Several new landlords often prefer to manage their rental properties independently, believing that it’ll help them save the costs of hiring a professional manager. They are ready to face the challenges of property management head-on and take care of everything about their property, from marketing and tenant screening to leasing and maintenance, without taking help from anyone. However, in most cases, this attempt to save rental management fees fails and they end up inviting more expenses for themselves.
The biggest myth about Santa Rosa property management is that it is too expensive. If you take into account how much the management company can help you save on repairs, maintenance, and legal fees, hiring a property manager can be the most financially lucrative decision for your Santa Rosa rental.
It is important to know that property managers don’t burden you with management charges. In fact, they can help you save a lot of your money and assist you in grasping unrealized profits.
Here is how a Santa Rosa property manager can help you save your money.
Property Managers Reduce the Operational Costs of Your Santa Rosa Property
Ad hoc maintenance fixes for your rental are like fixing a broken appliance with superglue. It may do the job for the time being, but it is going to cause even more damage to the item in the long run, ultimately increasing the frequency of repairs. Even if you hire a local contractor to resolve your issue, they are likely to charge a heavy penny, especially if you do not know exactly what the problem is. Besides, it is difficult to build a network of trusted contractors, who are fast and responsive.
Conversely, property managers have a huge number of qualified vendors and contractors within reach, which ensures that they can get all the same jobs done for you with greater quality and affordable rates.
They look after overall maintenance like fixing the appliances, the furniture, or repairing any structural damages or landscaping and also ensure that repairs are done as quickly as possible, to avoid greater damage due to deterioration. Property managers facilitate fast and effective maintenance which saves you money in the long term.
Property Managers Help You Charge Appropriate Rent
Setting the right rent price is one of the key steps to running a successful rental business. However, it requires thorough market research, knowledge about the average rent price in the neighborhood, and the existing demand for similar properties in the market. Plus, you also need to take into account the cost of the amenities or appliances in the unit while determining the rent.
Overpricing your rental can drive prospective tenants away, while charging less rent can make you lose out on potential profits. In either case, your finances are going to suffer.
Property management companies prevent you from making such costly mistakes. They use their resources and help you set the accurate rent price that draws quality tenants to your unit while also helping you earn significant profits.
Property Managers Ensure Minimal Rental Vacancies for Your Santa Rosa Home
Rental vacancies are every landlord’s nightmare. Not only do you lose out on rent but you have to pay for maintenance charges on your own. If you need your Santa Rosa rental to be occupied at all times, it must be on the local rental hotlist as soon as there’s a vacancy looming up. You need to advertise it effectively on leasing platforms to find the right target audience.
However, this can be tricky considering the constantly changing marketing trends. Implementing different marketing tactics at an individual level is time-consuming and often expensive. Relying only on word-of-mouth publicity is the reason why many DIY landlords fail to find the right tenants for their Santa Rosa rental.
This changes if you have an experienced property manager by your side. They are capable of leveraging the best marketing tools and platforms, including the most popular local listing websites, to call attention to your rental at your desired price point.
Plus, they also have a great network of existing clients and renters. By the time your place is vacant, they may even have applicants who are looking for a home like yours. They will also do their best to sustain your existing tenants, thus helping you earn a consistent cash flow without having to worry about rental vacancies.
Property Managers Save Your Money by Placing Quality Tenants
Finding the right tenants for your Santa Rosa investment property requires expertise, resources, and money. There are several steps in an effective tenant screening process, from charging the right application fees to creating the final lease documents. Skipping any of these can result in failing to find good tenants, renting out the house to someone who neglects the terms of the lease, does not take care of the unit, or fails to pay rent on time.
