Many property owners do not know what a property management company does, which can leave them wondering if they need to hire one. In this article, I’ll be going over all of the services a professional property management company in Salt Lake provides and how it benefits you as a landlord.
Rental property owners who do not wish to have the hands-on job of managing their own properties hire property managers or property management companies to oversee their properties for them. Property management companies will charge on average around eight to twelve percent of the property’s monthly income. Some management companies charge a flat rate and that usually will depend on the size, location and value of the property.
A property owner can opt to hire an individual to manage a property for them, however any background checks or bonding would have to be done by the owner themselves to ensure the individual would be trustworthy when dealing with such a large investment. Rental property managers usually make an annual salary of around 30K to 80K.
There are many reasons a rental property owner might want to hire a third party to manage their property. If there are multiple properties to deal with or the owner lives far away from the rental properties, third party management is basically a necessity. Some owners do not have the time or simply do not want to manage their own properties.
Property management companies eliminate the need to hire employees such as managers and maintenance staff and groundskeepers. If the property is part of the affordable housing program or some other type of subsidization, a property management company is very helpful with filing paperwork and making sure all requirements for eligibility are met.
Property management companies handle the day to day management of rental assets and face to face interactions with tenants. Some of the things a property management company or property manager are responsible for are:
- Property managers collect monthly rent, issue receipts, and maintain records of the payments.They can deal with defaulting tenants that are behind in rent. Some property managers will even go to court in place of the owner during eviction proceedings.
- Property managers can manage maintenance requests, issue maintenance orders, contact and hire contractors and otherwise address maintenance problems.
- Property managers can market a property to limit vacancies. They can also perform open houses and home shows and screen potential tenants. Property management companies also take care of move in and move out procedures, including the documentation of the condition of the property as well as the signing of leases.
- Property managers will act as record keepers, keeping detailed records of everything pertaining to the property. They will maintain copies of all leases, move-in and move-out reports, monthly rental payment ledgers, and maintenance and contractor costs and contracts.
Effective property management companies and property managers are worth their cost, in a lot of cases, many times over. They take the headaches out of property ownership and allow owning rental properties to be truly passive income. For home owners associations, property management companies alleviate a lot of issues that arise from conflict of interest and generally decrease disagreements and drama.
You should consider hiring a property management company or property manager if you want someone to mitigate liabilities, shorten periods of vacancy, recruit quality tenants, better manage maintenance and get you better reviews.