How Using A Property Manager Can Improve Your Bottom Line
There are many reasons that landlords decide to enlist the help of a property management team when renting out homes in areas like Temecula, Winchester, and Fallbrook. It allows landlords to take advantage of the passive income without committing to all of the details and responsibilities it requires to rent out a home successfully. Time and convenience are huge factors in choosing to work with a property management company, but how it improves the bottom line may be the biggest reason of all.
For most homeowners, the whole idea behind renting out a property is to generate income. But to earn money, you must spend money. You could spend a lot of money screening tenants, performing routine maintenance, keeping tab on taxes and accounting, and communicating with guests, or you could hire a property management company to do all of that AND save you money in the long run. Here’s how:
A Property Manager Reduces Vacancies
If you own property in Temecula and work with a Temecula property management team, you will most likely see reduced vacancies in your rental calendar. Fewer vacancies mean fewer interruptions in your income. A property management team can devote time to marketing your home, following up on leads, and advertising so that you don’t have to. Instead of spending precious time and money searching for renters, a property management team can draw from their existing pool of interested renters to quickly fill vacancies. Additionally they have bulk contracts with major marketing companies like Zillow and Rentals.com that get your property full exposure which leads to more qualified applicants.
A Property Manager Reduces Bad Tenants
Just because your property has tenants in it doesn’t mean it will always be smooth sailing. Without screening and checking references on guests, you could end up with tenants with a history of missed or late payments, which could cause a whole new set of inconveniences. A property management team can spend time checking up on potential renters to ensure they will not only take care of your property but that they can be trusted to pay and pay on time. A bad tenant means spending money on eviction notices and even legal fees, but a property management team can help avoid this.
A Property Manager Reduces Maintenance Fees
Homeowners who work with property management teams also get the added benefit of reduced maintenance fees. If your property management team has an in-house maintenance team, their services are typically included in your monthly management fee, and you’re not spending money on every visit or call out. If the property management team doesn’t have a maintenance team, they probably have a list of licensed and bonded contractors who they’ve established a relationship with. This means when you pay for routine or emergency maintenance, you can trust that the work is done well and will stand the test of time. Home repairs are one of the most costly expenses that a landlord will face, but working with a property management team improves the bottom line by cutting these costs significantly.
A Property Manager Reduces Legal Issues
Being a landlord comes with strict legal guidelines that must be followed carefully. As one person, staying on top of these laws and ensuring your property and business is current and in good standing is a full-time job, one that could cost you significantly if done incorrectly. One of the most common pitfalls is the Move-In Move-Out Inspection. Working with a property management team lets you rest easy knowing that they are on top of all legal policies and procedures and can stay on top of any changes in the law. A reputable property management team can keep landlords out of courtrooms, and therefore improves the landlord’s bottom line.
Increases Buying Power
As a do-it-yourself landlord, you are much more likely to pay full price for pretty much any contracting service you require for your home. A property management company, however, can often get a “bulk discount” for these services, and the savings are passed down to you. Pool maintenance, lawn care, and carpet cleaners are examples of services that may offer your property management team a volume discount, making these services cheaper for you than if you were to hire them as an individual property owner.
It is clear why so many landlords trust Murrieta Property Management, like Benefit National and other management companies in the surrounding areas, to help them maximize their rental revenue. A property management team is not just an extra set of hands and eyes on your property, but a way to improve your bottom line and put more money in your pocket.
Take the stress of owning your investment property by taking it out of your hands and into ours.
Benefit National Property Management. Murrieta & Temecula Area Property Managers.