|
Featured
Article
Why
Hire a Property Management Company
Article contributed by Enterprise
Property Management
I have met many rental property owners that
have taken the position that hiring a professional
property management company to manage their
rental is a waste of money, especially when
they could simply manage it by themselves.
I believe this is a "penny wise, pound foolish"
approach. Of course, the person who decides
to do it themselves will save the monthly management
fee they would have paid to their property manager,
but they risk losing much more in the long run.
A
good property management company is worth their
weight in gold. The problem is, not every property
management company is good. To make matters
worse, rental property owners do not generally
find out they have engaged a bad property management
company until after the damage is done. So,
how do you know you have a good property management
company? A reasonable indicator is when your
property management company provides you a benefit
that far exceeds the expense of their monthly
management fee. In other words, you should expect
your property management company to provide
value for the fee they collect.
For
example, a good property management company
can shorten the time it takes to prepare your
property to be rented. One reason for this is
because they are able to coordinate the repairs
and maintenance needed to get your property
ready to rent much quicker than you could on
your own. This is true because many vendors
give property managers preferred treatment since
the property management companies control so
much of their business. So, by reducing the
amount of time your property is vacant, your
property manager is essentially increasing your
rental income.
In addition to reducing the time it takes to
prepare your property to rent, a good property
management company can also reduce the associated
costs of the preparation. This is because they
are generally able to negotiate much better
rates on the repair and maintenance work to
be performed on your property. Consider this
another benefit of controlling so much of their
vendors business.
A good property management company should also
be able to quickly identify and define the optimal
rental rate for your property. They have access
to a data base that is only available to licensed
realtors called the Multiple Listing Service
(MLS). The MLS contains valuable information
about exactly how much similar properties in
your area have recently rented for.
Being
able to quickly and accurately determine the
optimal rental rate for your property benefits
you in two ways. First it prevents your property
from being on the market for an extended period
of time because it is priced too high. Second
it helps you avoid renting it for an amount
that is less than the market will allow.
When
you do find a qualified tenant, a good property
management company will help you thoroughly
screen your prospective tenants. Property management
companies regularly screen tenants and as a
result are able to identify potential red flags
that might not be apparent to you. Preventing
a bad tenant from moving into your property
is invaluable.
Perhaps
the most valuable thing that a good property
management company can provide you is knowledge.
Experienced property managers are well versed
in landlord tenant laws and will ensure they
are followed. This means they can significantly
limit your exposure to litigation stemming from
your tenant.
It is clear that a good property management
company can be a valuable asset. The difficult
part is finding one.
-
- - - - - - - - - - -
Article
submitted by Enterprise
Property Management
Enterprise
Property Management is a family owned and operated
company serving Southern California property
owners since 1964. We are a well-known Orange
County property management company and we manage
hundreds of single and multi-family homes throughout
Orange County and portions of Los Angeles, Riverside
& San Bernardino Counties.
Please
feel free to contact us at 714.542.6800 if you
have any questions.
|
