What is property management? This is a common question asked by both new and established landlords who are looking to streamline their business model and make their rental properties more profitable. The quick answer to the question, “What is property management?” is that it’s the management of a rental property by a third-party property manager. In Arizona, only licensed real estate agents can become property managers.
What is property management comprised of?
Property management companies act as a liaison between the tenants and the landlord. They provide all the services necessary to maintain a functional and profitable rental property. As a result, the landlord can enjoy hands-off, passive income. Here’s a quick look at some common property management services:
- Property marketing: Property managers take photos or video content to showcase a rental property. Additionally, they use multimedia assets to create an enticing ad that encourages rental applications.
- Tenant screening: Property managers show rental homes to potential tenants. Furthermore, managers also screen the tenants according to the landlord’s preferences.
- Rent collection: Rent collection is one of the biggest headaches for landlords. With a property manager, landlords never have to deal with it again.
- Property maintenance: Property management companies contract with maintenance workers and repair experts. This ensures the property remains in excellent condition.
- Property inspections: Routine property inspections are essential to ensure tenants are keeping the property in proper condition.
- Evictions: Sometimes, tenants fall behind in the rent or otherwise violate the terms of the rental agreement. If this occurs, the property manager will handle eviction proceedings.
These core services are typically what a landlord might think of when considering the question, “What is property management?” However, some property management companies offer additional services. For example, they might provide financial reporting to help landlords maximize their profits. In addition, some managers offer legal compliance guidance.
Why should landlords hire a property management company?
Many landlords first enter the business with a DIY mentality. They believe that, in order to achieve maximum profits, it’s best to do everything themselves. As a result, these landlords eschew hiring professionals. Unfortunately, the DIY approach is often more of a headache than it’s worth. And, perhaps counterintuitively, it can result in a less profitable rental property business. Furthermore, the DIY approach doesn’t lend itself to creating a passive income stream. And this, of course, is a prime motivation for entering the rental property business.
Landlords who do choose to hire a professional property manager quickly find that this is the solution they need to enjoy a genuinely passive income stream. Furthermore, property management is cost-effective. Here’s a quick look at some of the many ways property managers maximize profits:
- Reduced vacancy lengths
- Higher quality tenants
- Reduced maintenance costs
- Streamlined rent collection process
- Enhanced buying power
Furthermore, it’s often said that time is money. With a property manager taking care of your rental properties for you, you’ll have more time to focus on your other professional and personal pursuits.
Is professional property management beneficial for tenants?
If you’re a tenant Googling the answer to the question, “What is property management?” you’ll be pleased to learn that this approach is also beneficial for you. In fact, tenants often find it preferable to work with a property manager, rather than directly with a landlord.
One major reason for this is that property managers streamline the process. Tenants can usually pay their rent with a convenient online portal. They can also submit digital rental applications. In addition, management companies typically offer online submission of repair requests.
Professional property management companies are usually more responsive than landlords. In many cases, landlords have other business interests and obligations in addition to their rental properties. Often, they work full-time jobs and have rental properties as a side business. As a result, it’s difficult for landlords to respond quickly to tenants’ questions or repair requests. However, property managers are available to respond almost immediately. This is particularly important when a rental property needs emergency repairs.
Could you benefit from property management?
Pretty much every landlord can benefit from contracting with a property management company. This relationship could be particularly beneficial if you:
- Have or wish to acquire multiple rental properties.
- Want to enjoy passive income without a significant time investment.
- Have rental properties located far away from your own home.
- Work a full-time job or have other business interests in addition to your rental properties.
- Prefer not to have to deal with annoyances like rent collection, problematic tenants, and eviction proceedings.
- Want to ensure you are fully compliant with all applicable laws and regulations.
For all of your Tucson property management needs, look no further than New Concept Property Management. With exceptional credentials and a track record of successful results, we’re a leading property management company serving landlords throughout Sahuarita, Oro Valley, and the surrounding areas. Plus, we provide a broad range of services, from property marketing and tenant screening to financial reporting and evictions. Call us at (520) 305-3950 for a free rental analysis!