Owning a rental property can be a rewarding experience, as it often generates a steady income. However, a rental property only generates income when a landlord has good tenants who pay their rent on time and do not destroy their units. Once a landlord encounters a problem tenant, owning and managing a rental property becomes difficult and time-consuming. Using a professional property management company has a number of benefits for landlords, especially those who own multiple properties. These benefits save landlords a significant amount of time and money and make owning a rental property more rewarding.
There are so many benefits to using a property management company. A property management company can conduct a thorough market study in order to set a rental price for your property, ensuring that you achieve the perfect balance between maximizing monthly income and maintaining a low vacancy rate. Property management companies handle all of the legal aspects of dealing with tenants and maintaining a property. Since Landlord-tenant laws vary by state and municipality, it’s important to know how to handle problem tenants and other rental issues properly.
Property managers handle evictions, property inspections, lease negotiations, lease terminations, and the collection of rent from tenants. They also manage the entire tenant screening process so that landlords get tenants that pay on time and take better care of their units. They make sure that each property is in compliance with all property codes and safety laws. These services can help landlords avoid costly lawsuits and legal problems. Property managers handle rent collecting and dealing with tenants that won’t pay as according to their lease. A property manager will contact a late-paying tenant until payment is received. If a tenant does not pay as agreed, a property manager can start the illegal eviction process. Using a property management firm can help shorten vacancy cycles, which cost a landlord money. After a tennant leaves, it may take a landlord several months to prepare the property to rent. Using a property management company reduces the amount of time a landlord spends making repairs, enabling them to get up and renting quickly.
The cost of your rental property—be it a house or apartment building—is not fully deductible for the year in which you pay for it. Landlords, instead, get back the property’s cost through depreciation. Depreciation involves deducting a portion of the properties worth spread out over several years to account for wear and tear to the property. Along with depreciation, landlords can also claim many deductions for their business.
Deductions may include property insurance, mortgage interest, advertising, property tax, maintenance fees, and much more. The fees you’ve paid to property management companies, are also deductible. Any accountant or attorney fees, real estate investment advisors, and other similar professionals are also deductions. They fall under the category of operating expenses when the work is related to your rental property. A property management company can help landlords determine which deductions to claim and help them get organized each tax season. This saves time and money, and can also save landlords from having to pay fines and penalties for filing their taxes incorrectly.
The most important personal benefit of using a property management company is that it allows landlords greater freedom. Not being tied down to the day to day responsibilities free you up as the owner to be able to purchase other properties or not. At least this way you have the time and choice. If you are in need of a Property Management company, contact us today. We’re here to help and we have the team that can make your life as owner a dream.