If you let a property manager handle the tenant screening process on your behalf, they can place high-quality tenants in your home within a short period of time, which can save you a great deal of money. Experienced companies protect your investment from fraudulent applicants and place trustworthy tenants in your Santa Rosa rental. They conduct a lot of background checks, including but not limited to:
- Credit score of the applicant, to ensure that you don’t rent out to a bankrupt individual who may not pay rent on time
- Past evictions, to make sure that you don’t place tenants who may break the lease and use the house irresponsibly
- Criminal history of the applicant, to ensure the safety of your home, the neighbors, and yourself
They Conduct Regular and Exhaustive Inspections
As crucial as they are to maintain a Santa Rosa rental, regular inspections can be daunting. You have to be organized, follow checklists, and examine every room properly, including checking if all the appliances work, if the furniture is in place, if any of the items are missing, or if there are any wear and tear damages.
Professional property managers have an eye for detail and can conduct through and through inspections that document the tiniest differences in the state of the unit. They check the interior and the exterior of the place, from the paint on the walls to the flooring of the unit, to make sure that the property is ship-shape. They also take care of forgettable activities like changing the HVAC filters, repairing the garbage disposal blades, and replacing the smoke detector batteries.
Their exhaustive routine inspections help maintain the condition of your unit and save you from the burden of heavy-duty repairs and replacements as well as litigation charges if the house is not habitable.
Property Managers Help You Earn a Consistent Cash Flow
Rent collection can be tough and late rental payments can lead to cash flow problems that affect your other investments or mortgages. Property managers can save you from this trouble. They follow a strict rent collection process and do not accept any excuses. They also take care of the required legal processes in case of late rent payments, like sending late rent notices, pay or quit notices, and warning notices whenever necessary. Tenants tend to take rent payments seriously in this professional atmosphere, which gives you a consistent cash flow.
They Ensure Lease Enforcement for Your Santa Rosa Property
Property managers ensure that all the terms of the lease like maintenance responsibilities, timely rent payment, pet policy, and the no-smoking policy are rigorously followed. If the tenants fail to do so, they will take the necessary action like confronting the tenants, warning them, or sending appropriate notices. This saves your Santa Rosa rental from any damages. Also, if you charge any extra fees like pet fees, you will receive the amount in time.
They Recommend Lucrative Upgrades for Your Santa Rosa Property
Investing in over-the-top upgrades that do not actually attract potential tenants can lead to unnecessary financial expenses. Property managers can help you save money by recommending only the must-have amenities as they are aware of the upgrades that yield maximum ROI. This can also enable you to charge more rent for your Santa Rosa unit.
Property Managers Help You Save on Legal Expenses
Failure to abide by the law can result in litigations and cause you to incur high legal expenses. There are certain federal and state laws that you must follow at all times in Santa Rosa, such as:
- Fair Housing Laws
- Implied Warranty of Habitability
- Rent Control Laws
- Security Deposit Laws
- Important landlord disclosures
- Eviction procedures
- Notice for entering the property
California has some of the strictest landlord-tenant laws which requires you to be aware and mindful to avoid being sued by tenants.
Property managers are well-versed in real estate laws and can ensure that you are on the right side of the law at all times. They also maintain extensive documentation related to the house, including but not limited to the signed lease, the application forms, the move-in and move-out checklists, and more, which can act as evidence in the court. Furthermore, should the need for a strong defense arise, they can put you in touch with the best legal counsel and make sure that you win your case.
Property Managers Take Care of Accounting for Your Santa Rosa Property
Clear accounting and bookkeeping are essential to track the health and profits of your investment. The data you get from your accountants becomes the basis for your next financial decisions related to the property and hence, it is important to have clean and comprehensible books.
Property managers document even the smallest expenses and receivables, using the best digital tools, bookkeeping software, accounting software, and online portals to manage your investment. You get a clear idea of your financial statements when you have trusted managers handling your accounts which eliminate the possibility of making erroneous choices.
These are some of the benefits of working with a trusted property management company, like Redwood Residential Property Management. We have been in the residential real estate management business in Santa Rosa for decades and firmly believe in helping every client earn optimum profits on their investment.
For more information on how we can help you save money for your Santa Rosa rental, please contact us at Redwood Residential Property Management.