Property management companies help landlords manage their properties. These companies are employed by property owners to help maintain and take over the day to day operations of renting.
If you have a property and are thinking about employing a property management company, you probably want to know exactly what they do, how much they cost and how to find the best ones.
What Do Property Management Companies Do?
There are a number of elements that property management companies help landlords with, these include:
Tenant Sourcing
Finding the right tenants is extremely important when it comes to property management. If employed in the early stages, property management companies can help with marketing to, and finding the right tenants.
Once they have conducted viewings and received offers, property management companies will lead the referencing process, making sure that all prospective renters have the proof of funds and references needed. This helps to reduce any risk of placing tenants that will not be respectful to a property, or not be able to afford the rent.
These tenant sourcing services are either carried out as part of the monthly retainer, or ahead of it. When it comes to pricing up this service, most property management companies will only take payment once renters are in situ.
Rent Collection
As a landlord, you want to make sure you get paid rent on time, every time. One of the main responsibilities of a property management company is collecting rent.
While this may sound easy, it can involve a lot of work if the tenants aren’t paying. A property management company will send reminders, payment options and keep track of any late payments. This helps landlords have peace of mind that they will be paid on time.
A lot of the time, property managers will also keep track of all financial records, including expenses, bills and any maintenance costs. This can help when it comes to tax returns – making the process easier.
Tenant Management
One of the main benefits or hiring a property management company is tenant management.
This includes answering any tenant complaints, investigating maintenance issues and being on hand to answer questions. Having a reliable point of contact for tenants makes them more likely to stay in a property long-term. This not only means consistent income for a landlord, but also removes the expenses associated with finding new renters.
Given that tenant management can be extremely time consuming, hiring a property management company to do this is a smart move.
Property Maintenance and Repairs
One of the best parts about hiring a property management company is being able to rest easy knowing your property is being taken care of. Property managers will regularly inspect the property, making sure that any fixes are done quickly. This can prevent larger issues forming.
If the plumbing is broken for example, they can make sure any issues are fixed before it becomes a serious issue.
Normally, property management companies will have their own network of contractors to help with repairs. That can mean landlords are less likely to pay for expensive repairs with huge delays.
Tenant Evictions
Despite your best efforts to screen tenants and manage rent collection, difficult tenants can still slip through the cracks. Property management companies are experts in dealing with these situations.
First, they will try and resolve issues through communication and negotiation. However, if this fails, property managers will initiate eviction proceedings, making sure that they are doing so in a compliant way.
This not only saves time but also lowers stress and reduces the risk of these type of issues becoming more severe.
Compliance
In the UK, there are a lot of rental laws and regulations that landlords have to comply with. Property management companies will know exactly how to make sure landlords are being compliant.
Additionally, given that laws around houses can vary based on region, and even change over time, landlords can rest easy knowing someone else is looking after the compliance.
If you are looking for a property management company in London, get in touch with J Property Management to find out more.
How Much Do Property Management Companies Cost?
If you are thinking about hiring a property manager, you might be worried about how much it costs.
The good news is that property management fees are usually taken as a percentage of the rental income, meaning you only pay them when you get paid. On average, these fees can be between 10-12% depending on your needs.
Whilst you might think that this sounds like a lot – it does mean you could receive over 88% of your rental income for essentially doing nothing. This makes it a smart service to invest in, giving peace of mind and protection to your property.
Finding The Right Property Management Company For You
Property management companies play an important role in the real estate industry by managing all elements of the rental process.
From rent collection and tenant communication to property maintenance and legal compliance, they make sure that properties are looked after and generate steady income.
For many property owners, the benefits—like reduced stress, better tenant retention, and fewer legal complications—far outweigh the cost of hiring a property management company. So, what are you waiting for?
