Many people may wonder why they need to hire property managers in Las Vegas instead of just dealing with the renter themselves. While some landlords can manage their property well by themselves, the truth is that most don’t. Here are a few reasons why.
Why Hire A Property Management Company?
Many people may wonder why they need to hire a property management company instead of just dealing with the renter themselves. While some landlords can manage their property well by themselves, the truth is that most don’t. Here are a few reasons why.
1) Tenant Screening:
Most owners of residential rental property do not have access to tenant screening and credit check software. Tenants know this, especially the bad ones. Bad tenants will try to manipulate an owner to con them into letting them rent the property. This is usually achieved by telling a very convincing sob story along with special set payment terms of rent and deposits. Management companies have heard every story and excuse imaginable. Through our experience, we have learned how to identify the “red flags” of problem tenants, and to avoid them.
2) Lack of Owner Understanding of Rental Law:
Even though individual owners may not know rental law like the back of their hand, they are still held to the same standard of compliance as management companies. In many cases state fines are assessed against owners for non-compliance with law and tenants are awarded monetary damages. In almost every case evictions are done improperly by owners thus delaying the eviction process to months when it could have been much sooner.
3) Property Management Companies have a much lower Eviction Rate
Due to more thorough screening, experience and understanding of landlord law, property management companies have a much lower eviction rate than do owner-managed rental properties. At least 14 out 15 evictions that occur are owner-managed rental properties. Just the simple fact that management companies can more readily avoid evictions justifies paying for their property management service. By avoiding just one eviction, the cost of professional management would more than pay that tenant.
4) Involving an Un-bias 3rd Party:
Owners tend to have a higher amount of emotional involvement with their property than a management company would. This can cloud the judgment of the owner and increase tenant conflict and reduce the overall return on investment. Even thought a management company can charge from 8% – 10% of the monthly rent, they make this up in a more efficient rental property.
5) Frees Up More Time for the Owner:
The most obvious reason to hire a management company is to free up more time. A management company is responsible to handle the collection of rents and take care of the annoying repair phone calls that can come at any time of day. Who knows the problems that could arise if you go on vacation and don’t check your phone when an emergency repair such as a water leak happens at the property? This is rare but does happen.