property Management Company
1.) Higher-Quality Tenants
Think of tenant screening as the moat and drawbridge around your castle. Though it’s certainly possible to remove a bad tenant from your home, it’s a real hassle. Now add on government-mandated eviction bans, and it’s clear to see that you’re way better off not accepting bad tenants in the first place.
A thorough screening process results in reliable tenants who:
- Pay on time
- Rent longer
- Put less wear-and-tear on the unit
- Generally cause fewer problems
An experienced property management company has seen thousands of applications. They know how to quickly dig for the real facts about rental candidates, and they know how to analyze that information for warning signs.
By letting a property management company handle the screening/application process, you’ll shield yourself from rental scams targeting rental property owners, as well as discrimination lawsuits resulting from inconsistent screening processes.
This kind of property management experience takes time, and because it means avoiding bad tenants, scams and lawsuits, it’s arguably one of the most significant benefits a tenant management company can provide.
2.) Fewer Costly and Time-Consuming Legal Problems
Veteran landlords know that it only takes one troublesome tenant to cause significant legal and financial headaches. A good property manager is armed with knowledge of the latest landlord-tenant laws and will ensure that you’re not leaving yourself vulnerable to a potential lawsuit.
Each state and municipality has its own laws. Coupled with various federal laws, these regulations cover a number of areas, including (but not limited) to:
- Tenant screening
- Safety and conditions of the property
- Lease addendums
- Terminating leases
- Handling security deposits
- Rent collection
Avoiding a single lawsuit can more than pay for the property management fees, as well as spare you time and anguish.
3.) Shorter Vacancy Cycles
A property manager will help you perform three critical tasks that affect how long it takes to fill your vacancies.
- Improve and prepare the property for rent: A property manager will suggest and oversee cosmetic improvements that maximize income.
- Determine the best rent rate: If the rent is too high, you’ll be stuck waiting. If it’s set too low, you’ll lose money every month the tenant is in the unit. Determining the optimal price requires deep knowledge of the local market, data on recently sold comparables, and access to rental rate tools.
- Market your property: An experienced property management company has written hundreds of ads, so they understand what to say and where to advertise in order to get a larger pool of candidates in a shorter period of time.
- Additionally, their volume means they can usually negotiate cheaper advertising rates online and offline.
- Lastly, they’re familiar with home sales, so they know how to close when they field calls from prospects and take them on showings.
4.) Better Tenant Retention
It’s easy to see the effects of lost rent, but high tenant turnover rates create other— equally serious—problems, too. The turnover process involves
- Thoroughly cleaning the property
- Changing the locks
- Painting the walls
- Installing new carpeting and completing small repairs—not to mention all the effort associated with marketing, showing, screening and settling in a new tenant.
This time-consuming and expensive process can be averted by keeping tenants happy and well cared for. A good property management company will have a time-tested tenant retention policy that ensures happy tenants with lengthy stays in your rental properties.
These kinds of programs require a consistent, systematic approach, which is exactly what a good property management company can provide.
5.) Tighter Rent Collection Process & Easier Evictions
The way you handle rent collection and late payments can spell the difference between success and failure as a landlord. Collecting rent on time every month is the only way to maintain consistent cash flow, and your tenants need to understand that this is not negotiable.
Hiring a property manager puts a buffer between you and the tenant. It allows the property manager to be the bad guy. The one who has to listen to excuses, chase down rent, and possibly evict your tenants.
If you let them, your tenants will walk all over you. They have to be trained to follow every part of the lease or deal with the consequences. Property managers have an advantage, because tenants realize that they, unlike the owner, are only doing their job and are obligated to enforce the lease terms.
Many property managers will tell you that it’s considerably easier to manage other people’s units rather than their own for precisely this reason.
Strict laws govern the eviction process. So doing it wrong, or trying to evict a “professional tenant,” can be a major fiasco. A good property management firm knows the law and has a good process for obtaining the best possible outcome, given the circumstances. Never having to handle another eviction can be a compelling reason to consider hiring a property management company.
6.) Assistance with Taxes
Property management fees are tax deductible, as well as some other expenses involved in owning and renting residential property. (Note: The Realty Medics can provide an itemized cash-flow analysis broken down for the year or on a monthly level, if desired). This saves owners the significant time and hassle of saving every receipt.
7.) Lower Maintenance and Repair Costs
Timely and effective maintenance and repairs keep tenants happy and preserve the value of your investment, which makes them a critically important part of landlording.
