Property managers may seem an old fashioned choice in a world dominated by Craigslist and eBay, but they’re certainly worth hiring considering the legal landmine that novice landlords may unwittingly step into. For instance, according to Washington state laws, prospective tenants can sue landlords for discriminating against families and children in renting properties. Similarly, it is illegal for New York landlords to rent their property for less than 29 days. Property management companies are well aware of Federal as well as local regulations regarding renting out property, and can save you from potential problems. Here are a few more reasons why you should consider hiring professional asset management companies;
a) You don’t live close to the rental property or do not have the time for hands on management:
Right from fixing leaky showers to servicing fire alarms, managing everyday tasks related to the rented property need time and effort. Of course, you can assign the task to contractors, but how do you ensure that the contractor has attended to the complaint and if the problem is fixed. And what if a complaint is beyond the scope of the contractor? Not just tenants, but even the local council can sue you if maintenance issues are not addressed. The hired property manager can ensure that all major/minor complaints are attended to and the contractors complete their assigned task on time.
b) You need help to screen potential tenants:
There are several laws that legally bind a landlord from using his own discretion when choosing tenants. You may have rented the backyard along with the house. But, what if the tenant’s using the place to grow marijuana? The law of vicarious liability can hold you accountable! Apartment management and multifamily management units are well aware of these limitations and know how to tread these regulations. They’ll also help you screen prospective tenants by checking their rental history by following up with past landlords, checking their credit worthiness, checking their job stability, evaluating their debt ratio, and checking their FICO scores.
c) You own more than one property:
Property management services aren’t cheap, but they’re worth their charges if you have own several rental properties. Thus, expenses are spread out across different properties and offer better value for money.
d) Avoiding legal traps:
Do you live in an area with a rent control regulation in place? If it is so, will the rental income be substantial enough to be classified as revenue? Can you ask a tenant to vacate because you want to move in? Understanding all of these legal aspects takes time. It’s best to leave the job to professionals who know how to do it best!
The author of this articles stresses on the benefits of hiring a property management firm. According to him, if we need a well maintained property for maximum revenue, it is must to hire a well reputable apartment management firm.