Owning property is a great way to earn a steady stream of passive income, but it can also come with a lot of headaches. Chief among them is attracting quality tenants. It’s all well and good to have your property fully occupied, but if you’ve owned property for any serious amount of time, you no doubt understand what a pain it can be to have to deal with problem tenants. From having to chase down rent checks, to dealing with complaints from neighbors, to having to shell out extra money for cleaning, and repairs, a bad tenant can turn property ownership into a costly nightmare.
That’s where property management companies come into play. Many first-time property owners start out thinking that they can handle it all themselves, only to quickly find out the hard way that attracting the right tenants is a lot more work than it seems. Here are three key ways in which a good property manager can help:
- Finding the right rental price – Underprice your property and you could be missing out on revenue, overprice it and you risk higher vacancy rates. Many landlords will search through rental listings and online classifieds to get an idea of what other nearby property owners are charging, and use that to set their rental price. But, while this might give you a ballpark figure for the neighborhood, it is very inexact, and can actually raise a lot more questions it answers. How long have these listings been vacant? What are the unique specifics affecting the value of these properties? What are the unknown outliers driving the local average up or down? A good property management company will be able to perform an accurate, reliable, up-to-date market analysis in order to find the precise sweet spot for your rental price.
- Marketing and advertising – One of the major issues property owners struggle with when trying to fill vacancies is knowing how, when and where to market their property. And if good tenants can’t find your listing, they aren’t moving in. This is one of the most valuable and underrated services provided by property management companies. Management companies have extensive experience dealing with numerous properties, tenants and markets, so they will know exactly how to position your property, and target the exact tenant profile you’re looking for. Plus, property owners waste tons of money each year on useless marketing, so not only will a management company produce better results, they’ll also end up saving you money on marketing in the long run.
- Tenant Vetting – Busy property owners often don’t have the time or resources to properly vet prospective tenants, which can land them in serious trouble later on down the road. Your property management company will meticulously comb through each of your potential residents to ensure they are as reliable as possible. This includes running criminal background and security checks, searching through credit reports, verifying employment history, securing solid references and getting reports from previous landlords, all of which can be costly and time consuming for the independent property owner.
You can certainly do it on your own, but if you want to attract more tenants that won’t let you down, skip out on rent, damage your property, or otherwise cause you big headaches (and wallet-aches) hiring an experienced property management company is definitely the way to go. For nearly a decade, JS Tamers has helped property owners maximize their profits through quality tenant acquisition. Contact us today to learn more about how we can help you attract great tenants.