Property management is the last resort for property owners who desire the maximum returns possible from their properties. Hiring property management companies to manage your property is a wise decision to give you peace of mind and receive benefits from your investment.
If you own a residential, commercial, or industrial property, hiring Newport property management company will enable you to have maximum return on investment. And if you are not familiar with property management, this write-up will give you the necessary information to help you benefit from your property without any hassles.
What Is Property Management?
Property management refers to all the processes involved in overseeing, controlling, regulating, and accounting for a residential, commercial, and industrial property that is listed for lease. Properties that can be managed under this arrangement include apartments, condominium units, detached houses, and shopping centers. Property management focuses on all activities surrounding a piece of real estate.
Property management involves looking for tenants to rent a property, collection of rents, maintenance of the property, and keeping the surrounding of the property clean. These functions are usually provided to properties owned by other parties.
Besides, property management companies act on the owners’ instructions and power to preserve the property’s value and also generate rental income from the properties.
Functions of Property Management Companies
Considering the capital invested in a residential, commercial, or industrial property, hiring a third-party company to manage it is the way to go. Property management companies are companies with specialized knowledge and experience in overseeing the affairs of real estate properties. Leveraging the expertise of these companies will give you peace of mind and the opportunity to concentrate on other personal matters as the companies ensure that the property is well-maintained and generates commensurate rental income for you.
If you are still contemplating hiring a property management company, it would be helpful to know the functions that property management companies provide. Here is a list of the services that property managers provide to property owners.
- Evaluation of the Property for Accurate Rental Rate
Due to expertise and years of experience in the industry, property managers can help owners to assess the property and determine an accurate rental rate, which owners may not be able to decide on correctly. Property managers perform this duty by taking the following steps:
- Creating detailed records of both the interior and exterior of the property backed by still motion pictures
- Offering suggestions on repairs and improvements that can boost the property’s curb appeal and improve monthly rent at a good ROI
- Collection of data on rental rates in the area and collaborating with the owners to determine an optimal rental rate
- Enlightening the owners on the pros and cons of various policies like allowing smoking, accepting pets, and much more
- Listing the Property for Rent
Another duty that property managers undertake is marketing the property for rent. This is one of the most challenging tasks in property management. The property managers first prepare the property for rent through cleaning and enhancing the interior appeal, and taking care of the landscape and the exterior of the property to improve the overall curb appeal. To market the property for rent, the managers take the following steps:
- Creating ads targeted at marketing the property in different advertising platforms such as using the free and paid rental listing websites, MLS, signs, and fliers
- Working with other leasing agents and realtors to find a tenant
- Meeting and providing prospective tenants with the required information and rental applications
- Providing a 24-hour hotline for prospective tenants to give detailed information
- Screening and Selection of a Suitable Tenant
As part of quality property management, property managers must ensure to screen and select a suitable tenant for the listed property. The screening and selection processes are based on the following
- Identity verification, rental history, credit history, and more through a full background check
- Rate tenant using predefined criteria
- Informing clients that were not accepted
- Helping Tenant to Move In
Another function that property managers perform is helping the tenant in moving in. But before then, the tenant will be provided with a leasing agreement. After that, the move-in date will be agreed on, and the entire lease guidelines will be reviewed. Other duties of property managers include the following:
- Resolution of rental payment terms
- Agreement regarding the maintenance of the property
- Ensuring that all agreements are duly signed and executed.
- Performing a move-in inspection with the tenant and ensuring that the tenant signs a report arresting to the excellent condition of the property before moving in.
- Collection of first month’s rent and security deposit.
- Rent Collection
Collecting rental payment can be a lot of hassles for properly owners that is why quality property management covers these functions. The property manager will not only find a tenant, but the manager will also see to rent collection and remittance to the property owner. Other tasks in this regard include the following:
- Receiving rent from the tenant
- Going after late payments
- Serving tenants the pay or quit notices
- Enforcing late fees
- Enforcing Evictions
For reasons not limited to the failure to pay rent, the tenant may be evicted from the property. The roles that property managers play in the eviction of tenants include:
- Filling the required paperwork to start the eviction process
- Representing the property owner in court
- Assisting law enforcement in removing the tenant and tenant’s belongings from the property.
