New landlords sometimes attempt to increase their earnings by running their properties. However, this method can lose your money mainly because you might lack the knowledge, competence, and resources an expert property management business has. Here are 6 ways a Dallas property manager can save you money on your rental properties.
1. Money on Repairs and Maintenance
Property managers often have a network of contacts in the maintenance and home repair industry who are eager to give discounted services in exchange for repeat business. That implies you could gain from the property manager's current contacts.
Plumbing, air conditioner installation, electrical work, gardening, and even relocation assistance are all examples of discounted items and services.
2. Managing Rent and Debt Collection
Rental properties are supposed to earn money-not make you work! Trying to keep track of paid rent on the investment properties as an owner-landlord can be challenging, not to mention the money and time wasted collecting defaults.
Rent collection may be handled by a property manager, who will ensure that payments are made fully and on time before being put directly into the account. It can also manage the defaulter procedures if the rent is overdue, guaranteeing you don't lose out on the revenue the rental property is meant to earn and avoiding the need to hire a debt collector.
3. Greater Purchasing Power
Contractor fees do not qualify for volume reductions. The property management team will almost certainly be able to provide the service at a lower cost than the market price since it has somebody on staff, such as an in-house lawyer, or because it receives a volume discount. Cleaning services, pool maintenance, landscaping, accountants, carpet cleaners, and insurance agents are common examples.
Other savings and discounts may surprise you. Property management businesses, for example, can negotiate lower banking charges if a large number of their customers establish accounts with the same bank. The DIY landlord is unlikely to get any kind of discount.
You also won't have to pay money for office equipment, office supplies, property management software, or accounting software. These products are purchased by the property management firm, and you only spend a fraction of them.
4. Reduced Legal Costs
Expert property managers are well-versed in property law, eliminating any dangers in owning an investment property. Home managers must understand what it takes to keep a property legally livable, including any required improvements to the exterior and structure.
If a renter is hurt as a consequence of your home not being up to code, you might be facing a very expensive lawsuit.
Our property managers are certified, which means they must keep up to date on insurance regulations, landlord-tenant legislation, legislative changes, and industry market developments in order to safeguard all of their customers and respective properties.
5. Shorter Vacancy Periods
Every day that a property stands empty costs owners money. Thus the less time it sits empty, the greater for your pocketbook. Property managers keep a potential pool of tenants from whom to choose. Renters are actively hunting for you through property management business, so you don't have to go hunting for them.
Furthermore, well-managed properties tend to keep renters, resulting in fewer vacancies. A normal vacancy costs approximately one month's salary plus cleaning, lock changes, painting ruined walls, potentially putting in new flooring, making repairs as well as other renovations, marketing, and so on. You save money if you can limit the number of openings you have.
6. Tenants of Higher Caliber
What may make a job vacancy much costlier? A lousy renter, eviction fees, unpaid rent, and other damages may add big bucks to the expense of a typical, low-stress vacancy. According to Real Property Management, legal expenses for an eviction range from $300-$1,000. If you have three or four terrible renters in a row, your home may become a money loss, regardless of how well you originally invested.
A reputable property management firm will do a full tenant screening, including a background check, job verification, and a review of the renter's rental history. The manager will contact the employer or previous landlords and ask the necessary questions. Since he has dealt with so many applicants, he will notice the warning flags that a landlord who simply wants to put just anyone on the property would frequently ignore.
Furthermore, using a property management business to screen the renters protects you from rental scams involving "professional tenants" who just don't pay but are difficult to remove, as well as discrimination claims arising from inconsistencies in the screening process.
If you haven’t hired a property manager already, click here to learn more about our services and how an experienced property manager can assist you.