There are a lot of reasons why a landlord should consider hiring a property management company, but it might not be for everyone. You may find it easier to manage the property on your own. You should weigh your options and decide if a property management company can benefit you.
Pros:
- Makes it easy to handle multiple units
- Enables you to live away from your rental property
- Makes someone else the “bad guy” when hunting for rent or during an eviction
- Provides services such as basic maintenance and processing rent payments
Cons:
- Can be costly
- Unnecessary if you enjoy doing the hands-on management of your property
Why Should I Hire a Property Management Company?
You have a lot of properties
If you own a lot of rental properties, it makes sense to let a property management company handle them for you. It can be difficult to keep up on every tenant’s needs, make sure all rent is paid on time, and handle problem tenants on your own.
You live away from your properties
Especially if you own properties that you don’t live near, it can be a great idea to hire a property management company. As a landlord, you have certain responsibilities that may be difficult to meet if you don’t live near a rental unit. A 3 am call for a broken pipe can be a whole lot more expensive if you can’t just run down and shut off the main until morning, and it becomes a huge undertaking to show a vacant property.
Let someone else collect rent and deal with delinquency
No one likes to deal with late rent or an eviction. Renting a property is a great way to earn income, but only if your tenants pay on time. When that doesn’t happen in can at best be awkward to nag for late rent or worse lead to a costly and difficult eviction process. It is often easier to allow the right property management company handlethe collections. If it comes to an eviction, a property management company has the experience to handle this sticky situation quickly and legally.
Handles repairs and maintenance
Unless you find it fun and challenging to fix any problem that may arise with your property, you will either have to hire a handyman or keep a building manager on the payroll to handle these types of issues. In addition, some repair and maintenance are required between tenants. A property management has their own maintenance staff to handle these situations. It is much easier than digging through the yellow pages.
As you can see, there are quite a few advantages to working with a property management company. If you find yourself in any of these scenarios and don’t find the cost to be prohibitive it may make sense for you.