Have you recently purchased a rental property?
If so, you'll soon discover that managing your rental units requires a lot of time and energy. After all, property management is complicated, especially when you consider things like keeping up with lease documents, dealing with tenants, property maintenance, and collecting rent from tenants who've fallen behind.
This is why so many many rental property owners choose to hire lease management services to handle the day-to-day operation. Here we take a look at some of the most common questions property owners ask about these types of services. Keep reading to learn more.
What Is a Lease Management Service?
Let's start by discussing the basics of professional lease management. For example, what is it?
Lease management is the day-to-day administration of a property owner's lease portfolio. This entails everything from lease document management to stakeholder coordination.
After all, every lease contract contains certain obligations and specifications that must be fulfilled. Thus someone must be in charge of completing them.
Why Is a Lease Management System Necessary?
Does a rental property owner need a lease management system? The short answer is "Yes".
Keep in mind that it's crucial to keep track of your rental property's performance throughout the month. This enables you to view important information quickly and accurately, in real-time, so that you can make adjustments as necessary.
What's the Difference Between Lease Management and Property Management?
These terms are often used interchangeably, but is there actually a difference?
Lease management is the process of tracking your real estate portfolio, whereas property management involves tasks such as collecting rent from current tenants and dealing with the upkeep and functionality of the property.
What Tasks are Involved In Lease management?
Most of the tasks involved in rental property lease management take place after the management company and the tenant have agreed upon the proposed lease terms.
For example, various departments must approve and sign each contract. These include the procurement, legal, and finance departments. Once signed, it needs to be stored somewhere secure like a secure server or on lease management software.
The lease contract then goes through abstraction to compile the key details, then onboarded into a spreadsheet.
Why Should I Use a Lease Management System?
Most rental property owners are too busy. Others don't have the skills needed to manage their properties. Thus a property management company and lease management system can help make a landlord's life far less stressful.
Common Questions About Lease Management Services
It's no secret that buying rental property is a fantastic investment. Especially when you're wanting to build wealth for retirement. Fortunately, this guide to common questions about lease management services shows how you can generate passive income while letting property management professionals do all the work.
Please contact us today to learn more about how we can simplify the rental property management process.