A property management company acts as a liaison between the owner of a single-family home, condominium, multi-family building or apartment complex and the renters. The company advertises the rental property, takes inquires from prospective tenants, conducts background and credit checks, selects a qualified applicant to move in, draws up a lease agreement, collects rent payments, sends payments to owners and handles maintenance issues. In addition, the company provides financial statements to the owner(s).
A good property manager Northbrook IL property management company is well-versed in the legal responsibilities of both landlords and tenants. They will comply with housing codes and ensure the property is safe for residents. They will also provide the proper paperwork to tenants upon move-in, including a copy of the lease and important documents relating to tenant rights.
Property managers must have a solid plan to attract and retain tenants. This includes marketing the properties in a variety of ways, such as social media, online advertisements, paid search, and local business events. They also need a team of reliable maintenance professionals to handle repairs and renovations promptly. A property management company can help a landlord reduce turnover by providing 24/7 emergency maintenance support.
When choosing a property management company, a landlord should carefully consider their experience and fees. They should also review the contract before hiring them, paying particular attention to the responsibilities outlined in the agreement. A well-written agreement will prevent misunderstandings and protect the landlord’s investments.
The first step in starting a property management company is to decide what type of business you want to form. Most property management companies are set up as LLCs or S-Corps, which offer more legal protections than sole proprietorships. Once you’ve decided on the type of business, it’s time to start promoting your services.
When it comes to marketing a property management company, referrals are a great way to get the word out. Ask for recommendations from family members, friends and other real estate professionals. Also, check out reviews on Google and Facebook to find out what previous customers have said about a company’s service.
Before a landlord hires a property management company, they should make sure the company is licensed and insured. A license is a requirement to legally manage property in many states. A license demonstrates that a property management company has the necessary training and experience to manage a rental.
Managing a rental property is a lot of work, especially if you own several units. A good property management company can save you time and money by handling all the operational tasks, allowing you to focus on generating income from your rental properties.
In Canada, laws governing landlord and tenant relationships are a provincial responsibility, but a property management company can handle many of the operations for a monthly fee. Depending on the company and contract, they can take care of the following: