Managing rental properties can be an overwhelming burden for property owners who don’t have the time or relevant expertise for the same. To ease the burden, they can delegate this responsibility to professional rental property management companies. These companies take care of various tasks like advertising property, vetting prospective tenants, collecting rent, managing leases and timely maintenance and repairs, just to name a few.
Real estate rental property management companies can be entrusted to handle all types of properties, including residential, vacation, or commercial. They essentially provide comprehensive property care and maintenance on behalf of the property owners. If you have a rental property that you’re too busy to oversee effectively, then hiring a renowned rental property management company would make perfect sense for you.
What Are the Key Duties of Rental Property Management Companies?
-
Property Advertising
If a rental property is currently unoccupied, then the property manager will work to find suitable tenants for it. They may begin the process by evaluating the property to see if any repairs, upgrades, or enhancements are needed. This is to ensure that your property captures the interest of potential renters. Sometimes, a little revamping is all that’s required to boost the chances of a property getting rented quickly.
The next step would be to click photographs and videos of the property for promotions. The property manager will look after everything from offline showings to online marketing on property listing websites.
-
Setting the Right Rental Rate
Deciding the right rent for a property can be tricky. A property priced too high will fail to attract renters. On the other hand, one that’s priced low won’t be lucrative enough for the property owner. Property management companies help decide the right price by considering various data points. They take into account the property location, market data and trends, the property’s unique features, and competition survey, among other things, to come up with an apt rental rate.
-
Finalising Tenants
When the property starts receiving interest from prospective tenants, property managers will assess the applicants to select the most suitable one for the property. The screening process typically consists of credit history checks, employment and income verification, background verification, etc. The manager may request and contact any listed references to ascertain the tenant’s credibility.
Rental property management companies ensure that the screening process is fair, unbiased, and doesn’t invite any lawsuits. Strict checks are done to ensure that the final chosen tenant is financially sound and stable enough to pay rent on time and doesn’t have a criminal history.
-
Outlining the Lease Agreement
Once a suitable tenant has been chosen, property managers will prepare the lease document with all the important terms outlined. The lease agreement will consist of various details like security deposits to be paid, guidelines to follow during residency, the penalty for late rent, etc. The document will also specify what could happen in the event of any violation of the terms. The possible actions in response to the violations could range from a hefty fine to eviction.
-
Ensuring Regular Property Maintenance
All the best property maintenance companies work diligently to ensure that your property remains in a top-notch state. Ideally, the maintenance efforts should begin as soon as you hire them. The company may have its own team to do the repair work, or they may outsource the work to vendors.
Maintenance not only refers to fixing damages and leaks but also to various preemptive repair activities. Property managers conduct time-to-time inspections to see what work needs to be done in and around the property. This may include landscaping, repainting, exterminating insects, monitoring electrical and plumbing operations, etc.
If tenants have any repair or maintenance needs, they can submit a request for the same to the property manager, and the manager will take it from there. This is one of the best advantages of having a property management company work for you. Any maintenance-related requests from tenants are taken care of by the company. So, you don’t have to worry about dealing with angry calls from tenants at random hours.
-
Collecting and Processing the Rent
Property managers remind tenants about the rent due and collect the same on a timely basis. After subtracting their fees plus other relevant costs incurred, they’ll disburse the appropriate amount to the property owner. If there’s any penalty applicable for late rent, the manager will collect that too. Moreover, if there are repeated instances of failure to pay rent and eviction is warranted, the manager will work on that as well.
Property managers must also be vigilant about making changes in the rent price. They’ll consider market conditions to determine if the price needs to be reduced or increased.
-
Helping Tenants By Resolving Problems
Throughout their residency at the property, tenants may encounter different problems or have complaints. These could be related to maintenance, the neighbourhood and community, or any other kinds of disruptions and conflicts. Property managers ensure that these complaints are sincerely heard and quickly resolved. The managers remain available to the tenants to answer their queries, act as mediators when needed, and find suitable solutions to their problems.
-
Managing Property-related Finances
Along with supervising the property, real estate property management companies also look after the associated extensive accounting work. They keep a detailed record of the rent received, invoices, income versus expenses, financial statements, and other vital financial data. These records help you keep close track of your real estate investments, allowing you to evaluate their profitability.
The company is accountable for ensuring that all bookkeeping is up-to-date. They can even help sort out the taxes related to the property and rental income, helping with tax filing as well as tax deduction claims.
How Can I Benefit from Hiring a Property Management Company?
Real estate can be complicated, so it certainly helps to have someone experienced in the field to guide you. If you’re looking to leverage your rental property as an income-producing asset, then you should approach one of the best property maintenance companies to get expert assistance. Here are some special benefits that you can get from doing so.
-
Stay Compliant With Laws and Regulations
There are many legal aspects that you need to be aware of and comply with when managing and renting out a property. From local and health laws to tenant laws, adhering to the applicable regulations is important. Furthermore, if there are changes to these laws, one needs to stay on top of those too. Sounds challenging? Well, a rental property management company is well-aware of the relevant laws and ensures that you comply with them.
-
Conveniently Manage Multiple Properties
If you own several properties, then providing the necessary care and attention for each can be quite difficult. For various reasons, you may not find it feasible to actively engage yourself in the day-to-day management of each of these properties. This is where you may appreciate the support and help of a property manager.
-
Find Reliable Tenants
Bad tenants can be the worst nightmare for any landlord. This is why finding tenants who fulfil all the required criteria with flying colours is so crucial. The extensive tenant screening process carried out by the property management companies ensures well-qualified tenants for your property.
-
Maximise Your Real Estate Investment
In addition to assisting with everyday operations, property managers also work to improve the value of your real estate in the long run. They maintain the property in a pristine state and make necessary additions or changes that can increase the property’s value. They also know when it’s apt to leverage the favourable market conditions as well as the property’s USP and increase the rent.
Wrapping up
Many aspire to invest in real estate, given how lucrative it can be. But a lot of us also take a step back, realising the amount of long-term work that goes into real estate management. This is where a trusted real estate property management company can greatly help.
Such a company will offer comprehensive management services for your rental property, efficiently handling every detail. From interacting with the tenants to being hands-on with property supervision, the company will see to it all. You can just relax knowing your property is in good hands and you’re making the most of it.
You May Also Read
| Famous Houses in Canada | Real Estate Broker |
| Buying a House in Canada for Non-Residents | Buy a Leasehold Property in Canada |
Frequently Asked Question ( FAQs )
Recommendations from credible sources are a good place to begin the search for a reliable company. Conduct detailed interviews to understand the company's working methodology. You want to choose someone who is easy to communicate with and has a hands-on approach.
The commission fee you pay to your property manager is worth it when you consider how much they help cut down on expenses and enhance your real estate wealth over the long term.
It's always a good idea to exercise caution and judgement when hiring your property management company to ensure that you work with trustworthy people. Before hiring, check how long they've been working in the industry, their track record with other clients, and their market reputation.
The letting agent either bills the landlord a fixed fee or a percentage of the rent, and for a fully managed service, they typically charge between 10-15% of the rent, which they collect in monthly instalments.
Whichever company aligns well with your wishes and demands and is completely transparent about their processes and policies, choose that property maintenance company.
What are some important tips to remember when hiring a property management company?
Is it worth hiring a property manager?
Are property management companies trustworthy?
How much does a property manager cost in Ottawa?
How do I decide which property maintaining company is the best?
How do property manager deals when tenant calls with an issue?
