Trusted property management provides landlords and tenants with a smoother rental experience. They keep landlords in the loop with market updates and value-added services that help their properties retain or increase their value.
Tenant screening, security deposits, evictions, and lease enforcement are regulated by state laws. Proficient property managers make sure all activities are in compliance with current regulations to protect their clients.
1. Excellent Communication
Many rental owners tell us they want their property managers to be able to respond to them quickly and efficiently. This is especially true when it comes to responding to maintenance issues or questions.
Prompt communication with tenants builds a trusting relationship, which leads to satisfied residents who are more likely to renew their leases and recommend the property to friends and family. This reduces vacancy cycles and increases revenue for the property owner.
Rental owners also want their trusted property management to keep them updated on the status of their investments, including any problems or concerns that need to be addressed. This allows them to make informed decisions about their investments and help them optimize their operations. This includes regular reports on rental income and expenses, maintenance work, and tenant concerns.
2. High-Quality Tenants
When it comes to rental property, quality tenants are the key to maximizing your profits. The right tenants will pay their rent on time, minimize wear and tear, and cause fewer problems. But finding the perfect tenant is like dating – you must work your way through potential applicants until you find someone who checks all of the boxes.
Attracting the right tenants begins with a compelling listing that highlights your property’s features. A thorough screening process is also important – you want to verify income and run credit and eviction reports. Finally, it’s important to establish an open door policy by being available to answer questions or address concerns. Providing multiple avenues of communication, such as email and an online tenant portal, is another way to show tenants you value them.
3. Competitive Pricing
Property management services typically come with a range of pricing options including rental advertising, automation in different parts of daily operations, and maintenance tools. The middle and highest tier plans also offer state-specific lease templates and other legal documents, discounted legal advice, and additional access to local vendors and leasing agents.
Trusted property managers offer competitive pricing based on market trends, which reduces vacancy cycles and maximizes revenue for owners. Moreover, property management services ensure that renters are quality tenants who pay on time and minimize wear and tear on properties.
Additionally, property managers provide assistance with taxation by filing for deductions related to property maintenance and management fees. This helps owners avoid complications and reduces administrative burdens. It also protects them from fraudulent schemes by unscrupulous landlords, guests, and property managers.
4. Excellent Rent Collection
Collecting rent from tenants and enforcing lease terms is a process that’s regulated by specific laws. Consequently, even the slightest oversight can have serious consequences. A proficient property manager has in-depth knowledge of the current regulations. They will make sure every aspect of renting, from tenant screening to evictions, adheres to the specified legal frameworks.
They will also make sure that all incoming funds are placed in the appropriate accounts. Mixing operating funds with client payments or security deposits into a single account is a big no-no and may cause you to lose money, face legal complications, or worse.
To avoid these pitfalls, your trusted property management company should set up one aggregate broker trust account and two individual security deposit accounts for the different properties they manage. This will help prevent any accidental commingling of the funds and keep your business running smoothly.
5. Tax Assistance
Trust accounts are an essential tool in property management that ensures compliance with state regulations. They provide a way for property managers to handle owner funds and tenant security deposits in an account separate from their business accounts that are used to manage company income and expenses.
This allows for proper separation of funds for each individual client or owner and avoids the co-mingling of accounts (this is illegal and could lead to an account freeze which would halt collection, payments, and/or disbursements). Depending on your state guidelines, these may be one aggregate account or multiple accounts for each owner or both operating and security deposit trust accounts.
These accounts are federally insured up to $250,000. Some property management companies also choose to offer interest bearing trust accounts if that is allowed by their state guidelines.