Property management is a system in which an outside party plays the role of the owner to preserve the value of a rental property. The outside party, or property management company in most cases, also deals with and manages any concerns tenants might have.
How does property management work?
Defining property management is pretty straightforward. The essential duties of a property manager are to collect rent, address maintenance concerns and record anything that happens at the property that would be worthy to note, like an overdue payment or calling an outside company to fix a leak. If you do plan to manage your property yourself there are a few vital steps to learn and keep in mind at all times:
- Make sure to know real estate rental laws. Specifically, landlord-tenant relationship laws or you could easily be taken advantage of by a tenant.
- If you own more than one rental property make sure to have the correct software to track who has paid their rent and who hasn’t. This is the easiest way to manage your tenants’ payments and keep track of maintenance requests or concerns.
- Start small. If you are managing your own properties this can be a feat in itself, so make sure you don’t overburden yourself by buying and trying to rent out too many properties when you are just starting out. It’s usually better to be on the safe side and just hire an outside company.
What does a property management company do?
In most situations spending money to have a private company manage your property and keep the value of your investment growing is justifiable. However, you may be interested in knowing exactly what a property management company does before investing in their services, so we have provided a list detailing why you need to hire an outside company.
- Property management companies collect rent from tenants. If you’re paying someone to take care of your tenants’ concerns and the property, in general, you would probably hope they’d also be in charge of collecting rent right? This is one of the most basic functions of property management but can help to relieve some stress caused by late payments.
- Property management companies record maintenance concerns and complaints and then will address the issue. This means you don’t have to deal with angry tenants or issues such as leaky pipes that may be beyond your personal skill set to fix on your own. A property management company will handle any issues that may arise without interfering with your life.
- Property managers can deal with tenants late on payments and those months behind on rent. Not a fan of confrontation? Leave it to the professionals to handle those awkward financial conversations. Property management companies deal with tenants directly which makes things easier and simpler for you.
- Property management companies will advertise your property to ensure vacancies are quickly filled. This may be one of the most important functions of a property management company, as vacancies can be extremely spendy for the actual property owner and getting them filled as fast as possible is of the utmost importance.
- Property management companies record everything that happens at the property to keep you in the loop. This can be especially important when it comes time to sell your property. Having an up-to-date maintenance log and records of anything else that may have happened or been an issue on the property provides a better, more detailed look at the property’s history for potential buyers.
How much do property management companies charge?
Property management companies can range in price from 8%-12% the total rent of the property, but this isn’t always indicative of the quality of their service. Ultimately, doing your research is the best way to determine the best rental management company for the lowest price, but if you’re in the Boise, Idaho area contacting DJW Property Management for a quote would be your best bet for lowest prices and highest quality management.