Many landlords choose to manage their own property to maximize profits. However, this is a big mistake which can cost them a significant amount of money. A property manager has the expertise, experience, and resources that new landlords do not possess. The following are some major reasons why a property manager saves you money:
Shorter Vacancy Length
The more a property sits vacant, the more it costs to the landlord. In other words, landlords will make more money when the property remains least vacant. Property managers know how to give maximum exposure to their property on the market. With a property manager, renters find the landlord rather than the landlord looking for renters.
One thing that no landlord wants is bad tenants. It can cost a person thousands of dollars when there are extensive damages, forced eviction, and unpaid rent. The legal fee for eviction is up to $1,000, and consecutive three to four bad tenants can make an owner lose on their huge investment. A landlord will be making no money when his property will be vacant, and they will be losing a huge amount of money when there are bad tenants. A property manager will conduct effective tenant screening which tends to include tenant's rental history, employment verification, and a background check. All of that will save lots of time for the landlord.
Less Maintenance Cost
Property managers know all things and issues involved in property maintenance. A property manager usually has in-house maintenance staff, and the service is included in the monthly fees. An owner does not pay any extra money for the maintenance work. Some property managers do not have their own maintenance crew. However, they have a network of contractors that are licensed and insured. The property managers secure services from contractors at reduced rates because repair work is required from time to time.
Better Rent Collection
Many tenants have a bad habit of not paying the rent on time. Collection of rent on time every month is vital for consistent cash flow. The landlord needs to be firm; otherwise, tenants keep making up excuses for longer periods of time. A property manager knows how to deal with such issues. They know what type of excuses tenants tend to give and how to deal with it. The tenants must pay the rent, or they must be evicted. The process is not so simple, and it involves legal issues and lots of time. Therefore, having a property manager solves many problems and saves time and money.
For more information, contact a company like ProFleet NW General Contractor.