How Property Management Can Protect Your Investment

jeremy raglin Portland Rental News and Tips August 14, 2024 | 0

Are you thinking about hiring a property manager but wondering if it’s the right choice to make?

This article will share several great reasons to hire a property management company.

Tenant Screening and Retention

One of the most critical aspects of property management is tenant screening. This meticulous screening process ensures that you get responsible tenants who will likely pay rent on time and take care of your property.

But tenant management doesn’t stop at screening. Property management companies also focus on tenant retention, which is equally important. High turnover rates can be costly, leading to lost rental income, repair costs, and the time required to find new tenants. By maintaining good communication and promptly addressing maintenance, property managers help keep tenants satisfied and more likely to renew their leases.

Legal Compliance

Laws regarding landlord-tenant relationships, fair housing, eviction processes, and lease agreements vary by state and can change over time. A professional property manager stays updated on these legal requirements, ensuring that your property and lease agreements comply with all relevant laws.

Moreover, if an eviction becomes necessary, a property manager can handle the process efficiently and in full compliance with the law. This saves you from the stress and emotional strain of eviction and helps you regain control of your property more quickly.

Efficient Property Maintenance

Property maintenance is essential to preserving the value of your investment. However, handling maintenance requests, scheduling repairs, and conducting routine inspections can be time-consuming, especially if you don’t live near the property. This reassurance can instill a sense of confidence in your real estate investment.

Rental Property Maintenance Responsibilities: Landlord vs Tenant

Although sometimes tenants don’t realize it, rental property maintenance is their responsibility as much as it is yours. This can include certain responsibilities called for in the lease, such as the tenant replacing air filters once a month or light bulbs that burn out.

Identify maintenance issues with inspections

Rental property investors and property managers conduct four different types of inspections to help identify potential maintenance issues:

Move-in inspection: walk-through done with a tenant at the time they move in to identify concerns and document in writing and with photos the existing condition of the property

Routine inspection: by walking the property inside and out, normally conducted once a quarter

Drive-by inspection: periodically driving by the property at different times of the month – such as weekdays and weekend nights – to spot unauthorized activities that violate your lease and can lead to property damage

Move-out inspection: walk-through done with the renters when they vacate the premises to assess any damages beyond normal wear-and-tear and to compare with the move-in inspection report

Landlord rental property maintenance

Specific landlord responsibilities can vary from state to state, and also be governed by local landlord-tenant laws. In general, landlords or their property managers usually are obligated to:

Keep mechanical systems such as heating and cooling, and electrical and plumbing, in good operating conditions

Maintain structural items such as roof, attic, sidewalks, and driveway

Immediately handle any vermin or pest infestations

Keep common areas clean and maintained in multifamily property

Rekey locks in between tenant turnover

Ensure renters are not disrupting neighbors or other renters

Screen all tenants by using a rental application and conducting thorough background checks, being sure to treat all tenants fairly and equally

Provide smoke, carbon dioxide, and radon detectors (in certain geographic areas) to help provide a safe living environment

Promptly respond to repair requests and quickly perform repairs such as HVAC problems, plumbing clogs or leaks, security concerns such as a broken lock, or mold issues

Conduct routine exterior and interior inspections to track normal wear and tear and identify small issues before they become big

Tenant rental property maintenance

A good rental property lease should have terms and conditions (where allowed by local laws and customs) that require the tenant to help keep your investment clean and in good repair by:

Maintaining the property by cleaning appliances, keeping walls and floors clean, emptying the trash, and preventing mold growth

Avoiding damage beyond normal wear and tear, such as keeping unauthorized pets, tampering with smoke detectors or landscape watering systems, sub-renting to roommates, and using your property for unauthorized or illegal purposes

Reporting issues as they arise to avoid large and expensive damages, such as a slow water leak under the bathroom sink creating a breeding ground for black mold

Seasonal Rental Property Maintenance

Clearly there’s a lot of routine maintenance you can do to help avoid major repair bills. To make rental property maintenance less overwhelming – and to keep your investment as profitable as possible – it helps to develop a seasonal rental property maintenance schedule.

Winter

Winterize pipes by re-wrapping them with insulation to help ensure they don’t freeze and burst during sub-zero temperatures.

Have the tenants keep a faucet slowly dripping at all times to maintain water flow, reminding them of their responsibility to maintain the property if they complain.

Flush the water heater every couple of years to avoid mineral buildup that could overwork the heating elements when the weather turns cold.

Prune trees and shrubs away from the exterior walls and roof to avoid property damage and keep rain gutters clean.

Inspect the roof and repair cracks that could expand and lead to serious water damage due to repeated freeze and thaw cycles.

Spring

Clear rain gutters and areas around the foundation of any winter-related debris.

Consider making landscaping improvements such as planting flowers and shrubs or reseeding the front lawn to improve your property’s curb appeal and increase tenant retention.

Power-wash exterior surfaces and repair any chips or cracks that can lead to water seepage or dry rot.

Conduct a semi-annual inspection of your HVAC before summertime arrives.

Summer

Ensure that outdoor amenities are clean and in tip-top operating condition for your tenant’s enjoyment and the safety of your property.

Double-check that gates and locks are in good working condition and rust-free.

Inspect landscape watering systems for leaks and re-set programmable timers to optimize water usage during the hot summer months.

Seasonal pest control helps to prevent ants, spiders, bees, wasps, and other pests from invading the inside of your tenant’s home.

Fall

Inspect the exterior of your property, looking for items such as loose roof shingles or siding, and areas that need to be caulked or re-grouted to keep small items from becoming big and expensive.

Conduct a complete safety inspection of outside supports and railings as well as un-level sidewalk and driveway surfaces that could lead to trips or slips during wet autumn weather.

Pay close attention to gutters and downspouts that are clogged and could create ice jams as temperatures start to freeze.

More

Financial Management and Reporting

Financial management is a significant part of protecting your investment. Property management companies collect rent and make payments on time and in full. They also manage the property’s financial records and more. This transparency lets you monitor your investment’s performance and make informed decisions. This financial savvy, combined with the security of knowing that professionals are handling your property’s economic aspects, can provide a sense of confidence and peace of mind.

Stress Reduction and Peace of Mind

Finally, one of the most significant benefits of hiring a property management company is the peace of mind you will enjoy not having to do the work yourself. Whether expanding your investment portfolio, pursuing other business opportunities, or simply enjoying more free time.

In conclusion, property management is invaluable for protecting your real estate investment. From finding and retaining quality tenants to ensuring legal compliance, maintaining the property, and managing finances, a property manager takes on responsibilities that can otherwise be overwhelming for property owners. By doing so, they help you protect and grow your investment, allowing you to reap the rewards of real estate ownership without the associated headaches.