A rental management company can be a helpful resource for both landlords and tenants. It will be necessary to communicate with the company about the payment schedule and any other details. Many rental management companies collect rent electronically through ACH, a network that allows money to be transferred between banks. When choosing a property management company, you’ll want to read the contract carefully to ensure that your interests are being taken care of.
Some rental management companies also charge a management fee, which is deducted from collected rent. The tenant may be required to pay the fees even when the unit is empty. The fee structure of rental management companies may be different depending on the type of property and the service offered. A fee that rewards maintaining a high occupancy rate and encouraging tenant turnover will lead to a higher monthly income.
Rental management companies also handle the legal aspects of renting a property. There are many federal and state laws that landlords must follow. These laws govern many areas of rental management, including tenant screening, lease termination, evictions, and rent collection. It can be difficult to navigate these laws on your own, so a professional rental management service will be able to help you stay out of trouble.
Another reason to hire a rental management company is that it will make landlording easier. This is especially useful if you live far from your rental units. You don’t want to drive to your rental property during rush hour or on a weekend to attend to a tenant’s emergency.
