There are over 37,600 property managers in California alone. It accounts for 40% of the entire market and is worth over $145.2.
The reason for this growth is how much easier property managers makes life for anyone who owns rental property. They can make you a hands-free landlord that earns money on your property while you enjoy the sun.
Read on to learn three important reasons to hire a property management company.
1. Rent Collection and Tenant Management
One of the most important services that property management companies provide is filling your property with tenants. They'll market it, read applications, perform background checks, and handle any disputes.
This minimizes your turnover rate. The average for multifamily units is 47.5%, but this can cost you $1,000-$3,000 per unit that sits empty.
A property management company can also maximize your profitability through rent management. They can help you set the right rates and make sure it's collected on time.
This is essential in a time where at least 10 million or 20% of renters are behind on payments. They owe an average of $5,600 each for a total of $57.3 billion.
When the time comes, you won't have to have an awkward conversation about lateness because the property manager will handle it for you. They can even evict them on your behalf.
2. Taxes and Legal Compliance
Taxes are the bane of every professional, but a property management company is like a specialized tax broker. Let them handle all the long and complicated forms. They know how you can get the deductions you deserve and get the most money at the end of the tax season. You may even be able to write off their fees.
Property management companies also know the many other legal issues you'll have to face as a landlord. They're familiar with local, state, and federal laws that cover areas including but not limited to:
- Tenant screening
- Property conditions
- Lease agreements and terminations
- Rent collection
Their expertise helps you avoid expensive and time-consuming lawsuits or audits. You also won't have any stains on your record that could scare away tenants.
3. Management and Vendor Relationships
A property management company is essential for the maintenance of your property. After all, management is right in the name.
They'll have a crew of dedicated workers to attend to any repairs. They can handle issues while you're away or separate their team to handle issues on several properties you own.
A property management company's crew is the best in the business. Their expertise allows them to work with vendors that the general public might not have access to. They'll do a thorough job for a better price.
Where to Find a Property Management Company
The California property management market is booming. Renters and landlords love to get their hands on property in the area, but even a home in paradise can be difficult to control.
That's where property management comes in. It can help you find tenants, get the rent you're asking for, stay legal, handle your taxes, and handle management issues.
Residential Equity Management is one of the best property managers in California. Get our services today.