Hiring third-party property management services does not sound like a decision that makes sense economically. Outwardly, property management services seem like companies that landlords pay for nothing. However, that is not the case since these third-party companies accomplish a lot to simplify landlords’ lives. Above all else, property management services also decrease the costs of maintaining properties. In what way? Find out how these third-party companies contribute to property maintenance cost reductions.
Reduced maintenance expenses
There is no better embodiment of cost reductions through property management services than reduced maintenance expenses. Landlords incur very high maintenance expenses on the property, but you can significantly reduce these costs through reliable property managers in Atlanta or other cities based on your location. Property management companies like Evernest, Mynd, and Excalibur have their maintenance workers on standby to swiftly fix any damage. Instead of hiring a maintenance contractor to resolve electrical and plumbing issues, property management companies easily send one of their staff.
The costs of fixing these minor issues fall under the small monthly subscription fee paid to the property manager. Even when a maintenance job requires more significant expertise or time, these services can negotiate prices with companies associated with them. That enables you to benefit from the discounts available to them that would otherwise be inaccessible to individual landlords.
Property managers thoroughly screen tenants
Screening tenants can contribute to reducing property management costs for landlords. You will have the best people occupying your property by thoroughly screening tenants. The screening process checks several metrics to find the best tenant instead of settling. For example, the screening process involves assessing potential tenants’ credit score and their affordability based on monthly income and other related data.
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How does this save expenses? Since tenants who could not pay rent every month might fail the qualification process, there might be fewer issues with the qualifying candidates. As a result, you won’t waste funds by sending them delayed rent notice letters and starting the eviction process. Also, when tenants do not pay rent, those expenses come out of your pocket. All of these expenses can be avoided by thoroughly screening each potential tenant that wishes to live on your property.
Minimal legal expenses
In addition to thoroughly screening your tenants, property management companies can also reduce legal and operational expenses. There are various legal hoops that you might need to jump as a landlord to qualify a tenant until they move in. For example, you might need to draft legal documentation and even negotiate for a high-value property. Handling this alone could open up a legal can of worms that no one can quickly close. In addition, the legal expenses that propagate from agreements that were not well-written could far exceed expectations.
You can get a lawyer to draft these documents on your behalf to mitigate this. Legal fees are expensive and increase your operational expenses, but hiring a property management system can significantly reduce them. Since property management companies have their legal team, you can benefit from their advice and even pre-made agreement templates. By paying the monthly premium for property management services, you can get the legal coverage every landlord needs to avoid any more extensive problems down the line.
Preventing city fines and penalties
Newer landlords in the market could be exposing themselves to city fines and penalties by going solo on renting out their property. Depending on the property’s location, the city it falls under might have excessive building and housing codes. Being a babe in these woods could result in hefty fines, whereas swimming with bigger sharks that have done this many times could protect you from these expenses.
Also, since property managers ensure routine maintenance is conducted on the building, you can be protected from potential future fines. Since the regular maintenance ensures that the property continues meeting housing and building codes, you can avoid paying penalties from any random inspections that the city might conduct
Marketing and advertising cost reductions
Canvassing tenants can be costly, depending on your location. To get tenants, you might have to advertise on local news bulletins, social media, notice boards, and property listing websites. These costs can mount up, and if you have a large property, these expenses can get very high before all units have tenants. Hiring a third-party property manager can reduce these costs as well.
Property management companies have access to markets, allowing them to advertise and get tenants for a very minimal price. Since they will be managing your property for you, they do this on your behalf with the monthly premium paid to them. At the same time, the advertisement campaign will not last for a long time since property management companies mostly have tenants on hand. Therefore, using a property manager does reduce costs significantly.