Are you a property investor managing your own rental properties, looking for ways to increase your profits? If you haven’t considered delegating your tasks to a property manager, now is the time.
There are countless benefits to hiring a property manager. For instance, investors in Katy, Texas hire property managers to manage everything from rent collection and inspections to evictions and repairs. To see a full list of services property managers offer Katy landlords, visit GreenResidential.com.
Having standard landlord tasks managed by professionals will increase your profits by eliminating costly legal mistakes, and increasing the efficiency of your landlord duties.
Here are just some of the specific ways hiring a property management company can increase your investment profits.
1. Landlord-tenant law mistakes can be costly
Landlord-tenant laws are taken seriously by the courts. If you don’t strictly abide by the law, you could find yourself in serious trouble. In fact, most court systems tend to favor tenants over landlords in disputes that aren’t egregious violations of a lease or law.
For instance, if you try to evict a tenant without following the proper procedure for giving notice, your lawsuit will likely be thrown out on a technicality, even if the tenant should be evicted.
On the other hand, even if you do everything correctly and your case is heard, if the judge thinks you acted in violation of the lease or violated your tenant’s rights, they will rule in favor of your tenant, which can cost you in the form of a massive judgment.
The worst situation you could find yourself in is violating the law governing security deposits. If you don’t return a tenant’s security deposit according to the law, you could get sued for a large sum of money. One landlord in Los Angeles was recently handed a $12.5 million judgment for withholding security deposits from 19,000 tenants who moved out.
There is no room for error where evictions are concerned. This is why investors hire a property management company to handle their landlord affairs. A professional property manager will always make sure they follow landlord-tenant law to the letter.
2. Property management services free up your time
As an investor, you probably want to find additional investment properties. If you’re always managing your tenants, you won’t have much time to pursue and manage additional investments.
Hiring a property manager is the easiest way to free up the time you need to grow your investment portfolio. This is especially helpful if you want to travel and acquire property overseas or even just in another state.
3. You’ll get good rates for professional services
Professional cleaning and maintenance services can be costly, but when you work with a property management company, you’ll likely get access to better rates. Property management companies get good deals on services because they can provide contractors with a steady flow of work. Usually, they pass those savings on to their clients.
It’s important to save money wherever you can, and when it comes to repairs and maintenance, you’ll want to save as much as possible.
4. Property managers handle issues fast
Not handling an issue quickly can make a situation deteriorate into something costly. For instance, if your tenant is flying some serious red flags, but you ignore them because they don’t seem like too big of a deal, you could end up with more serious problems like major damage or expenses related to cleaning up after a tenant who leaves junk behind.
For example, say one of your tenants starts leaving garbage outside of their unit for weeks at a time and never seems to take their trash to the trash can. Say this goes on for a couple of months. It’s common for tenants to put trash outside for a few hours until they can leave the house to bring it to the garbage can, but it’s not normal for tenants to let the trash pile up outside their door for days.
This type of issue should be addressed immediately with a notice to resolve the problem immediately. This way, if the tenant continues to pile up the garbage, you have legal grounds to file an eviction lawsuit if they don’t comply. The longer you wait to notify the tenant, the more upset they’ll be when you tell them to stop.
Additionally, a tenant who piles garbage outside of their unit might also be doing other things that violate the lease agreement. If you ignore small issues, you could also be allowing larger issues to brew behind the scenes. The same person who lets trash pile up might be hoarding animals. It’s always best to tackle issues immediately.
5. Property managers don’t let tenants slide
One of the fastest ways to make a rental property lose money is to be too lenient with your tenants. It’s natural to sympathize with a tenant’s situation, but as a landlord, letting tenants slide is a costly habit.
Once you give tenants a break, they start to expect those breaks on a regular basis. For example, if a tenant needs an extra week to pay the rent and you don’t charge them a late fee, they’ll expect the same break next time they can’t pay the rent. At that time, if you require them to pay a late fee, they might feel resentful if you don’t give them another break.
Professional property management companies will only give tenants breaks at their discretion, and won’t allow tenants to get away with expecting or demanding additional privileges. This includes making sure they are charged late fees and follow the rules outlined in the lease. When they do give a tenant a break, they’ll be very clear with the tenant to make sure they understand it’s not to be expected in the future.
Want bigger profits? Start delegating
If you want bigger investment profits, start delegating your landlord tasks to a professional property management company. The fee you pay your property manager will cover all of the services you’d otherwise need to schedule with multiple contractors.
With a property manager working for you, you’ll have more time to manage your existing investments, look for new opportunities, and even start another business on the side if that’s what you’re trying to do.
Regardless, delegation always plays a big role in increasing profits. Start delegating your tasks today and watch your profits rise.