10 Ways a Property Management Company can save you money

No. 5 – Tighter rent collection process

If you let them, some tenants will walk all over you, especially when it comes to paying the rent. Since consistent cash flow depends on collecting the rent on time every month, you need to be firm — late is late, regardless of whether the tenant has broken up with her boyfriend or lost her job.

When you hire a property manager, you put a buffer between yourself and the tenant. You don’t have to listen to the excuses, chase down the rent or, if it becomes necessary, evict the tenant — the property manager takes care of all that. And, because he has been trained to handle difficult tenants, a property manager isn’t going to be susceptible to a hard-luck story. He is simply going to enforce the lease.

The do-it-yourself landlord, on the other hand, usually has a more difficult time sticking to the terms of the lease and tends to be more susceptible to excuses, which could lead to skipped rent payments and a delay in the eviction process. Using a property management company mitigates this potentially disastrous situation.

Property management companies also renew leases in a timely manner, something individual landlords are not as diligent about. Renewing the lease — instead of allowing it to go month-to-month — allows for an adjustment of the rent rate. If you charge less than market value for the property, you aren’t collecting what you should be for rent, and you are losing money.