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You’ve probably heard about property owners who earn rental income without having to lift a finger, or those who seek help from a third-party to improve efficiency. Hiring a property manager is a common practice among real estate investors, whether they have multiple rental properties or are too busy to handle the operations of even just one. Before you think about hiring one, you should learn what full-service property management entails.
Key Highlights:
- Full-service property management covers every stage of rental operations, from marketing and tenant screening to rent collection, maintenance, accounting, and even eviction handling, ensuring smooth and profitable management for property owners.
- Professional property managers use expert marketing strategies, detailed background checks, and reliable screening methods to attract and retain quality tenants who comply with lease terms and care for the property.
- Online tenant portals enable fast rent payments and convenient maintenance requests, while established vendor networks ensure affordable, timely, and reliable property repairs and upkeep.
- Property managers handle all financial responsibilities, including rent processing, vendor payments, owner statements, and ACH transfers, helping landlords maintain transparency and meet compliance requirements.
- When hiring, landlords should verify licenses, review company portfolios, check fee structures, assess technology use, and ensure the chosen manager aligns with their specific operational needs and business goals.
Marketing
Before your rental business starts becoming profitable, you need to find tenants first, and that’s only achievable if your rental listings are visible to potential tenants. This is where marketing becomes relevant, since this aspect of property management gives your rental listings the exposure they need.
You need to execute the right marketing strategies to stand out, especially in a competitive rental market. At best, your property manager should provide access to a dedicated leasing specialist, professional rental market analysis, a professional photographer, and online advertising exposure.
Tenant Screening
Once you find applicants, you can’t simply let them rent your property. This is a good way to invite bad renters into your property, and it must be avoided as much as you can. Through tenant screening, you will find quality tenants who will respect your lease terms and your investment property.
A property management company should screen tenants using at least the basic criteria. These include credit scores, eviction histories, employment verification, previous landlord references, and debt-to-income ratios. A meticulous tenant screening process lets you delve deeper into a tenant’s compatibility with your rental unit.
Rent Collection
Even with thorough tenant screening, you can never guarantee that your renters will pay rent on time, or pay at all. A property manager can handle overdue rent by enforcing lease rules, considering local and state laws, and issuing late notices.
More importantly, you and your tenants can access in-house tenant portals for fast online payments. All parties involved can view transaction histories, as well as payment schedules for rent. The accessibility and convenience of online payment can encourage tenants to pay on time.
Maintenance
The condition of your rental property is crucial to operations running smoothly. A well-maintained home will encourage tenant retention and can reduce potentially higher costs by spotting problematic areas in your property and fixing them immediately.
The tenant portal also allows residents to send maintenance requests online and have access to emergency hotlines 24/7. Well-established property management companies would even have a reliable network of vendors, providing you with fast, reliable, and cheaper services.
Accounting
Accounting can be the most stressful part of property management for some landlords, given that accuracy with numbers is a must. While you can use property management software to streamline the process, you still need to handle several paperwork for legal compliance.
With a property management service, someone else will handle rent collection and processing, payment of vendor bills, payment of monthly bills, owner statements, and direct deposits by ACH processing to your bank account. All you need to do is wait for the money to reach you.
Eviction
If accounting is stressful, then eviction is something that property owners want to avoid altogether. Not only will you have to think about all the landlord-tenant laws that concern evictions, but the entire process can also take weeks or months. That can easily take up a lot of the time you can spend managing your rental business instead.
With a property manager, eviction notices will be served, prosecution will commence, your rental unit will be recovered, and the rent amount due will be recovered. Once all that is finalized, they will automatically market your rental property again to avoid prolonged vacancies.
How To Find The Right Property Management Company
Many property managers will claim to provide these services, but are they the right fit for your business? When choosing someone who will handle every aspect of your rental property, you must be thorough, as it can make or break your business.
- Determine what you need first. Every landlord needs something different. Do you need a comprehensive property management service, or just help with rent collection and maintenance? You shouldn’t have to pay for a full service when you are fully capable of handling others.
- Discover your options. Research the local property management companies you can hire and learn about their reputation. You can do so by reading online reviews or asking fellow landlords which services they use.
- Verify licenses and certifications. Property managers are required to be licensed in Tennessee, so you have to verify whether your property manager has the right credentials, such as certification from the Institute of Real Estate Management (IREM) or a local real estate board accreditation.
- Check their portfolio. A property management company managing several rental businesses can be a good sign, since it means that landlords trust them enough to hire them long-term. However, handling too much at once can mean that your rental business won’t get the attention it deserves.
- Review the fees and contracts. You can request a breakdown of all costs of the fee structure if it’s not shown on their website, and you can determine for yourself whether the cost is fair and appropriate. Check the contract for hidden fees and termination clauses.
- Inquire about the technology they use. While it’s not a necessity, property managers who use tech tools can make operations smoother and more transparent. These can be in the form of online payment methods, digital maintenance request platforms, tenant portals, or owner dashboards.
Property Management Services FAQs
When should I hire property management services?
- While some landlords hire property managers when they start to feel overwhelmed, or have several rental properties to oversee, others do so early on to ensure smooth operations and maximize profitability. If you’re new to the rental industry, a real estate professional by your side can be very beneficial.
How much does professional property management cost?
- Fee structures between companies vary. Some collect flat fees while others charge a monthly percentage of the rent, ranging from 8% to 12%. It can also depend on the level of service provided.
How do property managers handle maintenance requests?
- Most property management companies use tenant portals and a 24/7 maintenance hotline, ensuring swift and efficient responses to tenants. They often have a network of reliable tenants as well, which can mean reduced maintenance costs for you.
Can property managers increase my rental income?
- Absolutely. They possess the needed expertise to optimize your rental listings, analyze markets, set the right rent price, retain tenants, boost your property’s value, and everything else you can expect from rental industry professionals.
Huneycutt Realtors For Your Tennessee Rental Property
If you’re looking for the right property manager for your Clarksville, Tennessee rental, you can include Honeycutt Realtors in your list of reliable property managers. We already have 48 years under our belt, and we aim to use all the knowledge we’ve accumulated to help you.
We have a team of professionals, technologies, and connections that you will have access to, helping your rental business grow and thrive. Don’t take our word for it. You can simply review our current clients' feedback to discover how we will take care of your business.
Be a stress-free landlord today. Contact us, and learn more about our services.