San Jose, San Francisco, and San Diego are among the most expensive cities in California to rent a property. However, they also have some of the highest rents in the country. For this reason, many people choose cities like Santa Cruz, CA, instead.
This has caused an increase in demand for rental properties in the area so landlords can capitalize on the people who moved to the city. There are certain steps you'll need to take to protect your investment property as an owner, and hiring a property management company is one of the most important. Let's explore the key information you should consider when moving forward.
Effective Marketing
When you hire a property manager, you'll have access to powerful marketing tools that can help get your property in front of the right audience. Situations like these can often dictate whether you're able to avoid vacancies.
Even a single month of vacancy can cause significant financial distress, so it's imperative to work with the right professional. For instance, let's assume you own five properties that have an average mortgage of $2,000. If all five are vacant for one month, that's $10,000 you'll need to pay out of pocket.
Tenant Screening
Letting the wrong person stay at your property is one of the worst scenarios you can deal with as a landlord. This can increase the likelihood of property damage, missed rent payments, and even jeopardize your community.
For example, let's assume you had a lax tenant screening policy and didn't check someone's criminal history before renting to them. Months after they move in, you discover they're a convicted felon and are prone to violent outbursts. Working with a property management company goes a long way toward avoiding situations like these.
Rent Collection
There's no shortage of opportunities when you outsource tasks to a property manager, but rent collection is one of the most notable. Not only can rent collection be unpleasant and inconvenient, but many landlords don't know how to compel their tenants to pay on time if issues arise.
Professional Insight
There will undoubtedly be scenarios where you need professional guidance. Your property manager can offer insight into the best course of action to take.
The more experienced they are, the better they'll be able to help you avoid common pitfalls. This is especially true for financial issues that manifest.
Always Protect Your Investment Property
The information in this guide will help ensure you understand how to protect your investment property by working with a property management company. From here, you'll have no trouble reaching your goals and avoiding issues you may have otherwise encountered. Just be sure to research the property manager you choose.
PMI Santa Cruz offers premier real estate asset management services. We leverage state-of-the-art technology to manage both residential and commercial properties.
It's our goal to maximize your asset value over time and help you set the maximum rent possible each month. You can learn more about what we can do when you schedule a free rental analysis today.