- Legal Assistance
Property managers also provide advice to property owners in matters that relate to the legislation regarding real estate issues. In cases concerning litigation and legal dispute, property managers can advise owners on the right action to take. They can also recommend a qualified attorney to property owners when necessary. Also, owners can rely on property managers’ experience about understanding the legislation that applies to renting properties.
- Inspections Services
Quality property management also includes inspecting the property periodically to check the condition of the property and identify what needs to be repaired and safety hazards, including likely violations. After the inspection, a detailed report will be provided to the owner for an update about the condition of the property.
- Financial Duties
Property managers help property owners to make necessary payments such as a mortgage, HOA dues, and insurance. The financial aspect of managing the property may be overwhelming for property owners; that is why hiring property management companies will help to meet up with the financial obligations required for efficient management of the property. As a result, quality property management services also include the following:
- Keeping detailed records of expenses through receipts and invoices
- Maintaining all historical documents such as inspection reports, leases, paid invoices, and warranties
- Preparation of annual reporting for tax purposes including a form 1099
- Provision of accounting property management services
- Provision of advisory service to the property owner on relevant tax deductions concerning the rental property
- Preparation of comprehensive cash-flow statements stating detailed accounts of income and expenses
- Maintenance and Repairs
Another function of property manager is to ensure that the property is well maintained through immediate repairs when necessary. A property management company must provide and supervise an in-house maintenance crew. The manager has to create a preventative maintenance policy to provide quick repairs when needed. The outdoor areas must be adequately maintained and cleaned. The maintenance job should be given to professional contractors for the best price.
- Supervision of Tenant Move-out
The duties of property management companies also involve inspecting the apartment occupied by the tenant to ascertain its condition before the tenant moves out. A copy of estimated damages will be given to the tenant, and the of the balance security deposit returned to the tenant. Also included in the functions of the property manager is the cleaning and repairs of the vacated unit. The locks will be re-keyed, and the property listed for rent again.
Benefits of Using Property Management Companies
As a property owner, whether residential or commercial, you should consider choosing to manage your properties through reputable property management companies. Considering the functions or tasks performed by property managers, choose quality property management to maximize your returns from your real estate property and ensure that your property is in excellent condition.
Now that you have decided to contact a property management company, the following is the list of benefits you would gain:
- Highest Quality Tenants
Although you can evict bad tenants, the financial loss and emotional trauma you would have experienced would be unquantifiable. But when you work with a reputable agency, you will be provided with quality property management that will ensure proper screening and selection of a suitable tenant that applied to rent your property.
The property manager will select the best quality tenant that will not give any stress but pay on-time, put less wear and tear on your property, and rent longer.
- Avoidance of Rental Scams
Letting a property management company handle the screening of prospective tenants will protect you from rental scams, usually targeted at property owners such as discrimination lawsuits and other forms of scams. You will save yourself for the stress of attending to avoidable issues by hiring a reliable company for quality property management.
- Shorter Vacancy Cycles
When you work with a property manager, your property will not remain vacant for a long time. The manager will suggest necessary improvements and repairs for the property to maximize revenue and also market the property effectively. Besides, the manager will assist in deciding the right and optimal price for your property. In the long run, your property will have shorter vacancy cycles. Longer vacancy cycles result in loss of revenue.
- Higher Rate of Tenant Retention
You will avoid a lot of hassles when you manage your property through managers. One of the challenges that property owners face is a high tenant turnover rate, which causes lost tent, deep cleansing of the unit, locks’ re-keying, painting, etc. You can avoid this through quality property management that is guaranteed to keep tenants happy and cared for. Happy tenants have lengthy stays in a unit.
- Consistent Cash-flow
Property management companies have the experience and efficient rent collection policy or system that ensures that rents are received without stress, which makes consistent monthly cash-flows possible. Any default from the tenant can trigger eviction through the enforcement of the lease terms.
- Proper Maintenance of the Property
One of the primary responsibilities of any property management companies is carrying out the prompt repair of any property. Meanwhile, you can get this done as soon as possible under the preventative maintenance and repair.
- Less Stress
If you want to have peace of mind, let property management companies manage your property. You should not be the one hunting tenants for rent or evicting them from your property. You can avoid this stress by handing your property over to the company over to the company for the best company everts.
With the massive benefits that working with property management companies provide, choosing Newport property management is the best decision you can make. You unavoidably should choose a reputable company for the best results possible.