Investing in income properties has become increasingly popular with the housing market being as strong as it is in many areas of the country. The truth is that many people who invest in these types of properties do not want to do with the hassles of being a landlord. What most people do not realize is that the amount of money a property management company takes out of the rent per month is not very large. Most of the time the company will increase the rent and you will be making the same amount as if you were handling the property without any of the hassle. The following are problems that you might have with tenants that a property management company will handle.
Vetting Tenants
There needs to be an extensive background check as well as rental history check when renting out to new tenants. You do not want a tenant that has a bad history of destroying places they have rented or being evicted due to lack of payment. Property management companies do these on a daily basis and only consider the highest quality of tenants. You do not want your homeowner’s association or board to reprimand you with a fine due to allowing a person with an extensive criminal record in the property that you own. These companies will also contact the place of employment of the potential tenant to make sure that they will be able to pay as they are employed.
Late Payments
Late payments could be the most frustrating thing to deal with if you are a landlord. Not being paid after doing work and allowing someone to stay in your home or apartment can be one of the worst feelings there is. Property management companies will not only penalize tenants for late payments but can threaten to evict them. Having a lease written up by a business attorney or another legal team is a staple of property management companies. They deal with hundreds of tenants so their leases that are signed are in the interest of the property owner.
Tenants Destroying The Home or Apartment
Destructive tenants can be a nightmare for a landlord but property management companies are ready for everything. They will take pictures of all parts of the home so the tenant cannot claim that the damage was already there. Usually a tenant has about a week or two to report any damage after they have moved in. The pictures taken by the property management company can help in the case of a lawsuit to recoup money for the damages. Eviction is also an option if it has been written into the lease as the right to stay at a property you do not own while damaging it intentionally is not valid.
The above are reasons you need to consider hiring a property management company instead of playing the role of the landlord yourself. If you are looking for truly passive income then a property management company is right for you!
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