In part 1 of this series, Should You Pick the Cheapest Property Management Company?, we talked about using a good property management company to help you get and keep good tenants. In this second part, we discuss the second reason why using the best, not the cheapest, property management company will save you in the long run.
Part 1 started touching on some issues that many landlords just aren’t up to date on: legal ones. Do you know what the Fair Housing Act says? Or the state version where your property is located? If you don’t you should at least find out the basics. The problem is that the laws are complicated and running afoul of them could cost you hundreds of thousands of dollars. But there are other legal issues too. Do you really want to have to keep an attorney on retainer? Real estate attorneys don’t bill like accident attorneys do… you pay no matter what. Hourly billings, win or lose, you pay that bill.
So, what if something happens at your property? What if there is an accident? What if there is a dispute over rents due or repairs that need to be made? Do you really want to pay upwards of a few hundred dollars an hour to resolve it? With a good property management company to manage your property, the chance of small disputes becoming court cases lowers drastically.
What about your tax and bookkeeping for the property? Do you know all the ins and outs of tax law for rental properties? Probably not. Property managers do, and will keep your books up to date and in line with IRS regulations.
BUT, be careful who you choose to manage your property. The cheapest guys may cost you in the long run. Be sure that the property management company stays up to date on training, changes in law and taxes and has great customer service. Your tenants and your bank account will thank you.
We run a GREAT Denver and Fort Collins based property management company! Give us a call today to find out more…303-452-5853