A property management company handles everything related to managing your rental property, so you can focus on growing your investment portfolio. This can include tenant placement, advertising, property tours, screening applicants and drafting custom leases that ensure legal compliance with Fair Housing laws. Property management companies can also handle maintenance requests, deal with problem tenants and negotiate rent increases or renewals with existing tenants. They can even help you file your annual rental tax returns, saving you a significant amount of time and money.
The costs of using a property management company property management company in Chicago can be deferred with a property management agreement that spells out the services you’ll receive and the fees charged for these services. This agreement should include information on how to terminate the contract, typically by providing written notice of at least 30 days.
Depending on the size of your property and the scope of the management agreement, fees may range from 5% to 10% of the gross monthly rent collected. This cost is a tradeoff for high-quality tenants, shortened vacancy periods and decreased maintenance costs.
Finding the Right Property Management Company
The most important consideration when choosing a property management company is that they have experience with the type of properties you own and manage. Many firms and independent contractors claim to be able to manage any rental property, but it’s important to find out how much experience they have with your particular asset type. Ask for references and a description of how they will manage your property.
A good property management company can save you a lot of trouble, from dealing with slow pay renters to handling the most serious violations of your rental leases. They have the expertise to understand local eviction laws and use best practices to quickly deal with problem tenants, preventing them from damaging your rental assets. This can include enforcing the terms of your leases with renters who refuse to pay their monthly rent, threatening legal action for breaking rules such as smoking in non-smoking units and following the proper procedures when dealing with tenants who have committed serious crimes on the property.
One of the most important tasks that a property manager will perform is collecting rent and disbursing payments to landlords. This will often include sending out rent reminders, accepting online payments and processing automatic deductions from tenants’ bank accounts. It’s important for landlords to offer multiple ways for tenants to pay their rent so they are more likely to be able to do so.
Tenants are generally happier when dealing with a property management company than directly with the landlord, as the process is more objective and the experience usually results in better reviews when tenants move out. This is especially true when a property management company has a 24-hour hotline for maintenance issues, and can respond to problems more efficiently.