[fa icon="calendar"] 10.18.2016 / by Hunter Strickland
One question every landlord will face at one point or another is whether or not to hire a leasing agency. A leasing agency will handle all aspects of a lease transaction to ensure that the interests of the building owner are being protected. They handle tasks such as:
- Marketing and advertising the property
- Screening prospects
- Preparing lease paperwork
- Signing qualified tenants
In the beginning, handling these tasks yourself might make sense, but as you expand your portfolio and find yourself managing more and more units, these aspects become more demanding. Here are a few ways hiring a leasing agency can be a huge benefit:
1. Time Savings
Renting out space in your building requires investing a huge amount of time. You have to show the property, answer emails, return phone calls, market the property, etc. To top it all off, not everyone you talk to is looking to rent right now. Some people might simply be browsing. If you add up all the hours you spend trying to lease your property and put a value on it, it will more than likely cover the cost of hiring a leasing agency to handle those same tasks.
2. Less Hassle
Not only do leasing agents save you time, they make the whole process much smoother and less stressful for everyone involved. A good leasing agency will be able to screen tenants, run credit checks, and prepare lease documents in a more efficient manner because it is their specialty; they do it every day. They will also be able to field questions, handle negotiations, and find higher quality tenants.
3. Fewer Legal Problems
Leasing agents are also going to be more up-to-date on current laws and regulations that concern landlord-tenant relationships in your area. This is important because each state and municipality will have different laws that pertain to
- Tenant screening
- Building codes
- Lease addendums
- Rent collection
Hiring a leasing agency to help you navigate these areas can be a huge advantage. Even if they help you avoid a single lawsuit, you will have saved yourself plenty of time and anguish - not to mention money.
4. Short Term Vacancies
Do you know how long it takes to rent a property? Consider that even if your tenant gives you a 30-day notice before vacating, you only have 30 days to find a new tenant to fill the space. Any longer than that and you are missing out on potential revenue.
A good leasing agency will be able to help market your property and screen tenants so that you can fill your vacancy right away. Actually, they might already know someone who is interested without having to go through all that. Just be sure your leasing agent is experienced and knows your market.
Finding the Right Leasing Agency
Not all leasing agents were created equal. Before you hire a leasing agency to help rent your property, be sure to ask lots of questions to see if they are a good fit. How many properties do they work with typically? How do they market properties? What is the screening process? It is important to find someone who is knowledgeable about your specific market, so don’t be shy and make sure you know exactly what you can expect from the relationship.