Being a landlord comes with many responsibilities; advertising rental properties, screening potential tenants, collecting rent, maintaining/repairing the premises, responding to resident complaints, handling evictions, keeping books, and remitting taxes. There are many options for managing these duties. You can undertake them yourself, hire a resident manager or employ a property management company. When should you hire a property management company? Do you have the time, energy, and knowledge to manage your rental properties on your own? Do you think you can find and hire an individual that can single-handedly complete this complex array of tasks? If the answer to these questions is NO, it may be time to enlist the help of a property management firm.
What is a property management company?
A property management company is a business that landowners hire to take care of their lease properties. The management company provides some and/or all of the following services:
- Markets the property (advertising)
- Shows the property
- Screens potential tenants
- Responds to tenant concerns/questions
- Collects rent and security deposits
- Insures the property (public liability, fire, glass breakage, rental income)
- Handles ongoing maintenance
- Manages security
- Hires and manages property staff
- Coordinates yard care and cleaning services
- Drafts and signs leases and lease renewals
- Creates and adheres to budgets
- Coordinates and completes property inspections
- Serves as the face of the property,
- Schedules repairs
- Completes accounting tasks (income and expense)
- Provides financial statements and/or reports
- Undertakes tax administration
- Provides vacate management
Property management companies may handle multi-family dwellings (townhouses, condominiums, apartments, duplexes), single-family homes and/or business/industrial real estate (shopping centers, industrial parks, office buildings). Their role is to direct routine tasks and maintain the value of the property.
What types of property management are available?
Property comes in many types and so do property managers. Some companies specialize in providing services for a specific type of property. Other firms offer services for a range of property types.
- Residential property management deals with properties where tenants live in the space (single-family homes, apartments, condos, mobile homes, vacation homes, gated communities. etc.)
- Commercial property management companies deal with non-residential real estate (business rental space, large office buildings, single-unit offices, hotels, retail properties, etc.).
- Industrial property management firms deal with industrial complexes (manufacturing and production sites) which must comply with a variety of local laws.
- Special purpose property management deals with all properties that don’t fit into the other three categories. These are properties that cannot be used for anything but their original purpose (stadiums, senior housing complexes, university campuses, etc.).
What are the advantages of hiring a property management company?
There are many benefits to hiring a property management firm.
- They handle daily operations (rent collection, accounting tasks, regular maintenance, etc.) saving you time and effort and ensuring maximum profits.
- They have a network of contractors to call upon for repairs, at a fair price. They’ll schedule these professionals, as needed, ensure the work is completed and provide them reimbursement for their work. Your property will be well maintained and repaired.
- They efficiently and effectively screen potential tenants, undertaking background/credit checks, making certain your property is occupied, and ensuring you have high-quality renters.
- They have up-to-date knowledge of the rental market and your competitors’ pricing. Thus, they’re able to determine the appropriate rental rate for your property.
When should you hire a property management company?
If you’re short on time, have multiple properties, are not able to provide all of the required services, are unfamiliar with the rental market, lack the knowledge of how to successfully rent property, have never rented property before, or wish to simplify your life, you should hire a property management company! They can efficiently and effectively take care of all aspects of your property management from the preparation of the property, to marketing, to tenant selection, leasing, maintenance, rent collection, and security. Let a property management firm reduce your stress while ensuring profits.
GIL Property Management & Sales Ltd. has a reputation as a trusted residential real estate partner. We ensure the success of your rental property(s) by paying attention to all details. With two levels of service packages, GIL allows you to decide how much assistance you desire, ensuring you have assistance that meets your unique needs. We provide exceptional service! Contact us today!
