Hiring a property management service is one of the smartest decisions you can make as a rental property owner. Although a good number of landlords are successfully self-managing their properties, a property manager will come in handy if you have multiple properties or don't have enough time to focus on your landlord duties.
More importantly, a property management company will shield you and your investment from the many risks that come with owning a rental property. But what are these risks?
Keep reading to find out!
Rental Evictions
Eviction, just like foreclosure or car repossession, is an emotionally damaging experience no one should go through. Unfortunately, when you're a landlord, sometimes you have no choice but to evict a tenant. If you're a tenant who's in rent arrears or is causing unwarranted damage to your property, they have to leave.
However, evicting a tenant is a lengthy process that must follow Arizona's eviction laws. This can set you back as a landlord as it means you won't be earning any rental income until you can replace them with a new tenant.
A property management firm can effectively mitigate this risk. They know how to screen renters, which helps make sure your property is getting high-quality tenants who are not likely to be evicted.
Compliance Risk
Landlords in Phoenix, AZ, have various legal duties and responsibilities. For example, you must make repairs and do routine maintenance on the property to make it fit for tenant habitation. You must ensure the property has a supply of essential services, including gas, hot water, heat, and air conditioning.
These responsibilities give rise to compliance risk. If you're not aware of all your legal responsibilities, you can easily ignore or neglect a certain function, exposing yourself to various liability issues.
Experienced property managers know the law inside out. They won't make any mistakes that would put your compliance under scrutiny. As a result, you'll have greater peace of mind, knowing no lawsuits are going to come your way because of negligence and legal violations.
Property Value
When you buy a rental property, you're not just looking to make money from the rental income. You also want the property's value to appreciate so you can make a tidy profit should you decide to sell it later on.
However, a rental property doesn't just gain value out of nowhere. Several factors affect its value, including maintenance and repairs.
If you don't look after your property, you will not only be running into compliance issues but also hurting its value, and consequently, your investment portfolio.
A property management company will find the best maintenance contractors to perform property inspections and complete any needed repair and maintenance work. This will preserve the property's value, protecting you from the adverse effects of depreciation.
A Property Management Service Is a Landlord's Key Ally
In the rental property business, a property management company is your friend. The team will work to minimize your risks while maximizing your income.
Landlords in Phoenix, LHM Realty is here to handle all your property management needs. With our vast industry experience and wide networks, you can bank on us to provide services that work.
Get in touch with us today.
