Rentals are among the most lucrative real estate ventures because of the regular rental income. Even with tough competition in Nashville, rental prices and demand are on an upward trend. The 2023 median rent at $2,204 reflects a year-over-year increase of +$115.
However, managing your rentals for consistent profitability takes time and effort. While a few properties might be easy to operate, an increase in properties in your portfolio means more challenges in management. Before you realize it, it takes much of your time and feels like a full-time job.
Fortunately, rental companies can take the pain by helping you manage your rental properties. While they charge a fee, it is worth it. They take care of everyday operations, from looking for tenants, screening them, collecting rents, maintaining the property, ensuring compliance, and taking care of legal matters.
Here’s how hiring a rental company can relieve you from the exhaustion of managing your rentals.
1. Screening and Management of Tenants
One of the biggest challenges landlords face is dealing with bad tenants. Screening tenants before letting them in is a reliable way to find good tenants that take care of your property, pay rent on time and stay longer.
However, tenant screening isn’t an easy task. As such, you need an expert that won’t leave out anything crucial in the screening process. Fortunately, there are reliable rental companies in Nashville, TN, that can help you with that. And they won’t just help you with the screening; they use effective marketing techniques to find potential tenants faster.
Property managers perform credit checks and assess tenants’ employment status and income, criminal records, and eviction history. This way, they end up with good tenants for a higher tenant retention rate. This translates to fewer marketing costs, repairing property for leasing, etc.
2. Property Maintenance
If you can’t handle the late-night calls from tenants due to maintenance problems, working with a rental company might be a good solution. Maintenance and repairs are every landlord’s headache. Apart from being costly, they must be done quickly to minimize damage to the property and maintain a good reputation.
No matter how handy you are as a property owner, dealing with many maintenance issues is challenging. As you increase your rental property portfolio, the more issues you deal with. While outsourcing maintenance and repair might seem a good strategy, you still need to oversee it, which takes more time.
Rental companies have connections to reliable contractors that can take care of everything from gas leaks to electrical and plumbing issues. This ensures that everything is done on time and professionally. Besides, they undertake regular inspections on the property to prevent such issues in the future.
Property managers also have a team of customer care who provides 24/7 support to their clients. Efficient communication means any issues arising can be addressed on time which nurtures a good relationship between you and your tenants.
3. Proper Prices on Your Rentals
Charging too little reduces your profitability while charging higher than the average Nashville prices will scare off potential tenants. To properly price your rentals, you need to do market research. But, market research alone is not enough; you need advice from an expert.
Property management companies have local data, which gives them useful insights on the best pricing for your property. Besides, they have access to resources that allow them to do property valuation and strike a balance between profitability and vacancy rate.
4. Compliance with Authorities
Nashville has stringent laws and regulations that landlords need to comply with. Besides the local laws, there are state and federal laws that you must adhere to avoid hefty fines and legal issues.
For instance, you need to get the right licenses and follow the housing codes. Additionally, you need to be aware of your rights as a landlord and those of your tenants, especially as it pertains to security deposits and evictions.
Without proper familiarity with the legal landscape, you might find yourself on the wrong side of the law. A rental company works with lawyers who understand the local laws allowing you to remain compliant at all times. Before renting out your property, they ensure it meets all the building safety requirements, like fire, gas, and electricity.
5. Accounting and Bookkeeping
Property owners have to handle various accounting tasks, from receiving rent to paying expenses. With money flowing in regularly, it can be hard to keep up with all the bookkeeping processes; this is especially true if you lack a background in accounting.
You need accurate financial records to make important decisions on growing your business. For instance, it helps you secure loans from financial institutions and prepare your taxes. On the contrary, bad bookkeeping could mean missing payments from tenants, delayed clearing of expenses, tax evasion, and affecting your access to financing.
Since one of the key responsibilities of rental companies is taking care of your accounting, they can make your work easier. With accounting experts and software they can accurately track your financial data and give you detailed reports. This ensures that all the money flowing in and out of the business can be accounted for to the last coin.
As a property owner, you need to be prepared to handle the property management challenges that come along the way. Only by committing enough time and resources will you be able to make the venture successful.
Unfortunately, most landlords don’t have the time, skills, and resources to run a profitable rental business. To get it right, it’s a smart move to hire a rental company. They have access to experts and property management tools and know how to deal with tenants.
Working with a rental company is the surest way to build your brand reputation and expand your rental business. However, pick one who understands the local market and has the skills and resources to run your business.
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