Property management companies specialize in real estate management on behalf of the property owners. These companies likely won’t handle any renovations or remodeling. If you live in Denver, they won’t be able to show you an exquisite kitchen design in Denver. They also won’t be able to handle your home loan.
However — staying with the Colorado example — Carbondale property management companies would be able to take care of your mountain property while you’re away. They will be able to handle everything from tenant management to maintenance and financial management.
Property management companies will provide these services for a fee. That fee is typically around ten percent of the property owner’s income from the tenant but it depends on the property management company.
In this article, we’re discussing the duties of property management companies in more detail. If you have an investment property and are looking to maximize your investment while reducing your overall stress, continue reading.
What Tasks Do Property Management Companies Complete?
Tenant Management
The first task property management companies have to concern themselves with is tenant management. If a property management company can’t fill properties, they are likely not worth paying.
Successful property management companies will screen potential tenants, handle complaints, and manage lease agreements. They will ensure tenants pay rent on time and comply with all the terms of their lease. They will also be able to handle any tenant evictions.
Property Maintenance
Property maintenance is another critical component for property management companies. This includes property inspections, cleaning, repairs, maintenance tasks, landscaping, and code checks. These companies will keep the property in good condition and address any issues or repairs in a timely manner. They can also ensure the property is safe and inhabitable for tenants.
Financial Management
Property management companies handle the financial aspects of owning properties. The financial aspects include budgeting, accounting, and financial reporting. They track expenses related to the property and manage rental income and expenses to ensure the property is profitable for the owner. They can also handle taxes and other financial obligations related to the property.
Marketing and Advertising
Property management companies are also responsible for marketing and advertising vacant properties to attract potential tenants. They might list the property on various listing sites or post signs around the property. They can also reach out to local real estate agents to find potential tenants.
Legal Compliance
Property management companies can stay up to date on the local laws for regulations and compliance. They keep the property up to date on all safety and health codes and they comply with local housing laws to address any issues related to the property.
Property management companies can also provide certain services depending on the owner. They might, emphasize “might” provide renovation services, negotiate lease contracts, or handle insurance claims. However, this is not the norm.
What Are the Benefits of Property Management Companies?
There are several benefits to using a property management company. First, property owners can save time and effort when they outsource the day-to-day management tasks associated with their property. They will also be able to focus on other areas of their business or personal life.
Property management companies also have specialized knowledge and experience managing properties. This ensures the property is well-maintained, profitable, and compliant with local laws and regulations. Lastly, property management companies aid property owners when trying to avoid legal issues and financial penalties.
Tenants
Tenants also benefit from property management companies. These companies provide them with a clean, safe, inhabitable environment. They can promptly handle all maintenance issues, clearly communicate lease agreements, and maintain compliance with relevant laws and regulations.
When Should You Hire a Property Management Company?
Hiring a property management company has many advantages but using one can prove expensive. Aside from the cost, you might not want to be hands-off with your property investment. You should consider the following factors to determine if a property management company is your best decision.
If you have lots of rental units, you will likely benefit from a property management company. This is because management can get out of hand and they will be able to eliminate stress. Also, if you live far away from your property, property management companies might be the only way to ensure tenants get the level of hospitality they deserve.
If you’re not interested in managing the property yourself, a property management company can ensure you don’t have to worry about the stress. For example, if you own a property strictly for investment purposes, you should consider a property management company.
If you have a full-time job and you can’t afford to spend the time it would take to inspect properties and fill them with tenants, a property management company will likely be the best bet. Lastly, if you can afford a property management company, you might simply not want to deal with the tasks thaat accompany filling a property with tenants.
How to Find a Good Property Management Company
If you decide to use a property management company, you should use some caution when selecting one. You can decide whether a property management company is good by using a few methods. First, you can solicit your colleagues’ and local apartment association’s opinions.
Next, you can search for professionals on the internet. You might also be able to interview
companies to answer your questions before selecting.
Lastly, you can learn more about protecting yourself when hiring a property management company by searching for blogs and contacting local associations.
Conclusion- What Do Property Management Companies Do?
Property management companies play an integral role in marketing, maintaining, and managing properties. They handle numerous tasks related to tenant management, property maintenance, financial management, marketing and advertising, and legal compliance.
Outsourcing these tasks saves property owners time and ensures their properties are well-maintained, profitable, and tenable. These companies help property owners avoid any legal issues that might arise during property ownership as well as any financial penalties that can arise.
