Do I or do I not need to partner with a property management company? This is a hard question that most real estate investors ask themselves.
Whether you're a landlord or you are looking for a way to make money with real estate, it's essential to understand how to manage property the right way. As a property manager, especially if this is your first time as a landlord, you'll have to wear many hats to manage your properties efficiently. And, this can be not only tiring but also time-consuming.
Experienced real estate investors Lawrence Jemal and Joseph Jemal have bought buildings in the NYC metro areas that are real estate management properties. This is one strategy that you can use to build a portfolio. Some companies are management owners, while others are management only and offer management services to the building owners.
Here's how a property management company can help you:
Reliable tenant screening process
If you've been a landlord before, you know how complicated the tenant screening process can be. Plus, if this is your first time doing it, you might wind up selecting a bad tenant for your rental property.
That's why using a property management company is a better choice for this process. As they have a reliable screening process, which they use to select tenants who rent long-term, pay their rent on time, and cause fewer problems.
Help with legal problems
If you want to avoid legal and financial problems, a property management company can help you. Even a single tenant can cause you a lot of legal issues, which can put your reputation as a landlord and real estate investor at risk.
How can a property management company help? These types of companies have a great deal of knowledge with rental situations, and they can protect you from potential lawsuits by screening and selecting the higher-quality tenants for you.
No vacancy periods
The rental market today is vast, meaning that you have a lot of competition out there. So, your properties may stay vacant for a long time without the help of a professional property management company.
A property management company can help by making cosmetic improvements to your properties to maximize your revenue. It can also help you set the right rental rate based on market prices so that you don't set the rent too high, which might prolong the time needed to find tenants.
Help with rent collection
If you have been a landlord before, you know that collecting rent from all your tenants can be time consuming and have collection issues. Not only is collecting rent on time every month essential for reliable cash flow, but you may struggle to convince your tenants to understand that even with late fees and other measures.
A property management company can help by acting like the bad cop and handle evictions if necessary, in case your tenants keep finding excuses for not paying rent.
A property management company can handle all the complex and time-consuming tasks of being a landlord. Leaving you more time to focus on your real estate investments.