Suppose you have a property or properties you want to rent out. In that case, you may consider hiring a property manager. Realistically speaking, there are good reasons to do so, like when you have added more properties to your portfolio or moved out of town or state. Add to it the complexities of the legal and financial aspects of self-managing your rentals; you might be up for an endless supply of headaches.
Why and when should a property manager be hired?
The concern of whether or not hiring a property manager is valid. There are contractual obligations, and it is not entirely cheap. The answer depends on your financial objectives and knowledge. Your time and lifestyle also affect your ability to manage your rental property. Some pros and cons of hiring property managers are listed below, so keep reading.
The Advantages
If you dislike being hands-on or micromanaging all issues, read all the benefits listed below. If you feel these benefits can serve you well, then it is time to get property managers to assist you.
Expertise
Property managers know a location’s reasonable rental rates and housing laws. It definitely will be much easier to avoid problems like eviction and possible lawsuits. They likewise know where and how to advertise a property and can do comprehensive screening for possible tenants.
If you need help, do a quick search online. You may come across sites like the Action Properties website that can show you what all these management companies can offer.
Maintenance Solutions
Management companies usually have dedicated phone lines that tenants can call for quick responses. These companies preferred vendors that could take maintenance jobs anytime. This saves you from the hassle of trying to find contractors.
Low Turnover
Property managers know how to increase the tenancy duration, maximizing your earnings. Since screening is comprehensive, the room for mistakes is low, ensuring good-paying renters are there for the long run. They maintain good communication with new and existing tenants and can keep relationships professional, which is always good for business.
More Freedom
If you are managing properties when you are out of town or state, that will be a significant issue. These companies allow you to be at ease knowing that your properties are being handled well. This is especially very essential to those who own several properties because managing property is a full-time task.
The Disadvantages
One can expect a couple of cons, which are basically predictable when a third party is involved.
- You will no longer be involved in many aspects if you are a hands-on person. Property management companies already have a system and standards that address every rental aspect. Self-management might be much better if you want to be involved in all details.
- Property management is a paid service. There will be rental property management fees to cover marketing, maintenance, and such. If you feel that you don’t wish to spend on these, and want to spend more time managing to save some money, then the service is not for you.
- Most of the time, property management companies would prefer you not to have contact with tenants. This can help prevent miscommunication and misunderstandings or affect professionalism between the parties. If you can not agree with this, then do not get the service.