Buying a Rental Property? Consider a Property Management Company
Is buying a rental property on your to-do list? Smart decision! Investing in a rental is a great way to generate a source of extra income. But that’s not all; buying a rental property can also offer tax advantages, hedge against inflation, diversify your portfolio, and boost your long-term financial security.
But let’s be clear: Investing in a rental also requires a major commitment of time and effort. From finding and screening tenants, to marketing the property, to dealing with repairs and maintenance, owning a rental property often feels like a full-time job.
That’s why so many experienced real estate investors work with long-term rental property management companies. This strategy can save you significant time and treasure, as well as reduce your stress levels.
Let’s take a look at the many benefits of property management.
Marketing for Your Property
Let’s start with the basics: marketing your rental property. Once you’ve finalized the sale, you want to start earning as soon as you can. That means marketing the property to prospective tenants.
But effective marketing is easier said than done. There’s a reason (or 50) why companies hire marketing professionals. Long gone are the days of placing an ad in the local paper and waiting for the rental applications to come in.
In today’s market, consumers are sophisticated and tech-literate, and they use multiple channels to find rental housing. Potential tenants expect a polished social media and web presence. To achieve this, landlords need high-quality photos, skilled copywriters, and digital videos.
If these tools aren’t in your skill set, it’s hard to compete. That’s why it’s best to leave the marketing to professionals with experience in your local area. Property managers know how to write effective ads, take compelling photos, create videos, host open houses, list on the right websites, and use social media tools to market your property.
The better the marketing strategy, the lower your vacancy time. That means more money in your pocket at the end of each month.
Securing Long-Term Tenants
Next, let’s talk tenants. It’s one thing to simply recruit tenants… but it’s better to secure highly qualified tenants that’ll be there for the long term.
Why does it matter? Because short-term tenants may fill a rental, but they’ll end up costing you more. Consider expenses such as:
- Vacant periods with lost rent
- Cleaning costs in between leases to prepare for new tenants
- Cost of changing locks in between tenants
- Expenses related to painting the walls, replacing carpet, repairing damage, and more
These expenses add up. The bottom line? Long-term tenants are more cost-effective. Fortunately, long-term rental property management companies know how to screen, recruit, and retain long-term tenants.
The process starts with effective screening. For property owners, using a long-term rental property management company to take care of screening lifts a huge burden. Not only is screening tenants time-consuming, but the process also has a learning curve.
But experienced property managers have screened hundreds (or thousands) of tenants, so they know what to look for. They can quickly spot positive qualities (like a history of on-time rent payments, taking good care of the unit, and more) as well as highlight any potential red flags.
Property management companies also help retain, as well as recruit, tenants. One of the many benefits of property management is that issues are dealt with quickly. When problems, such as repairs, are handled in a timely manner, client satisfaction increases. This means client retention increases, too.
A reputable property management company knows how to keep tenants happy. For renters, a responsive and available company is an important benefit. For property owners, this means decreased tenant turnover and more income.
Prevent Legal Issues
Though no one wants legal challenges to arise, the reality is that legal issues can, and all too often do, come up. And as any experienced landlord will tell you, dealing with legal issues can be a huge headache.
Just one bad tenant can cause a host of financial and legal burdens, siphoning away time, energy, and money. That’s why another key benefit of property management lies in the prevention of legal issues.
But unless you’re already an attorney specializing in housing issues, you probably don’t have time to read, learn, and keep up with the myriad rules, regulations, and standards that govern housing at the local, state, and federal levels. That’s where property management companies really come into play.
Property management companies thoroughly understand landlord tenant and fair housing laws, so that you stay in compliance. This helps you avoid any potential lawsuits, which saves you time and money (not to mention stress).
Another benefit — property managers also manage legal issues such as:
- Tenant evictions
- Rent collection
- Security deposits
- Unit inspections
- Tenant screening
- Signing and terminating lease agreements
- Unit condition and safety
Often, property owners don’t feel comfortable with some of these tasks. Property managers can handle them on your behalf, especially in situations where professional experience and expertise are a necessity.
Long-term rental property management companies help improve tenant satisfaction and retention. When the property management company serves as the single point of contact for all tenant interactions, tenants know how to access information and who to contact.
For you, as the property owner, this eliminates middle of the night emergency phone calls to the plumber, reducing your stress and worry. When a situation arises, the management company is there to handle it.
Property management companies maintain relationships with local service providers, tradesmen, and vendors, too. This takes another burden off of your plate. You won’t have to track down contractors, compare quotes, and read reviews. Your property manager already has standing connections with local businesses that provide services; this helps get the best prices and reduce costs.
Some property management companies even have their own in-house maintenance staff, while others may have standing contracts with service providers. This means discounts on work provided. Plus, regular inspections and maintenance lead to the need for fewer repairs, saving money over the long run.
If you approve it, the property manager can even oversee repairs and maintenance on your behalf. This allows you to do all the other things you need to do, without wasting time waiting around at a job site. Working with a property manager even allows you to invest in rental properties from a distance, so buying rental properties out of state is a convenient reality.
Overall, property management benefits to investors boil down to less headaches, less stress, and more freedom. After all, the old saying “time is money” holds true. Your time is valuable, and the last thing you want to do is chase down late rent payments, deal with unhappy tenants, micromanage repairs and maintenance work, or research the fine minutia of housing law, let alone market your property so you can recruit and screen quality tenants.
A property management company takes care of these tasks for you, reducing your workload and your stress level while saving you money. If your time and your quality of life are important to you, consider working with a property management company on your next investment.
Invest in Bend & Mt. Bachelor Property Management
Are you ready to learn more about investing in property in Bend? It’s a smart move, as this desirable Oregon city has seen consistent population growth for years. It’s not hard to see why; Bend is an outdoor-lover’s paradise, known for its many recreational opportunities. In recent years, as the trend toward working remotely has increased, more and more people look to make Bend their home.
Invest in Bend is here to help. We offer a robust range of services for investors, from selling and buying properties to exchanging and evaluating real estate investments. Our experienced guidance can help you navigate the local market with ease, so you can make informed decisions about when, where, and how to invest.
Best of all, after you find that perfect rental property, our sister company Mt. Batchelor Property Management is here to take care of it for you. Mt. Batchelor Property Management offers a full range of services, from marketing the property, to handling maintenance and repairs, to finding and retaining tenants and more.
Simply put, they’re the best full-service property management company in Central Oregon, and that’s largely because they take their motto — “treat each owner’s investment as if it were our own” — to heart. That means you’ll have help finding, purchasing, and managing your Bend, Oregon investment property at each step along the way.
Investing in a rental property offers many benefits but dealing with the day-to-day responsibilities of being a landlord can feel like a full time job. Fortunately, working with a property management company simply makes your life easier. It’s the best way to reap the many benefits of investing in real estate in Bend.
Would you like to learn more about how Invest in Bend and Mt. Batchelor Property Management can help with your next investment? Simply contact us today to learn how our professional experience and expertise can work for you.