If you have taken on too many rental properties, it will be difficult to take care of everything on your own. If this sounds like you, hiring a property management company can help you out. Below is how a property management company can help you so you can decide if this would be right for you.
Screen and Select Tenants
When you have a rental property open, a property management company can screen and select the tenants. They perform background checks to verify their identity, check their credit history, check their income, and make sure they have a good rental history.
They will then inform the tenants that are turned down. For the tenants that are qualified, the property manager will decide who would be best for the rental. They may do this by who has the highest income and/or the highest credit rating.
Create Lease Agreements
When the tenant is chosen, the property manager will create the lease agreement. They will then go over the agreement with the tenant in detail to ensure they understand it. The lease agreement will be signed and the property manager will make sure it is executed.
The lease agreement should show the exact rent amount that is due each month, your acceptable payment methods, and how they can make their payments. The agreement should also show the consequences of any bounced checks or late payments, as well as how long the lease is.
Inspect Rental Property
A detailed inspection is done by the rental property before the tenant moves in and the tenant will be asked to sign a report to verify the condition of the home before they move in. This is important, as the tenant may claim something is damaged when it was not, such as a hole in the carpet or wall.
Handle Rent Payments
The property manager will collect all rent from tenants, as well as obtain late payments from tenants. For late payments, the manager will set up the late fees and ensure these fees are paid. One of the best ways to collect rent is by automatic payments. Contact your local bank on information on how you can get this set up. You could also let the tenants pay their rent online or set it up so that the rent is automatically deducted from the checking account on a certain day each month.
Accepting cash is not a good idea. For one thing, you will have no paper trail and no real proof that you received the payment. The cash could also be lost.
Talk with a property management company, such as Management Associates, in your area to learn of other ways they can help you.Share