If you’re considering making a real estate rental investment, you’re probably toying with a common dilemma. Should I use property management services or not?

The property management market is huge and it’s expected to hit $6.16 billion by 2028. If you’re a landlord, it can be tempting to keep that money in your pocket, rather than pay out for a property manager.

But remember, there’s a lot more involved in managing a property than first meets the eye. Are you ready to answer that call at 3 am and fix that leaking pipe? Or would you like a company to take care of that for you?

Let’s take a closer look at exactly what property management services are and what they can do for you.

What Are Property Management Services?

Property management services take care of the day-to-day running of your investment properties.

They allow you to keep your distance. They are the point of contact for the tenant, handling all of the queries. They will only come to you when problems arise that require your involvement.

They schedule tasks throughout the month and year so that nothing is left to chance. They collect the rent and provide you with the paperwork you’ll need to complete your taxes. 

They keep up to date with local landlord-tenant laws and help you make sure you stay on the right side of them. For example, they handle tenant screening and eviction processes. They can be legal minefields without proper expertise.

A major benefit of working with a property management company is that they make out-of-town investment possible.

You may be based in Georgia, California, or Texas, but have rental investments in Tennessee. There’s no need for you to answer those tenant calls. You can allow local property managers to do all the heavy lifting for you.

Key Services of Property Management Companies

Property management companies can handle almost everything the landlord would normally deal with. We’ve distilled this down to 7 key areas.

Property Marketing

Marketing your rental is a key element of property management.

They will arrange for your property to be photographed to its best advantage and then create a listing that will go online. They may use social media, newspapers, and other platforms to reach the widest audience possible.

After generating interest in the property, they’ll then arrange showings. If you’ve already got a tenant living in the property, they will liaise with them to arrange a mutually convenient time for the showing. 

It’s also become increasingly common to provide virtual tours. They allow a wider audience to view the property first, which can help to ensure that only seriously interested parties tour in person.

Tenant Screening

The purpose of tenant screening is to find tenants that will pay, stay, and care for your property.

To do this, property managers can check:

  • Credit history
  • Criminal records
  • Income to rent ratio
  • Bankruptcies
  • Request references

You are within your rights to make these checks and also to set requirements such as no smoking or no pets.

But it is unlawful to discriminate against any potential tenant on the grounds of a protected status. This includes things like sex, national origin, race, religion, and disability among others. 

If you’re an inexperienced landlord, this can be a minefield. But property management companies have the experience to do this lawfully. They’ll make sure you find the right tenant while following the Fair Housing Act to the letter. 

Rent Collection

Rent collection sounds easy, but that’s not always the case. Likely you’ve got your hands full with your day job and don’t want to spend time chasing your tenants for their rent each month. Let property managers do that for you and all you’ll have to do is watch the rent come into your account.

Liaising with the Tenant

Proactive communication with tenants is very important for a smooth-running rental. Also, when tenants raise concerns, they need to find a listening ear at the end of the phone. Otherwise, they might start looking around for other options.

Property management services liaise with tenants about:

  • Inspections
  • Payments due
  • Maintenance

By proactively reaching out to tenants, property managers help them feel settled and keep concerns to a minimum.

Maintaining the Rental

Landlords are legally obliged to make sure that the property is in a good general state of repair at all times. This includes ensuring these vital services are working at all times:

  • HVAC
  • Electrical
  • Plumbing
  • Gas
  • Any supplied appliances

Regular inspections and preventative maintenance can help to keep landlords’ costs down in the long run. From time to time, emergencies such as water leaks or HVAC breakdowns will happen. 

Property management companies often have their own team of contractors they can call on at any time to fix these issues. Rather than having to call around in the middle of the night, let the company do the hard work for you.

Property Inspections

Regular property inspections have a two-fold purpose. 

Firstly, they ensure that the tenant is keeping the property in a good state of repair. They will look at the standard of cleanliness and the state of the yard, for example.

It also provides an opportunity to identify and address any maintenance issues before they get worse.

Handling Evictions

While every care is taken to find the right tenants, from time to time evictions happen. Evictions need to be handled very carefully. There are legal processes to follow to the letter.

Property management companies have the expertise and experience to handle them correctly. That will allow you to get your rental back on the market as soon as possible. 

Why It Pays to Use Property Management Services

It’s true that property management services aren’t free, but they give you so much freedom.

They liaise with the tenant and keep the cash rolling in. They arrange for scheduled and emergency repairs, keeping your property in great condition. And crucially, they make sure that you are meeting all your legal obligations.

Property management can allow you to own multiple rentals, even out of state, without having to do the hard work.

At Memphis Investment Properties, we provide outstanding property management solutions.

Call us at 901-244-5820 or contact us online to see how we can help you.