Top Benefits of Hiring Property Management For Your Apartment Rentals
If you own apartments for rent then you know how time consuming, and often stressful, maintaining a property and dealing with tenants can be. From tenant screening to rent collection to maintenance and repairs, owning a rental property comes with a lot of responsibility.
Most owners choose to hire a professional property manager in order to not only keep their sanity, but to also improve property value. Below we outline the most important benefits a professional property manager will have on not only your apartments for rent, but also your bottom line.
Higher Quality Tenants
Rental properties exist to produce income for their owner, and no other factor can affect an assets revenue stream more than a bad tenant. This is why a thorough tenant screening process is so important. Experienced property managers know how to perform quick, quality and consistent screening processes that:
- Easily spot risky tenants
- Avoid rental scams
- Ensure avoidance of discrimination lawsuits
Resulting in tenants who:
- Pay their rent on time
- Lease for longer periods of time
- Cause less damage/wear-and-tear on your property
Shorter Vacancy Cycles
For property owners, empty apartments for rent mean empty bank accounts. A rental that sits vacant for months can lose an owner thousands in revenue potential, which is why hiring a property manager is so important. Beyond the tenant screening process, managers will perform these essential tasks that result in much shorter vacancy cycles:
- Determining optimal rental price: Pricing for apartments for rent is crucial to consistent vacancy. Too low and you are losing money, too high and it sits empty. Managers use local market data and rate comparables to define the rental rate optimal to occupancy.
- Using effective marketing tactics: In order to fill your vacancy with quality tenants they first need to know your rental exists! An experienced property manager knows where to list/advertise your rental and how to communicate to the type of tenant you want. From finding prospects, to closing the deal, owners who enlist the help of property management have access to larger and higher quality candidate pools. This results in getting your apartments for rent off market quicker and easier.
Maintaining Consistent Cash Flow
“Cash flow” for owners of rental properties is just another word for “rent collection”. Rent payments, and subsequent late fees, can make or break a property’s annual earnings. The only way to maintain consistent and reliable cash flow is to ensure on-time monthly rent collection.
How many times has an owner had to deal with sob story excuses as to why the rent is late, or be the bad guy and chase down tenants to pay up? Worse case scenario an owner has to deal with the eviction process. But, when an owner hires property management they put a buffer between themselves and the tenant, allowing a third party to effectively enforce the lease terms. This allows for a non-negotiable process where tenants pay on time, on a consistent basis.
Lowered Maintenance and Repair Costs
Every rental property will require regular maintenance and repairs. This keeps tenants happy (which keeps space occupied and rent coming in) and increases property value (which increases returns).
While owners are aware of (and prepared for) these costs, they may not realize that professional property managers can significantly reduce them. Yes, property management costs owners money, but those costs are almost offset by the pricing breaks their property managers have access to. They realize these cost savings through:
- Enacting preventive maintenance and repairs
- In-house maintenance staff
- A network of quality contractors and vendors
- Volume discounts
Increased Property Value
Due to all of the benefits we’ve listed above – quality tenants, occupied units, consistent rental payment and efficient maintenance – professional property management will increase a rental property’s value.
To really understand this, owners should know how the property valuation process works. The two main factors that affect a property’s value, i.e. listing it at a higher price and making it desirable to buyers, are (i) the quality of the current tenants and the lease terms in place and (ii) the physical health of the asset. These are two things directly affected by property management, (i) tenant screening and retention and (ii) preventative maintenance.
Seeking property management in Hattiesburg or surrounding areas?
If you own apartments for rent in Hattiesburg or surrounding areas and have read this whole article then you now realize the advantages of hiring professional property management. With over 35 years experience in the Hattiesburg rental market, the team at SVN | Southgate Realty, LLC has the experience and tools to provide the most comprehensive property management services you will find in the area. To get a custom quote, or for more information, contact us today!