What a property management company is and why you should be using one for your ADU
They say the most stressful life events are ordered as such:
Anyone who has ever attempted to buy and move into a home can confirm. In fact property acquisition, building, and leasing are very time consuming, tricky tasks, all of which come with a whole lot of fine print and red tape. And throw managing the day-to-day operations into the mix? It can get a little tricky. That’s where a property management company comes in. They handle all the logistics, reducing the time and stress you have to put into renting out your ADU and keeping you safe from fines or financing missteps. Here are the big reasons you should consider hiring a property management firm to manage your ADU:
Bringing in a property management company to handle your ADU rental is the first step in running a tight, tip-top ship. Their professional expertise will protect you from lawsuits, fines, property damages, bad tenants, inconsistent income, and all the other hazards that come with property rental, which can range from annoying to outright devastating.
Tenant screens go a good bit beyond the basic background check (which your property management company can also take care of). Consider the qualities you want in a tenant-- someone that will pay their rent on time, everytime; someone who will rent long term; someone who won’t damage the property; and someone who, all in all, will cause less headaches for you in the long run. Avoid scams, law-suits and all-around bad tenants who make the process of renting more difficult.
Although on site, the rent collection process can turn sour fairly quick but hiring a property management company can help curtail this process. The bottom line of it is, income from rental properties needs to be ongoing and consistent, which often necessitates a hands-on approach. Bringing in a property management company allows you to step back, and allow them to tackle collection, fees, and evictions.
A property management company can oversee and handle the maintenance of your ADU, taking care of any repair issues that have the potential to grow into large issues. Property degradation is a huge problem for their owners, and the best way to get ahead of it is to identify the issues before they get out of hand. This means routine inspection done frequently, and something called preventive maintenance, which is basically intercepting the more insidious issues, such as mold or pest issues, before they start. A property manager might even be able to swing significant discounts on repairs, depending on who you go to.
Conclusion: For a minimal 10% of monthly income in most cases you can take all the hassle out of renting your backyard ADU. For property options please visit our ADU directory for great ADU Management companies in your local area.