Just in the U.S., there are around 20 million rental properties. Beyond that, individual investors own a majority of those properties.
Some of the owners set out with a specific intention of buying up rental real estate. Yet, more than a few inherited properties or held on to a property when they moved for a job. Rather than simply selling off the properties, they rent them out.
Of course, functioning as a landlord is a challenge and even more so at a distance. That's where a real estate management firm can help.
Are you unsure what you get out of partnering with a property management company? Keep reading for some key benefits.
Get Your Time Back
Dealing with the day-to-day demands of managing a rental property can stretch someone pretty thin if they also work a job. Turning over the daily administration tasks means you get a lot of time back.
Instead of fielding daily or weekly calls, you occasionally meet with the property firm about current performance, projections, and critical decisions.
Avoid Legal Messes
Unless your day job involves real estate or the law, the odds are pretty good that you only have a vague awareness of the federal fair housing laws. You probably know even less about your state housing regulations.
That can get you in trouble with everything from tenant screenings to security deposit amounts and even clauses in a lease. A property management firm will understand those laws and how to keep them on the right side.
Improve the Revenue Stream
A good property management service will have systems to help them screen tenants, market empty units, and streamline payment. They'll typically maintain working relationships with local service providers, such as plumbers, that get them better pricing.
Stack all those things up, and you typically see fewer empty units, shorter vacancy times, and a meaningful boost in your annual revenue from your rental properties.
Avoid Personal Involvement With Evictions
In any given year, there are around 2.3 million people evicted in the U.S. It's one of the most unfortunate, unpleasant, and emotionally charged tasks a landlord can face.
When you partner with a property management company, you avoid personal involvement if an eviction becomes necessary. The eviction process becomes something that the property management company staff handles.
You avoid the stress of personally removing someone from an apartment or house.
Should You Partner With a Real Estate Management Service?
Rental property owners become landlords in a lot of ways. Someone who bought their first property in the same town or city may keep things hands-on.
For someone making a second career out of rental property investments or managing a property at a distance, it's often more practical to partner with a real estate management service. The logistics of management become impractical beyond a specific reach or number of properties.
Wolfnest offers property management services in the Salt Lake City, UT area. For more information about our services or to get started, contact Wolfnest today.