5 Things Your Property Management Company Does Behind-the-Scenes
When you buy a turnkey rental from MartelTurnkey, you receive a rental property that already has property management in place. We believe that property management is an important component of the passive income experience. Without property management, a rental property owner must handle all of the management of the rental by themselves. This adds significantly to the workload, which is the opposite of passive income. Some turnkey companies try to give the impression that property management is a walk in the park, and you don’t need to hire someone else to do it. If you’ve ever doubted the benefit of having a property management company, consider all the things your property management company does behind the scenes.
1. Evaluates Fair Market Rents
Our turnkey rental properties for sale have already been evaluated for fair market rents. You can view this when you look at the sales page or download financials on our website. But as time goes on and leases are renewed, your property management company will re-evaluate fair market rents. This is to ensure that you are always receiving as much rental income as you reasonably can.
Fair market rent is determined by a range of factors, including location, square footage, number of bedrooms and, most importantly, what area rentals are charging. The process for calculating fair market rent is complex and time-consuming, which is why this particular benefit of property management companies is so valuable.
2. Keeps a Physical Eye on the Property
If you’ve been reading any of our blog posts, you know that the best value for turnkey rentals often exist in cities outside your home state. As such, it would be impossible for you to drive by your property once in a while just to see that it’s being kept in a reasonable state of upkeep. This is something else that your property management (PM) company does for you. They’ll keep an eye on the property, and note anything that might be wrong with the property from the outside, such as:
– The tenant vacated without giving notice
– The fence is falling down, in need of repair
– Property looks generally disheveled from the exterior
If anything is noticed, the property management company can take action sooner rather than later, which protects your investment. Of course, you’ll never hear about these casual drive-bys. It’s all part of the behind-the-scenes service of your PM.
3. Screens Unqualified Tenants
When rental demand is so high, such as it is now, your PM may receive hundreds of applications for your turnkey rental property. Can you imagine how many unqualified tenants they have to filter out, just for one listing? Every application has to be reviewed, background checks performed on “maybes,” and follow up communication done in order to get the tenant in to answer questions or sign the lease. They also have to keep records on tenants they denied in order to validate their decisions. So when you see that your PM “screens tenants,” you should know that there is a lot of time-consuming behind-the-scenes work involved with that. And you don’t have to do any of it!
4. Handles Tenant Calls
You probably already know that your PM manages tenant requests for maintenance through their online portal. But did you also know that they have to handle all tenant calls – including just plain nuisance calls that don’t add up to anything? For instance, tenants call PMs about the strangest things, like:
– I got locked out (because they left their keys at the bar)
– My phone isn’t charging in the wall socket (because their charger is broken)
– There’s a spider in the bathtub (nature finds a way)
– The living room window is rattling and I can’t sleep (because it’s windy outside)
Now, these are probably important issues from the tenants’ perspective (especially about being locked out!). But it’s just to show you that these are the kinds of calls that your PM is taking on your behalf at all hours of the night, while you’re fast asleep in your own cozy home far away. It all happens behind-the-scenes, and you’ll never hear about it, except to know that your PM services include “handling tenant communications.”
5. Cleans In-Between Leases
Do you love cleaning? Do you love cleaning up after other people? How about washing down walls and repainting? These are the things that your PM does behind-the-scenes that you probably don’t think about. Every time a tenant leaves, a major cleaning has to take place. Some tenants are cleaner than others, but there’s always going to be a thorough, time-consuming task ahead. Every mark on the wall has to be erased or painted over. The light fixtures have to be unscrewed and cleaned. Inside cabinetry has to be cleaned. Refrigerators have to be polished to a shiny gleam, all so that new prospective tenants will be impressed enough with your turnkey rental property to apply. So even though you probably know that your PM “readies the property” for new rentals, there’s a lot that goes on with the details that is less obvious.
This is just the tip of the iceberg as far as what your property management company does for you. So please don’t fall for turnkey companies that try to tell you that paying for property management isn’t necessary. If you want a truly passive income experience, you’ll work with MartelTurnkey, where you get true passive income with every turnkey rental property you buy.
“MartelTurnkey has been great to invest with providing excellent cash flow in the real estate market. I would recommend them to anyone!”
~ Emmanuel, Miami, FL