When you hire a property management company to look after your investment property, you become an employer, a responsibility that can be tax and legal-reliant. In addition to payroll, property management companies also have other responsibilities, such as ensuring rent payments are received on time. These benefits make hiring a property management firm West Chester, PA smart for any business owner. Read on to learn how a property management company can benefit your business.
Increasing the likelihood of receiving rent payments on time
Getting rent payments on time from a property management company is important for many landlords. Receiving rent payments on time is convenient for both parties and makes it easier to budget bills. In addition, if one tenant doesn’t pay their rent, landlords can easily keep track of this and start eviction proceedings against that tenant. A property management firm may use the rent payment to cover property expenses in such a scenario.
Reducing conflict of interest
Reducing conflict of interest for a small business involves knowing what constitutes a conflict and how to avoid it. A conflict can arise when a person has a vested interest in an activity unrelated to his professional work. Such a conflict may be in the form of money, status, or knowledge. Although there is no one right or wrong way to conduct business, a conflict of interest can have legal ramifications. Therefore, it is crucial to know how to deal with it to avoid any accusations of biased decision-making and ensure that you maintain a professional balance.
To reduce conflicts of interest, write a policy outlining what behavior is unacceptable and which is not. Identify the types of conflict of interest that might arise from each category and make it clear to employees that such behavior is unacceptable. The policy should be enforceable regardless of the small violations but should be consistent enough to prevent conflicts of interest. Whether a property management firm is in the business of property management, it should have the policy to reduce conflicts of interest and make it work for both parties.
Earning additional fees through “special projects.”
Special projects can be a fantastic way to engage employees and increase your bottom line. However, not all employees are suited for these projects. Highly technical employees may not enjoy leading officewide meetings and creating a recordkeeping system. Employees who are comfortable helping customers may not be the best candidates for a special project.
Special projects offer a great opportunity for employees to learn new skills and apply their existing abilities in a new way. Moreover, these projects are a great way to connect with coworkers and achieve a sense of fulfillment. Most employees report that special projects helped them grow in their career, while twenty percent of workers have more job satisfaction when they work on special projects. Special projects can also help employers build a great culture and boost their bottom line.
Managing properties for a fee
Managing properties for a fee in a business can be lucrative. The fees you charge may include a percentage of the rent, a flat monthly fee, or a combination of both. Before choosing a property management company, you should first determine what they’ll be doing for the money you pay them. For example, if you manage several properties for a single landlord, you’ll likely charge a lower percentage.
A common fee structure for property managers is a percentage of the rent, and you’ll only get paid if you collect the rent. If you decide to manage several properties for a fee, outline the fees in detail. Often, property management companies base their pricing on the size, location, and type of property. If you’re not sure what to charge, contact a property management company and ask for their pricing structure in writing.