Investing in a rental property is a popular and effective means for earning a steady, passive income. However, handling regular and unexpected maintenance tasks as well as dealing with problem tenants can be a stressful experience. Fortunately, appointing a Colorado Springs property management company to take on many of these responsibilities can help.
Tasks You Should Leave to a Management Company
The following is a list of responsibilities property managers should be delegated to do on your behalf.
1. Set a suitable rental rate
Setting the appropriate rental rate is crucial to attracting prospective tenants. If the rent is too high for the area, it will deter inquiries, while charging a rate that is too low will result in a major dent in your profits. Setting a suitable rent amount is based on the property’s location and involves researching comparable rates in the area. Property managers are knowledgeable and experienced in this responsibility and will suggest rates that attract the right tenants while simultaneously keeping in mind your financial needs.
2. Tenant screening
Professional property managers have full access to background and credit history screening agencies that can uncover criminal histories along with past credit issues. By clearing prospective tenants of criminal and financial issues, there is less risk of them defaulting on rental payments or damaging the property. Additionally, property managers verify employment and income to ensure the applicant can afford the monthly rent.
3. Complaints from neighbors
If your tenant’s late-night parties are upsetting the neighbors, the property manager will discuss the issue with the tenant to stop the behavior. Should the tenant fail to abide by the request, a property manager can begin the necessary legal steps to begin an eviction. This prevents you from confronting the tenant directly.
4. Maintenance and repairs
Property managers handle all maintenance and repairs on the property with their own contractors. These often include after-hours emergency calls that would make it difficult for owners to handle themselves. No owner wants to receive calls or messages during the night from a tenant for repairs that can’t wait till the morning. Many managers possess a contractor’s license and are qualified to make repairs or have a team of contractors to call upon. Many companies also use an online request website for tenants to file requests quickly and easily.
Other tasks may include clearing walkways and driveways of snow, as well as handling landscaping and pest extermination. Juggling various contracts for these services would not only be time-consuming, but may result in higher costs.
5. Collection of rent and other payments
Property management companies ensure that tenants pay their rent on time to a pre-specified account. They also enforce late fees if payment is not on time. Should the tenant default on payments, the property manager, through their attorney, can initiate eviction proceedings. Handling an eviction on your own could result in costly legal fees and time away from other important responsibilities.
6. Landlord-tenant law compliance
Compliance with many federal, state, and local laws is a requirement in the rental property business. Laws governing tenant screening as well as race, religion, and disability discrimination must be followed when dealing with tenants. Fortunately, management companies are knowledgeable in these laws and train their staff to ensure they are current with any changes. As an owner, it is often difficult to stay abreast of the numerous regulations involved in the landlord-tenant relationship.
As a rental property owner, recruiting a management company to handle the above-described tasks avoids problems in not only recruiting the right tenants, but ensuring their maintenance and repair needs are efficiently met. Tenants that call several times a month, complain about property upkeep, or fail to pay rent on time could easily consume many hours of your valuable time. Property management companies relieve you of these burdens so that you can focus on other pertinent responsibilities.
Contact us for a free rental property management assessment and rental analysis of your Colorado Springs home at 719-471-RENT (7368).