Serious residential real estate investors put some thought into hiring a property management company when they decide to put their rentals under expert supervision. DenCO Property Management and Sales (DenCO) reduces the hassle of managing rentals, such as property maintenance, finding and retaining quality tenants, setting renter expectations, handling leaseholder requests, and collecting rent. After hiring a professional property management company, the owners will find out how much work is taken off their hands, giving them more time to focus on other aspects of their lives.
Is Hiring a Property Management Company Worth It?
The adage “time is money” comes into play when owners decide whether to hire a property management company. Managing rentals takes specific abilities and personality traits such as being thick-skinned, firm but fair, and can make decisions not based on emotion but on what is best for maintaining the asset’s value. Investors who hire expert management believe that dealing with day-to-day rental management tasks would keep them from exploring new business endeavors. Below are the benefits derived from hiring a professional.
- Marketing Savvy – They can find high-quality tenants quickly and successfully fill vacancies.
- Tenant Retention – Keeping good tenants safeguards rental income.
- Local Market Knowledge – Experienced property managers know how to price units for rent. They understand how the time of year and day of the month a unit is placed on the market affects its pricing.
- Rental Showings – They are physically available to show the property to potential tenants.
- Tenants Relations – Managing tenant relations can be challenging to the uninitiated. Property management companies interview potential tenants, handle complaints, collect overdue rent, and, if necessary, oversee eviction proceedings.
- Property Maintenance – Regular upkeep and occasional repairs are necessary to maintain asset value. Good property management companies have handymen on staff and possess a bench of seasoned service companies they rely on for plumbing, HVAC, electrical, tree service, and landscaping needs.
What Should Investors Look for In a Property Management Company?
Savvy real estate investors understand that the central role of property management is to maximize owner rental income and maintain asset value. They should know upfront what services they want the property management company to deliver before they start their search. They understand that a property management company’s primary role is representing them in the rental market, so professionalism and business acuity are musts in their search. Owners should go with their gut when interacting with a potential candidate when meeting or communicating with them. Missing appointments or delayed responses are warning signs that the person or company is not a good fit. They should look for the following:
- A modern website that offers helpful information to owners and resources for renters
- A legitimate business address with a clean and organized office space
- Professional marketing and communication skills
- On time for scheduled meetings and phone calls
How They Operate
Top-notch property management companies use technology and digital communications to stay on top of all rental property issues. They should offer:
- Online options to pay the rent and submit maintenance requests
- Digital processes to conduct renter screening
- 24/7 availability to respond to renter emergencies
- Modern accounting processes to pay property owners every month and deduct any maintenance and repair costs
- Provide financials on each property to help owners file their taxes
References
Check online sources for credibility. Use the web to identify current or recent renters and owners and reach out to them. Be aware that even the best property management companies have renters and owners who leave inflammatory reviews when unhappy—even if a property management company handled the issues appropriately. So, weigh negative input against positive reviews when assessing a property management company. Thoughtful due diligence will help owners find professional property managers who care for rentals as if they were their own.
DenCO is here for owners when they decide to put their investments under expert management. DenCO manages over 150 home, duplex, and apartment rentals in the DU, Washington Park, and other Denver neighborhoods and has been in business since 1990. Call us at 303-722-9688 or click here to complete a contact us form.
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