In an ideal world, real estate investing would involve finding a great property in a great area, purchasing it for an incredible price, and placing tenants in it that paid rent on time and never causes any problems. Unfortunately, real estate investing can involve a lot more than that, and trying to juggle it on your own (along with a career, social obligations, and a family) can elevate your stress levels.
Hiring a property management team is one of the first things you should do when you begin to feel overwhelmed with the responsibilities that come with managing your investment property. Here are the 5 most common stressors that accompany real estate investments and how hiring a property management team can alleviate them.
The only way your investment property is going to be profitable is if you fill it people who are going to pay you more than they cost you. Finding tenants, screening them and running background checks is a time-consuming process that can cause significant stress for investors. A property management team should have a tried and tested screening system that finds quality tenants for your property who are financially responsible and will treat your property with respect. Property management companies have systems in place to not only find tenants to fill the home, but to ensure they are high-quality tenants with high retention rates.
If tenants are delinquent with their rent, you don’t have to worry about chasing them down or dealing with awkward confrontations to get paid. Property managers will send all of the reminders, document the payments, manage automatic payment systems and track down tenants who aren’t paying on time. Hiring a property management company allows you reap the benefits of owning investment property without worrying about who’s living in it.
Handling Legal Matters
Hopefully, you will never have to present your tenants with an eviction notice or a termination of a lease, but in the off chance that you do, it can be a lengthy, detailed and expensive process. Property management companies can take the lead on many of these legal matters, including inspections, handling security deposits, and additions/edits on the lease.
There’s nothing more stressful than getting a call in the middle of the night from a distraught tenant about an AC not working in the middle of summer, or a pipe has busted in the kitchen. As the owner of the home, your main responsibility is to ensure your renters are living in a safe and comfortable environment and to handle common maintenance issues as they arise. This is especially stressful if you’ve already got a full plate of responsibilities or don’t live close enough to the property to effectively handle these situations. Working with a property management team allows you to take a step back from the typical day-to-day operations and not be worried about routine maintenance or upkeep on the house. A local property management company acts as eyes and ears on the property to ensure everything is running smoothly while you’re not around. Knowing that someone else is taking care of your property and will alert you if there is an emergency can ease your worries about the status of your home.
Dealing With Taxes
Uncle Sam doesn’t play around when it comes to his money, which is why understanding the tax requirements on an investment property is so important as a landlord. Property management companies will keep detailed records of taxes for your investment property so that you don’t have to. They can help you understand all of the deductions to claim at the end of the year, and the fees you pay them are tax deductible as well.
We live in a fast paced world where we encounter multiple stressors on a daily basis. Owning an investment property doesn’t have to be one of them. Hiring a property management company takes the stress out of managing your property and lets you focus on your job, your family, and the monthly rent checks that keep rolling into your bank account.