As rewarding and lucrative as real estate ownership can be, it does come with a laundry list of responsibilities that introduce significant time commitment, general, and never-ending tasks, and even legal vulnerabilities. Property owners who don’t want to manage property themselves can turn to property management companies for a suite of services designed to handle all the aspects of owning residential and commercial investment real estate.
What Services Do Property Management Companies Provide?
Property management companies specialize in real estate management. At MECA, our company is family-run, and we share a dedication to supporting the community we serve with property management services in Charlotte, NC, and surrounding areas.
Our team includes award-winning, licensed brokers and agents who have earned respect for operating with honesty, integrity and a deep knowledge not only of real estate, but of the Charlotte area in particular.
As such, our decades-old company is uniquely positioned to provide all manner of services relating to real estate property management including, but not limited to, listings, showings, inspections, marketing, contracts, evictions, legal proxy services, building maintenance and repair services, and more. Note that not every property management company has real estate licensed personnel, so this is an important distinction.
Core Services Provided By Property Management
Property management companies handle a structured set of services designed to keep rental assets performing consistently, and these would be outlined in a standard property management agreement between the property owner and the property management company. This helps to ensure that expectations on both sides are met.
Services that property management companies provide are vital to the success of the investment. Core services that would be included in this agreement typically include things like rent collection, tenant screening, tenant management, property maintenance, property repairs, lease management, and financial reporting.
Standard property management agreements would also usually outline fee structures in detail, authority limits, maintenance thresholds, and reporting schedules. Property management companies might also offer tiered or à la carte service packages, since there is such a wide range of property ownership needs. This ability to customize services allows property owners to get the services they need, while avoiding paying for services they’d rather handle separately or don’t have a need for.
Tenant Screening And Selection Process
Having quality tenants is integral to the success of any investment rental property, and tenant screening and selection is a core service offered by property management companies such as MECA Realty. The first step is screening. This entails filtering out applicants who have a history of eschewing their responsibility to take care of the property they’re renting, and other issues that would make them an unsuitable tenant. How is that done?
For any candidate MECA is seriously considering, we conduct income verification, a credit check, a background check, and get landlord references.
In the U.S., there are state and federal mandates governing tenant discrimination. During the entirety of our tenant screening and selection process, we follow the letter of the law. We get the best possible tenants for our property owners, while avoiding actions that might be construed as discriminatory. This protects our company, our valued clients, and the community at large. At MECA Realty, we carefully consider responsible and honest applicants who have a sufficient income/rent ratio and who pass our thorough tenant screening process.
Property Marketing And Leasing Services
Vacant units don’t generate income for property owners. Reputable property management companies prioritize high occupancy rates with expert property marketing and leasing services. Ideally, as soon as a tenant gives notice, the marketing team at the property management company springs into action. Professional-level photos of the exterior, interior, and relevant surrounding areas are posted in a range of media outlets, such as online real estate platforms, and local magazines. Note that the marketing should match the desired candidate tenant pool. High-quality tenants are drawn to high-quality marketing.
Marketing copy should include features and amenities, including nearby perks like being near an expressway, hiking trails, children’s play areas, and cafes. Necessary details will also be included, such as required deposit, rental rates, and more.
On the leasing end, new tenants may be encouraged to sign a two-year lease to further reduce vacancies. The lease is drawn up to be customized to the new tenant, with terms that adhere to federal, state, and local laws. When a lease does come up for renewal, good tenants are encouraged to renew well ahead of time. It’s at this point that another market analysis is done, to make sure that rental rates charged are keeping up with the area. Rent increases may be necessary, and these are handled by the property management companies as far as notifying renewing tenants and editing marketing copy and lease terms.
Maintenance, Repairs, And Property Inspections
Property management companies also take care of maintenance, repairs, and property inspections. Tenants submit maintenance requests through an online portal or app, where the issue gets logged, categorized, and prioritized based on urgency. Something like a leaking pipe or malfunctioning furnace is flagged immediately, while smaller cosmetic issues are scheduled for later attention. From there, the company assigns the job to a vetted contractor or in-house technician, depending on the scope of work and cost.
Routine inspections are planned ahead of time, often once or twice a year, sometimes at lease renewal. This is done to get a grip on small problems early; things like moisture damage, appliance wear, or safety concerns that could turn expensive if ignored. Emergency repairs are handled differently, with 24/7 response systems and pre-arranged vendor contacts, so there’s no confusion or delay when something breaks at night or on a weekend.
The foundation of all of this is local vendor coordination and cost control, where property management companies compare bids, monitor workmanship, and keep spending within agreed limits.
Rent Collection, Financial Management, And Reporting
Gone are the days of door knocking to pick up rent in person. Today, property management companies avail of technology to give tenants options to pay rent online by ACH, debit, or credit. Key to this service is ensuring timely rent collection so that it gets deposited straight into the property owner’s account ASAP.
Specialized financial management and reporting services offered at MECA Realty are part of a full suite of accounting services that include accounts payable, accounts receivable, security deposit management, and monthly income and expense statements. As many rental property owners operate as businesses, these services are vital for accounting purposes.
Late payments and delinquencies are handled expeditiously, with notices and warnings given to tenants in a manner that follows regulations.
Legal Compliance, Lease Management, And Eviction Services
Landlord-tenant laws are important to stay updated with, which is another service provided by a good property management company. This includes fair housing laws, safety codes, and local requirements that vary regionally. The goal is to shield property owners from potential legal entanglements.
Property management companies prepare lease contracts with this in mind, making sure terms are clear and legally sound, tracking when leases are ending, and handling renewals.
Unfortunately, tenant evictions are sometimes necessary to protect the property, owner, and other tenants. At times like this, it’s absolutely essential that everything is handled by the book. If a court date is needed, the property management company can attend as the property owner’s proxy, again acting as a shield against less positive rental ownership experiences.
Evaluating And Choosing A Property Management Company
Choosing a property management company is a process that should be carefully thought through. The right company can be a valued partner that will facilitate a passive income situation, where the property owner is free from the day-to-day and fiscal details that are inherent in rental properties. The wrong company can make what is essentially a great way to grow generational wealth into something that seems like more hassle than it’s worth.
When choosing a property management company, look for one with a solid reputation, one with a proven commitment to quality and integrity, one that doesn’t cut corners or overpromise. Specifically, look for a company with experience in the type of property you need help with. The company should also be up to date on the latest technology, provide quality marketing for their management properties, and be able to provide references from other property owners they represent.
Let MECA Realty Be Your Property Management Partner
Property management companies are here to provide needed services to landlords, real estate investors, real estate agents, and anyone who owns residential or commercial property.
In Charlotte and surrounding areas, MECA Realty has established itself as a dependable way to own rental property as passive income, while minimizing the less pleasant entanglements that often beleaguer investment property owners who try to manage everything themselves. We provide a full suite of residential property management services in Charlotte that include everything mentioned here, and a whole lot more. We’re confident that your investment portfolio will prosper with us by your side. Contact us today to learn more!