All property owners run up against a single most important question. Do you want to be your own property manager or do you want to hire a third-party property management company? In this article, we will briefly explain what is a property management company and what they do. We will cover the basics and foundations of property management as well as their main responsibilities and services that they provide.
Property Management Company and Responsibilities
Let’s begin with the basic concept of property management. It is defined as the operation control and oversight of real estate properties. It involves the managing of property that is owned by a different party. Property management companies basically act on behalf of the property owner to manage the lifecycle of the property while preserving its value and generating income.
The main responsibility of a property management company is to find and replace tenants and short-term guests. Choosing the right tenant for your property is not an easy task and therefore, one of the most important ones. Property management companies specialize in choosing good tenants wisely throughout a well-established screening process that basically includes analyzing a prospect´s financial qualifications, credit score, job, income, references, etc.
Marketing your property correctly is another big one. MRM for example offers professional photography services to highlight your properties and really illustrate the quality and effort invested in it. As you all know, eye-catching photos really make a difference in this industry. Other than that, effectively listing your properties on the main rental platforms such as Airbnb, Booking.com, VRBO, and even their own company websites, etc. On the other hand, digital marketing and social media have tremendously transformed the industry, and these companies stay on top in terms of new trends and best practices to take full advantage of these tools.
Property management companies are also in charge of collecting the money (rent). They possess automated payment methods and structures that greatly facilitate the collection process of the business which can be really tedious for landlords. The main idea is to manage properties more efficiently, maximizing revenue while spending less time. On the regulatory side of the business, these companies will make sure the contract is appropriate, legal, followed, fulfilled, and enforced. They will be in charge of fining tenants and/or guests if needed and if anything is broken it should be backed up by those contracts.
One thing is for certain and it is that people are unpredictable and stuff breaks. A property management company will monitor properties closely and maintain close communication with tenants and guests, providing 24/7 assistance and availability. This close interaction allows them to identify and schedule repairs and maintenance jobs that need to be performed. Fast response teams dedicated to guests and tenants and treating them as customers will make them stay longer and come back when it comes to vacation rental. Property owners need to realize that vacancy is the single highest expense for them and minimizing vacancy time is crucial. Therefore, property management companies make sure that the unit is ‘rent ready’ so it won’t stay vacant any longer and rent faster.
Reasons to Hire a Property Management Company
Property owners hire property management firms for various reasons. Some owners may have many rental properties in their portfolios, but lack the time or expertise to maintain those properties and deal with guests. Some owners only have an interest in owning rental properties and earning profits from them. Whatever the case is, MRM has the experience, systems, and infrastructure to help you respond quickly to the day to day operations of owning real estate while keeping costs down and the rental income coming in. Our services are designed and focused to relieve you of landlord responsibilities while still allowing you to maintain property ownership and maximize rental income.