Property management companies perform far more duties than simply collecting rent. They market properties, show them to potential tenants and conduct screening processes in compliance with Fair Housing laws.
Landlords often have limited time and funds available for property maintenance tasks. A property management service can save landlords both time and money.
Legal Responsibilities
Landlords have certain legal obligations when renting out properties to tenants. These responsibilities include adhering to housing codes, making sure their properties are habitable, and responding promptly when tenant issues arise. Landlords can save themselves the stress of managing complex issues themselves by hiring a property management company that specializes in these tasks – they’ll handle these duties for them!
Property managers are also accountable for finding qualified tenants to rent their spaces, such as advertising vacancies on various platforms and taking applications, while conducting thorough tenant screenings that adhere to Fair Housing laws. A professional leasing agent may prove particularly valuable if landlords participate in affordable housing programs which require them to rent affordable units to low-income residents.
When hiring a property management company and they fail to fulfill the duties stipulated in their contract, an owner may sue for breach of contract. In order to file such a suit successfully, evidence such as your lease or management agreement and letters or notices received may be needed along with photos or videos showing what went wrong on your property.
Tenant Screening
Landlords need the tenant screening process in place to make sure they’re renting to reliable tenants, which involves verifying an applicant’s criminal history, previous evictions and outstanding debts to help make an informed leasing decision. Landlords also use it to contact former landlords and verify employment so that they can assess an applicant’s track record for paying rent on time and being an ideal neighbor.
Tenant screening services play a key role in helping landlords comply with fair housing laws and credit reporting regulations that prevent discrimination based on protected classes such as race, color, national origin, religion, sex and familial status.
Landlords must ensure that their screening criteria is consistent and objective in order to defend themselves against discrimination claims. Record keeping can help in this regard – be it online through services such as Stessa or Roofstock or on paper using folders.
Rent Collection
Rent payments are the cornerstone of landlord income. Collecting on-time rent is key to guaranteeing consistent revenue generation at their properties and that landlords have money coming in each month.
Landlords and tenants should collaborate in creating a payment system that benefits both parties involved, which can be achieved with a written lease agreement laying out when rent is due, how it should be paid, any consequences for late or nonpayment, etc.
Property management companies can assist landlords and tenants in abiding by state and local rent collection laws, which will prevent legal battles that threaten real estate investing profits and costly lawsuits from developing.
If a tenant believes their landlord is failing to collect on-time rent payments, they can file a complaint or demand letter with their property management company. If this doesn’t resolve their dispute, legal action might need to be taken; small claims courts usually don’t permit lawsuits for services not rendered yet.
Maintenance
One of the more time-consuming aspects of being a landlord is responding to maintenance requests promptly, which can cost tenants their tenancies and erode relationships with you as their landlord. Property management companies will handle this on your behalf (or with your input). They conduct regular inspections of the property to monitor its condition, make recommendations regarding repairs, renovations or refurbishing as necessary and even suggest improvements that increase rental income by increasing property values; additionally they arrange services with specialist vendors while overseeing this process, plus they can even find replacement tenants if one moves out before their lease ends! They can even find replacement tenants for you should they need to leave before their lease ends – all at your expense!
Evictions
If a tenant violates their lease terms, landlords may need to evict them. Unfortunately, it can sometimes be hard for landlords to detect violations; therefore it’s crucial that they become acquainted with eviction processes and laws in their area. A property management company will be able to assess situations quickly and take necessary actions on behalf of landlords or in collaboration with them as needed – they may even send in their own inspector team to observe and record any possible violations on the property.
Once a landlord serves their tenant with a “Rule to Show Cause,” they must appear at court for a hearing where they must present their case as to why they should not be evicted. Once a judge rules in favor of the landlord, sheriff or constable services can be called in order to forcibly remove them from their home.
