Improving the Value of Your Property Through Management

One of the biggest, and often overlooked, ways to increase the value of an investment property is through effective property management. Even if you are a completely hands-on landlord, you should still consider hiring an experienced property management company. The increase in the value of your rental property will easily outweigh the expense of property management fees.

How can a property management company increase the value of my property?

Shorter Vacancy Cycles

Having vacancies between tenants can be a serious drain on a property’s value and hurt your bottom line. That’s why it’s important to keep these vacancies as short as possible. But, filling a vacant unit requires time-consuming showings, advertising, and repairs and additional build-out - which could be considerable depending on the previous tenant. 

An experienced property management company can greatly reduce the time period between tenants (and the headache for the landlord) by:

• Handling all the showings
• Completing necessary repairs while the unit is still occupied
• Leveraging their advertising resources to attract more potential tenants

Tenant Screening

The importance of screening tenants is often underestimated. Without effective screening, you could end up with tenants who don’t pay rent on time (or at all), damage your property, disruptions to your other tenants - the list goes on. Property management companies have seen thousands of tenant applications and have more experience when it comes to identifying red flags. The volume of applications they see also gives them access to better resources when it comes to background checks, as well as validating references and employment history.

Decreasing Tenant Turnover

Every time a unit becomes empty, the landlord has to pay for maintenance, repairs, and cleaning in order to attract a new tenant. The less a unit turns over, the less it hurts your bottom line. When you have a dedicated property management team to take care of the tenants and building maintenance on a regular basis, tenants are less likely to move out. They are also more likely to tolerate reasonable increases in rent.

Quickly Responding to Maintenance Requests

Even experienced landlords underestimate the maintenance costs for a building. Ignoring issues that seem minor to begin with can turn into much larger (and costlier) issues down the line. Not only can a property management company ensure that maintenance requests are completed in a timely manner, but they often have in-house staff and relationships with local companies that allow them to get work done at a lower cost.

It’s important to note, not all property management companies are created equal. You may need to do a little research to find one that will meet the needs of your individual property.

Want more information? Give us a call anytime to learn more about the benefits of hiring a property manager.