You have spent months looking for the right investment property. You have perhaps spent hundreds of thousands of dollars on purchasing this choice piece of real estate. Now your goals are to have your investment creating an income stream and, hopefully, appreciate in value during ownership. In order for you to meet these goals, you’re going to need to protect your investment. A skilled and experienced property management company is an excellent way to protect your investment.
Why Your Investment Property Needs Protection
Managing a rental property may seem like a pretty simply task. You find the tenant. You collect the rent. Then you fix what gets broke. Simple as that. Well, not quite. What if you put a bad tenant in your rental and then they trash the place? What if you are not asking enough rent? What will you do if they do not pay and will not move out? What if there is a major plumbing leak in the middle of the night? Where will you get the money when the furnace decides to die in the middle of winter? Property management can get complicated really fast. What is more, a bad decision can cost you hundreds or even thousands of dollars. It can be the difference between operating with positive cash flow and having to fund your investment out of your own pocket. Not a pleasant though.
How a Property Management Company will Protect Your Investment
Now, on the other hand, a qualified property management company has the skills, training, and experience to make sure that your property meets, or even exceeds, your investment goals. They whole purpose is to protect your investment.
One of the primary duties of a property manager is to ensure that you have only high quality tenants in your rental units. They will work with you to establish a clear set of guidelines and pre-qualifications to ensure that each and every tenant has the financial capacity to pay the rent each month. They will follow up on credit references and past landlords to make sure that the tenant has a history of taking good care of the apartment.
In the event that a tenant defaults on the lease – either by not paying the rent or by damaging the unit or otherwise violating the terms of the lease – your property management company will protect your investment by promptly evicting the tenant. They will adhere to all of the state requirements in order to reduce your liability.
A skilled property management company knows the market they work in. They have completed in-depth rent studies. They know the competition and what they are offering. They know where the rents have been and where they are going. This is another way a licensed property management company protects your investment. They will make sure that each of your rentals are earning you as much income as realistically possible. This is the first step to making sure your rental properties are creating a positive cash flow.
Getting money coming in, however, is only half the battle. To truly protect the financial side of your investment, your property manager will also work hard to keep your expenses low. Scheduled maintenance can help to reduce replacement expenses. Regular property inspections can catch problems before they escalate into a major expense. Your property manager will also have maintenance personal on staff that can handle minor repairs rather than calling a licensed professional and paying their exorbitant hourly rates. Your property management company will work tirelessly to look for ways to reduce your expenses in order to increase your profit margin.
Financial protection is not the only protection that property manager’s will offer their clients. They will also work hard to keep your property in top-top shape while staying well within your operating budget. Because of their experience, they may recommend an upgrade or a property improvement that could dramatically increase both the market appeal and the property value. Your property manager will also ensure that your rental properties are safe and secure. They will make sure that your property complies with all safety and building codes.
Property Management Companies are Your First Line of Defense
A highly skilled property management company is one of the best ways to protect your real estate investment. They have the experience, the training, and the time to make sure that your investment is earning you money and growing in value. Meanwhile, you can relax and focus on other important areas of your life knowing that your property management company is working around the clock to protect your investment.