While renting property is a great source of income it does come with its challenges. Property management companies are hired to handle these challenges along with other responsibilities such as hiring vendors to handle services around the property.
Challenges faced by property management companies
Turning down tenancy applicants
To get desirable tenants, tenancy applicants must be screened for credit ratings, rental history and criminal records. This means that not every tenant will be approved and property management companies have to explain why to the applicant and start the process all over again.
Late rent collection
Once a tenant has been approved, the primary role of a property management company is to collect rent each month. Property management companies set terms for late payment and will issue late notices and assess fees based on said agreement.
It is usually an unpleasant experience to have to evict a tenant. Eviction is the last resort and it only happens for a serious reason such as consistent non-payment of rent, unlawful activities on the premises, an egregious disturbance or property damage caused by the tenant.
Some tenants will not go peacefully when they are evicted and forceful removal becomes necessary. Also, there is a tedious legal process for tenant eviction that varies from state to state. Property management companies are familiar with local laws and will handle the process professionally and effectively.
Over time, a property owner may want to increase the price of rent on a property based on changes in the local housing market or cost of living. For example, the housing crash in 2008 brought mass foreclosures and high demand for rental houses. A rent increase may also be necessitated by renovations and refurbishments to a building.
Tenants are typically resistant to having their rent go up. They may react by refusing to pay, threatening to vacate or in other negative ways. Property management companies act as the middle men by communicating the increase to renters. They will also be familiar with any local laws around issuing rental increases.
Tenants have expectations of their own and when their expectations aren’t met they complain. Some examples might be a neighbor’s dark barking all day, poorly maintained appliances, a community playground in disrepair or mold inside the home. In other cases, there may be conflicts between tenants that need to be resolved with the help of a third party. Property management companies may find themselves in an awkward situation while trying to sort out tenant issues and complaints but they will have protocols in place such as written warnings to the offending party to help ensure a smooth resolution.
Let property management companies handle the headaches
The bottom line is that a property owner who handles his own rental management is going to be stuck with the day to day challenges and headaches of rental property management. When competent property management companies are hired they take on the stress, time and effort needed to manage a property and free up the property owner to collect income in peace.
Son-Rise Property Management is a full service property management company located in Bellingham, WA. Contact us today to see how we can help you find the perfect home to rent or manage your property.