Are there benefits to using a property management company?

[Heath Sizick]

I understand that some of you have had awful experiences with property managers. A poor choice in management can definitely lead to angst, frustration, & stress. But what if you had a competent & trustworthy property manager? They can add significant value to your investment. That’s why many seasoned investors, including Brandon Turner, Robert Kiyosaki, & many others, emphasize the value of having a professional property management team as part of your investment team.

The results you can expect IF a management company is not only competent & trustworthy, but also a good fit for your goals & properties are:

Higher Quality Tenants

Tenant screening is like a moat around your castle — it’s far easier to keep bad tenants out than to evict them later. A thorough screening process leads to reliable tenants who:

• Pay on time

• Stay longer

• Cause less wear and tear

• Create fewer issues overall

Experienced property managers have reviewed thousands of applications & know how to spot red flags quickly. By letting them handle screening, you protect yourself from scams & discrimination lawsuits — ensuring a smoother, safer rental experience.

Fewer costly & time consuming legal problems

Experienced landlords know that one troublesome tenant can lead to serious legal & financial consequences. A good property manager stays up to date on landlord-tenant laws to protect you from potential lawsuits. State, local, & federal regulations cover areas such as:

• Tenant screening

• Property safety and condition

• Evictions

• Inspections

• Lease addendums

• Lease terminations

• Security deposit handling

• Rent collection

Avoiding just one lawsuit can more than cover the cost of professional management — AND save you significant time, stress, & money.

Shorter vacancy cycles

A property manager can help you perform three critical tasks that directly impact how quickly your vacancies are filled:

• Prepare the property for rent: They recommend & oversee cost-effective improvements to increase rental value & appeal.

• Set the right rent price: Using market data & rental analysis tools, they help you avoid overpricing (which causes longer vacancies) or underpricing (which leaves money on the table).

• Market the property effectively: With access to multiple platforms & advertising tools, property managers create targeted listings & use their sales experience to attract & secure qualified tenants quickly.

Better tenant retention

High tenant turnover can lead to costly & time-consuming processes like cleaning, repairs, & re-marketing. A good property management company uses a proven retention strategy to keep tenants happy & reduce turnover, saving you time & money. You want to maximize occupancy & minimize vacancy!

Tighter rent collection process

How you handle rent collection & late payments can make or break you as a landlord. Timely rent collection is essential for consistent cash flow, & tenants need to understand it’s non-negotiable. A property manager acts as a buffer, handling excuses, chasing late payments, & managing evictions.

Tenants are more likely to respect a property manager because they’re simply doing their job, making enforcement easier. Property managers are also well-versed in eviction laws, preventing costly mistakes & ensuring smooth processes.

Assistance with taxes

A property management company can help you understand which deductions you can claim, as well as organize the necessary forms & documentation to make those claims. Additionally, the property management fees themselves are also tax deductible.

Lower maintenance and repair costs

Good maintenance preserves property value & keeps tenants happy. By hiring a management firm, you gain access to their in-house staff & vetted, licensed contractors at discounted rates. This saves you money & ensures quality work through expert supervision.

Increase the value of the investment

Preventative maintenance involves systems to address issues early, preventing costly problems. This includes regular checkups, documentation, & visits. A management firm also provides advice on upgrades, helping you optimize rent & reduce maintenance costs.

Personal benefits for owners

• Less Stress: Avoid emergencies, late rent, evictions, property damage, scams, unreliable vendors, & paperwork.
• More Freedom: Live & invest anywhere, without needing to be close to your properties. A good management company lets you collect rent without ever visiting.
• More Time: Spend time on more profitable activities, focusing on asset management, not day-to-day property issues. Enjoy more time with family & friends.

A final thought

Above you see a few ways that a good property manager earns their keep. There are some great management companies out there - you just need to find them!