For many people interested in investing in a St Louis rental property, the challenge is how to manage the tenants and keep the house in good repair. This can be a daunting task especially for first-time rental property owners. They do not worry about such challenges at all; rather they should let someone else to worry on their behalf. This person is the property management company. Other than peace of mind to the owner, property management companies have other functions that they execute on behalf of the property owner.
A property management company, having worked on the ground, possibly for years, is a gold mine in terms of the knowledge he possesses about local conditions especially the current rental rates in the location where the house is standing. He will know the best possible rates for your St Louis property, without overcharging, and the target market.
Collection of Rent
Professional property managers have methods and practices of rent collection. The prompt payment of rent and the remittance of the same on time is a hallmark of good property managers. The benefit of this to the owner of the property is that he will be in a position to plan for his income from the house since it is more or less a regular payment.
Laws and Regulations Governing Property
Property managers, being licensed by local authorities in the housing department have to be conversant with all laws and regulations governing property in the locality, the state and nationally. They also keep up with the changes in the law that affects housing. It might turn out to be a costly affair when a house owner starts letting out his property to tenants without the laws and regulations governing housing being at his fingertips.
Some of the highest costs of rental property ownership are the costs associated with holding a vacant property. This could be due to the owner’s inability to find a tenant fast enough. This problem is solved by property managers who have dedicated marketing staff with local experience and a feel of the housing market in the area and beyond. Property managers have methods of floating the availability of your property to the widest audience hence the occupation of your house as soon as it is ready to be let.
Getting the Right Tenants
A property management company will do the screening of tenants for you with any type of property management in St Louis. They will collect all the information necessary to decide if the prospective tenant fits the house and vice versa. They will also do a background check with the security organs, employers, and past landlords to verify that he is a worthy tenant. As a property owner, you don’t want the kind of tenant who has been expelled from a dozen other properties to be your new problem.
Repairs and Maintenance
With many properties to take care of, property managers will have the contacts of the best people to carry out routine maintenance of the property and any necessary repairs. This will help the owner to have some peace of mind to focus on other things other than being worried about which other tenant has a blocked sink.
The property must be carefully inspected before a tenant occupies the house and hen he leaves. This exercise makes sure that the tenant leaves the property just as he found it. The tenet shoulders the cost of any unwarranted breakages and damage. Having property managers conduct the inspections is wise since they will notice some minor damage that the house owner may have missed.
The property manager will keep proper accounting books saving you the bookkeeping headaches. He will provide regular statements, payout ant costs incurred, and send your end year financial details to your accountant for tax purposes.
Property managers keep between 6% and 10% of rental income as their fees. Considering all the hassles associated with managing the property and its tenants, you will find that it is not a high amount. The fact that they have many properties to manage means that they can spread the costs and keep their fees and commissions low.
For peace of mind and free time to think of adding your property interests, pass the management of your St Louis property to property managers.