Property Management Services: Which Companies Should Owners Outsource?

With such low interest rates now is a good time to invest in rental housing. However, owners who buy a rental property with multiple families will often find that property management for this building is in itself a full-time job. The last thing owners want is to lose money on their investment while incurring countless headaches and frustrations along the way. For this reason, it often makes sense for owners to outsource many services to an experienced property management company instead. Some of the services that owners should consider outsourcing include:

Collecting rental

Collecting rent from tenants quickly becomes a stressful and time-consuming process when tenants are slow to make payments. Frustrations on both sides can cause the tenant / owner relationship to turn sour, allowing owners to stumble to find a replacement tenant and risk losing money until they do. A property management company can act as an independent third party and remove relationships from the rent collection process. As these companies have experience with this service and can usually spend more time on the process than owners can, they typically achieve higher collection rates.

Conducting inspections

Owners have to make sure that their investments hold up, which is why inspections are such an important part of overseeing a property. When a property management company completes these inspections, it is able to recognize and solve small problems before they grow into bigger problems. Regular inspections also show tenants that the owner is concerned about property maintenance that prevents neglect or abuse. Along with periodic inspections, there are also circumstances that require specialized inspection. An experienced property management company will know when and how to get a contractor to perform an inspection. Such inspections may be to investigate unusual leaks, smells or noise reported by tenants. Owners who choose to handle these inspections themselves could incur higher costs and even fail to resolve the issue because they did not call the right inspector.

Legal advice

Property owners must consider many legal issues when renting their properties. When is the owner responsible? What problems need to be resolved before moving in? What conflicts can occur before the tenant moves out? Owners without the legal skill to tackle these issues may be in danger of raising their responsibilities. A property management company will have a more thorough understanding of the law and be able to advise or refer owners to a trusted legal professional.

Outsourcing of rental collections, periodic and specialized inspections, and legal guidance can help an owner reduce costs and responsibilities while improving the overall condition and value of the property. However, it is worth noting that these are just some of the many services that an owner is better placed to outsource to an experienced property management company.