By hiring a management firm, you gain access to their in-house maintenance staff, as well as a network of licensed, bonded, and insured contractors who have already been vetted for good pricing and quality work.
This can translate into significant savings compared to going online and hiring a handyman yourself. Not only is the firm able to get volume discounts on the work, but they also know the contractors and understand maintenance issues, so they’re capable of intelligently supervising the work. (Note: All vendors hired by The Realty Medics are licensed, bonded, insured, and the work is warrantied.)
8.) Increase the Value of Your Investment
Preventative maintenance is critical, and the best way to achieve it is by putting systems in place that can catch and manage property maintenance and repair issues early—before they grow into larger and more costly problems. This requires a written maintenance check program, detailed maintenance documentation and regular maintenance visits.
A property management company can also offer suggestions and feedback on upgrades and modifications in terms of how they’ll affect the rent you can charge, as well as their impact on maintenance and insurance.
9.) Personal Benefits for Owners
- Less stress: You avoid dealing with middle-of-the-night emergencies, chasing down rent, evicting people from your property, tenants who wreck your property, rental scams, lousy vendors and piles of paperwork.
- More freedom: You can live and invest wherever you want, without the constraints of needing to be near your properties. Additionally, you can live and travel free of the need to always be available for your tenants. Once you’ve found a good management company, it doesn’t matter if you live in the same state as your properties. Some landlords live in other countries and simply collect their check every month without ever seeing the property.
- More of Your Time Back: Time is money, and for many investors, their time can be more profitably spent in areas other than servicing their properties. When you focus on asset management, you’re working ON your business. When you self-manage your own rental properties, you work IN it. Additionally, you have more time to spend with family or friends doing the things you truly love to do.
Looking for a Quality Property Management Company?
Of course, this is an ideal scenario. These results can only be expected if a management company is competent, trustworthy, and also a good fit for your property.
Be aware that a poor choice of a property management company can produce its own headaches. If you need help managing your property and tenants, The Realty Medics can help! As the nation’s leaders in “Rocket Science Renting”, we’ll help you keep your life simple by handling all the complex work of property management for you.
Imagine knowing that your property is running smoothly, with no hiccups or glitches. It’s what we call property management peace of mind. Contact us today to learn more or get started.
Orlando Property Management Hiring Guide
BASICS OF PROPERTY MANAGEMENT
- 11 Questions for Determining if You Need a Property Management Firm
- Property Management Services: A Complete List
- What Are the Benefits of Using a Property Management Company?
WHAT TO LOOK FOR IN A FLORIDA PROPERTY MANAGEMENT COMPANY
- Property Management Fees, Part I
- Property Management Fees, Part II
- Handling Tenant and Owner Funds
- Setting and Collecting Rent
- Property Maintenance and Repairs
- Property Inspections
- Tenant Marketing and Retention
- Tenant Screening
- Examining the Organization: Background, Qualifications, Portfolio
- Examining the Organization: Size, Staff, Customer Service
WHAT TO LOOK FOR IN A PROPERTY MANAGEMENT CONTRACT
Let us handle the rocket science of renting for you!
The Realty Medics
10027 University Blvd
Orlando, FL 32817
Phone: (321) 947-7653
FAX: (407) 965-3312
The Realty Medics are the nation’s leaders in “Rocket Science Renting”: Rocket Science Renting is about keeping your life simple by letting someone else handle the complex work of property management for you. It’s knowing that your property is running smoothly, with no hiccups or glitches. It’s hyper-responsive customer service that gives you property management peace of mind. It’s advanced technology that could only be designed by a former NASA engineer like our owner, Ben Sencenbaugh. And it’s knowing that you’re always getting maximum value and ROI for your investment.
More from the guide
Areas We Serve in Florida
We’re happy to serve many of the surrounding areas here in Central Florida. Below are the current cities and locations that we operate in. If you don’t see your area listed, don’t hesitate to reach out to us and we’ll see if we can work together.
The Realty Medics Guarantees
We are very proud to be the highest rated and most reviewed Property Management company in Central Florida. We guarantee results and have the lowest rates to support our results-driven philosophy.
14 Day Rental Guarantee
If we don’t rent your home in 14 days you get one month FREE management.
90 Day Money Back Guarantee
If you, the Owner, is unhappy for any reason, we will refund your management fees
12 Month Tenant Guarantee
If a tenant is removed in first 12 months, We find you a new tenant free of charge.
Pet Damage Guarantee
If a pet causes any damage to the property, We will cover this damage above the security deposit up to $1000.*