Investing in rental property real estate can be an excellent way to build a passive income stream and a retirement nest egg. But not every landlord and budding real estate tycoon necessarily has the time and/or the experience to effectively manage their properties, especially as their portfolio grows. This is when hiring a property management company is a good solution. Here are some things to look for from a professional real estate management service.
They Will Vet Potential Tenants
Responsible tenants who will pay the rent on time as well as not destroy your property is the goal. Finding suitable tenants, however, isn't always easy. It can take time to properly research a prospective tenant. A criminal background check, employment verification, reference check, and sometimes, a credit report must all be performed. A good property management company will handle this for you.
They Will Arrange Maintenance Services
Whether the oven breaks or a move-out cleaning needs to be done, a professional real estate management service will take care of this job for you. Make sure they provide 24/7 service; the last thing you want is to have to deal with late night or weekend calls from distraught tenants who have locked themselves out of their apartment. Some property management companies have their own in-house maintenance and cleaning crews while others contract out to other agencies. Be sure to inquire as to which method a property management company you are considering employs as this could potentially affect your costs. You will want to be very clear on how the billing works.
They Will Collect The Rents
Some landlords have a difficult time collecting rent, especially if their personality is laid back or prone to sentimentality. A sad sob story, even when true, can make it hard to have a cold, logical business approach. This is usually even more so the case when the tenant are friends or family. Renting to friends and family can be good on one hand- you know they won't destroy your property- but t can make it harder to collect the rent. A property management company can relieve you of this issue.
They Will Handle The Paperwork And Legal Issues
A property management company has real estate professionals who know landlord and tenant law for your state. Whether it's drawing up a lease or filing the paperwork for an eviction, the company will handle it for you.