Seattle has one of the best real estate markets in the US. In 2015 alone, over one million new renters signed rental lease agreements in the city. This increased demand for housing naturally attracts property investors and higher rental prices. In fact, the prices have shot up significantly, with some properties even witnessing unprecedented percentage increments. With this new found fortune, it is easy to conclude that Seattle landlords are a happy lot. Well not all of them are. Even though the market seems to be on a bubble, some property owners still have to ensure the investment stays in good condition, deal with problematic tenants, handle the finances, source quality clients and comply with regulations. Furthermore, they have to compete with other landlords in the area.
No wonder knowledgeable property owners contract experienced property management companies to run the investments. If you are a property owner, you too should consider hiring a competent property management company and enjoy the following benefits.
1) Peace of Mind
Managing a rental property is challenging and at times utterly frustrating, more so when you have difficult clients, or you are unable to attract tenants to your property. There is also always the likelihood of property damages and other complications arising. If you, as the property owner, try to address these issues by yourself, you can certainly become stressed and overwhelmed. However, by enlisting a reliable property manager you will have transferred all the rent related headaches to him or her. Leaving you peaceful and free to attend to other equally important matters.
2) Active Property Marketing and Advertising
A frustrating time for a rental property owner is when the home becomes vacant, and there are no interested clients. At such a time, most landlords have to interrupt their daily schedules to market and advertise the vacant property. The opportunity cost of the empty house doubles since besides missing out on the rental income, the landlord has to commit his/her time and resources. Fortunately, you can avoid all these challenges with the help of a competent property manager. They know what kind of advertising and marketing tools are ideal and useful on your property.
3) Quality Tenant Screening and Placement
Every landlord longs for good quality occupants for his or her property. Unfortunately, most rental property owners have trouble screening new tenants carefully. This can happen either due to the urgency of filling the vacant property or lack of screening skills. Consequently, the tenant may end up being problematic much to the dismay of the landlord. Property managers, however, have a well-developed screening criteria that is equally applied to all prospective tenants. The screening criteria can easily pick out the red flags and weed out the potentially problematic tenants, leaving you with quality clients. In addition, in the rare case that there is a disgruntled tenant they will have the pleasure of dealing with their issues.
4) Avoid Legal Problems
A troublesome tenant can easily get a landlord into serious legal and financial problems. For instance, the tenant could sue for lease termination, eviction or seek compensation for injuries resulting from the landlord’s negligence. Professional property managers are conversant with various Seattle rental property codes and regulations such as the HBMC (Housing and Building Maintenance Code) and the RRIO (Rental Registration and Inspection Ordinance). They will offer advice on the best course of action concerning tenant screening, evictions, lease terminations, security deposit handling, rent collection as well as property safety and hygiene. Their up-to-date knowledge will keep you from facing legal suits or paying hefty fines.
5) Improved tenant retention
Even high-quality tenants can choose not to extend their lease if they are unhappy with the property. If you want your clients to stay to the full length of the lease and even seek for a contract extension, look for a qualified property management firm. Most property managers have sufficient tenant-retention policies, which guarantees the tenant stays happy and willing to extend the contract beyond the lease period.
6) Improved Accounting and Bookkeeping
A property management company will keep accurate financial records on your behalf. Such records include rental incomes, penalties, as well as expenses for repairs and utility services. Moreover, the firm will help you with your taxation filing, identify your tax deductible areas and also aid in the preparation of the claim doc.
7) Tighter rental collection processes
The success or failure of your rental property investment depends largely on how you handle the rental income. The tenant must comply with the rent payment terms such as making payments in time. At times as a landlord, you can be too lenient in accommodating late payments, which might act to your disadvantage. However, if you contract a property management company, the firm will strictly enforce the rent payment terms, penalize the tenant for late payments or returned checks and even serve the occupant with an eviction notice when needed. They take the stress out of having to chase after your tenants for rent each month.
Overall, a property management company allows you to relax and enjoy passive income from your investment rather than spending your time and effort maintaining your property and keeping your tenants satisfied.