Are you a landlord or real estate investor who wants to hand over the management of your properties to a property management agency or company? This agency or company is a third party you task with handling your real investment or property operations. After all, dealing with tenants can be challenging. It can rob you of that peace of mind you need after investing in a property.
Outsourcing the day-to-day activities of managing your property to OC Property Management will enable you to focus on other pressing matters, but you need to know what to expect from such an entity before you sign the agreement.
Here are 5 key responsibilities of a property management agency:
- Attracting New Tenants to the Property
You want vacant units to be reoccupied as soon as possible. When a tenant vacates, a new one needs to be found so that rent can keep flowing steadily into your bank account. Therefore, a property management company must be in the business of attracting new tenants to the property whenever there is a vacancy.
This is achieved through advertising the vacant units, either on physical notices at strategic places in the locality or by placing ads on online listing sites.
- Determining the Suitable Tenants for the Property
Not every prospective tenant deserves the keys to the unit or a room in the property. The property management company must sort the tenant applications and screen every prospective tenant, asking questions and doing background checks. You sure don’t want to harbor criminals or terrorists on your property. You also don’t want a tenant with a long history of being taken to court by landlords.
A property management agency should use proven techniques and methods to pick the right tenants who come to stay for a long period, pay their rent on time, and cause fewer problems. This will involve doing criminal background checks and running credit checks.
- Coordinating Moving In And Out Of Tenants
When a tenant finally moves out, the property management company has to check the condition of the rental space. If it is damaged, the outgoing tenant has to be penalized. The property management agency will determine the security deposit amount that should be refunded to the customer. The company will also ensure the space is repaired, cleaned, and organized before the new tenant is ushered in.
- Handling Tenant Complaints or Conflicts
Tenants may complain about the new rules at the property or any other arising matter. It’s the responsibility of the property management company is responsible for responding to these complaints satisfactorily. The tenants may also have conflicts among themselves — when one tenant constantly plays loud music or disturbing the neighbors, for example. The managing company has to step in to calm the storms at such times.
- Collecting and Adjusting Rents
Here is the part you probably have been waiting for: rent collection. As a landlord or investor in property, you want to know how you will get the returns at the end of each month. Once you have hired a company to manage your property, you can sit back and wait for rent. It is its responsibility to collect rent. Furthermore, they can also adjust rents depending on the current economic situation, developments in the real estate market and other factors.
The management will also set rent payment deadlines and penalize late payers.
Wrapping It Up
The property management company will also handle the evictions where some tenants can’t abide by the T&Cs. It’s good to engage a property management company or agency that knows the landlord-tenant laws so as to handle each situation courageously.
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