FAQs About Property Management Companies

Jun 9, 2023 • 3 min read

FAQs About Property Management Companies

If you're in the rental business, you've likely heard of property management companies, but you may need to be convinced they are the right option. If you want to focus less on managing tenant concerns and more time on growing your business, a property management company may be the right choice. You likely have many burning questions about this decision if you are still on the fence. Read on to have some of your most frequently asked questions answered to determine if property management is proper for you!

What is a Property Management Company?

A property management company is a third-party service provider specializing in rental properties' day-to-day operations. These companies provide various services to landlords and tenants, including tenant screening, rent collection, maintenance and repair services, lease enforcement, evictions, and more. By hiring a property management company to handle these tasks, landlords can free up their time to focus on growing their rental business or spend more time with those they love.

Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.

What Are the Benefits of Hiring a Property Management Company?

There are many compelling benefits to hiring a property management company. Consider them further below:

Professional expertise: When you hire a property management company, you get access to experienced professionals who are current on the latest rental laws and regulations. They will know how to handle difficult tenants and any legal issues that may arise. They also have a large pool of resources to handle repairs and other necessary maintenance, so tenant concerns are always promptly addressed.
They handle the dirty work: No one wants to be the bad guy, but sooner or later, there will likely be a problem with a tenant. With a property management company at the helm, you won't have to handle difficult situations like evictions, late rent payments, or tenant disputes.
Reduced stress: As a landlord, you know how stressful handling all the daily tasks associated with rental properties can be. When you hire a property management company, they will take over the day-to-day tasks so you can focus on growing your business or enjoy more free time.
Increased occupancy rates: Property management companies are experts in finding qualified tenants in a hurry. The professionals know how to market and advertise in a way that attracts qualified tenants, so vacancies are filled more quickly.
Better retention rates: Property managers are pros at keeping tenants happy so they remain in your properties longer. This helps reduce costs associated with vacancies and frequent turnover.
Qualified tenants: Property management companies are also excellent at screening potential tenants. They run appropriate background checks and thoroughly screen all potential tenants to identify those who will pay their rent on time and take good care of your property. This can be an excellent advantage for landlords as it prevents costly tenant problems.

With so many great benefits, property management is often the right choice for rental owners.

Are There Any Drawbacks to Hiring a Property Management Company?

Although there are many benefits to hiring a property management company, it is also essential to be aware of some potential drawbacks. Some of these include:

Professional expertise: When you hire a property management company, you get access to experienced professionals current on the latest rental laws and regulations. They will know how to handle difficult tenants and any legal issues that may arise. They also have a large pool of resources to handle repairs and other necessary maintenance, so tenant concerns are always promptly addressed.
They handle the dirty work: No one wants to be the bad guy, but sooner or later, there will likely be a problem with a tenant. With a property management company at the helm, you won't have to handle difficult situations like evictions, late rent payments, or tenant disputes.
Reduced stress: As a landlord, you know how stressful handling all the daily tasks associated with rental properties can be. When you hire a property management company, they will take over the day-to-day tasks so you can focus on growing your business or enjoy more free time.
Increased occupancy rates: Property management companies are experts in finding qualified tenants in a hurry. The professionals know how to market and advertise in a way that attracts qualified tenants, so vacancies are filled more quickly.
Better retention rates: Property managers are pros at keeping tenants happy so they remain in your properties longer. This helps reduce costs associated with vacancies and frequent turnover.
Qualified tenants: Property management companies are also excellent at screening potential tenants. They run appropriate background checks and thoroughly screen all potential tenants to identify those who will pay their rent on time and take good care of your property. This can be an excellent advantage for landlords as it prevents costly tenant problems.

With so many great benefits, property management is often the right choice for rental owners.

What Services Do Property Management Companies Offer?

The services offered by property management companies can vary greatly depending on their expertise. However, most will provide the following services:

• Tenant screening, including background checks and credit checks

• Rent collection

• Maintenance and repairs

• Financial Reporting

• Managing evictions

• Leasing services

• Property inspections and legal compliance

• Tenant communication, including responding to inquiries and complaints.

• And much more!

What Should I Look for in a Property Management Company?

When hiring a property management company, it is essential to research and find the right fit for you. Here are some things to consider when researching potential companies:

Experience: Hire a company with experience managing rental properties in your area. This will ensure they know the local laws, regulations, and rental market.
Professionalism: A good property management company should have a professional and knowledgeable staff that can provide you with reliable service. They should also be experienced in dealing with tenant and landlord issues.
Communication: Ensure the company has a clear and consistent communication policy with tenants and landlords. You should be able to contact them quickly, and they should respond to your requests.
Cost: Companies will charge different fees for their services, so ensure you understand what you will pay upfront.
Quality of service: A good property management company will go above and beyond to ensure that your rental properties are well maintained, your tenants are happy, and your business is running smoothly.
Reputation: Researching the company's reputation by reading online reviews or asking for references is essential. This will help you understand their work ethic and customer service.
Technology: Look for a property management company that uses the latest technology to make managing your properties more accessible and efficient. This can include tenant portals, automated rent payments, and up-to-date construction accounting software.

Ultimately, a property management company can make or break you, making it imperative that you research before handing over the reins to your rental properties.

Is Property Management Right for Me?

The bottom line is property management is an excellent option for many landlords who need more time or resources to manage their rental properties themselves. However, there is only one right choice for some. After having your questions answered and fully considering both the pros and cons, only you can decide if property management makes sense for your unique rental business. However, should you choose property management, you will surely enjoy the benefits of a more hands-free rental ownership experience! Is property management proper for you?

WRITTEN BY

Brian Lee Burke

AUTHOR, E-PRO®, REALTOR® BROKER

Brian Lee Burke is the founder and team leader of Kenna Real Estate Group, a real estate team at Keller Williams DTC. A licensed REALTOR® since 2002, Brian helps Colorado buyers and sellers navigate residential real estate, new construction, pricing, and negotiation. He is also the author of The Real Estate Playbook and Mastering Real Estate: Your Guide to Becoming a Top Agent.

View Brian Lee Burke’s full profile.