Although rental properties are a great way to earn passive income, you still have to do quite a bit of work to earn the money if you choose to look after the properties yourself. Hiring a property management company to do the hard work for you is probably the best way to go if you prefer not to deal with the day-to-day issues associated with managing rentals, and here are two reasons why.
Avoid Legal Problems
There are quite a few laws and regulations that dictate how landlords must run their properties to ensure they are providing safe places for tenants to live. If you're not careful, you could inadvertently run afoul of these laws and land in a lot of legal hot water, especially if you participate in state assistance programs such as Section 8. It can take months, if not years, to learn everything you need to know about landlord/tenant law, time that could be better spent on other, more enjoyable things.
Property management companies are generally well versed in local, state, and federal housing laws and can ensure you and your properties are following the rules. Additionally, these companies have a lot of experience in screening tenants. For example, it's common for management companies to conduct criminal background checks, credit and employment checks, and uncover any previous evictions. This can help you avoid getting someone in your property who won't pay or will do extensive damage to the home.
Avoid Unwanted Midnight Calls
The second benefit to using a property management company is these people will usually take over your home's maintenance. They'll make sure appliances are regularly serviced, the grass gets cut, and have the roof looked at on a regular basis, among other things. They will also usually conduct regular inspections on occupied and empty units to ensure things are running okay.
Most of all, though, they're the ones who will take those emergency maintenance calls from tenants who experience severe issues (e.g. flooding) that always seem to happen in the middle of the night. A property management company will organize the repairs, clean up, and handle the tenant's temporary relocation needs, and you'll get to sleep peacefully undisturbed.
A property management company can make being a landlord a lot easier and more enjoyable, and hiring one is a good option whether you own a single investment property or hundreds. For more information about property management, contact a company like Reedy and Company in your area.