Your real estate is an investment, and renting properties is one of the most lucrative ways to get a return on that investment. Renting is not a simple process, however, and a decision you face is whether to manage the rental yourself or hire a property management company.
Many people and companies with rental property in and around Berkeley, California, will turn to a service like Keyrenter Elite. On the surface, such a service may seem like just an additional expense, a convenience, but professional property management can actually improve your bottom line.
Quality Tenant Retention
Perhaps the two greatest challenges any renter in Berkeley or anywhere faces is retention and tenant quality. Low retention is a problem because establishing new tenants is not a free process, and any month without rent is not just a loss of income but a potential expense. Tenant quality is important because low-quality tenants often result in costs not recoverable from the security deposit alone.
Companies that specialize in managing properties are uniquely suited to overcome these challenges. They know California law and have a network that extends throughout the state. They can reach quality tenants through marketing, and vet and process them in a way that makes retention likely.
Efficient Maintenance and Repairs
Maintenance, repair, and appliance replacement costs are among the chief concerns when it comes to increasing margins. Repair costs during a bad month can easily sap profits. Having quality tenants who take pride in their space and respect your property will certainly help keep maintenance and repair costs low, but they can be even lower.
One of the great advantages a company like Keyrenter Elite can provide you is access to local trade networks and the discounts that can come with that. Additionally, effective proactive spending on maintenance can actually lower the overall costs in a significant way. A manager can schedule preventive inspections of the roof, HVAC system, electrical system and so forth.
Managed Rate Increases
A challenge landlords face is knowing when and when not to increase rent. As someone who owns a single rental property, you may not think of yourself as a business operator, but that’s exactly what you are. Ideally, you should base rate increases on a number of economic factors.
A property management firm like Keyrenter Elite has great access to such information. How are employment rates? Are area incomes rising or falling? Has Social Security and other government organizations increased cost-of-living supplements. Perhaps most importantly, how does your rent compare to similar rentals in the area.
Another potential loss of revenue for landlords is the lease, and another important way that a property management company can protect you is by providing an ironclad lease. Many leases provided by people who rent out their own properties are from leases that are lacking. A personalized lease ensures that you’re protected from unnecessary daily expenses and that you’re on firm legal ground should you or the property manager need to go to court in order to recoup damages from a tenant.