When it comes to talks about investment, you are likely to hear suggestions on rental properties. The benefits indeed seem attractive, but there’s a lot more to it than just visiting your tenants and collecting rent.
There are several responsibilities you’ll have to fulfill as a landlord, but you might not have enough hands for them. Whether you’re just about to start with your first rental property or you’ve been in the business for a while and want to branch out, a property management company is going to be a great asset to you and your business.
But what exactly does a property management company do? Should you consider hiring them? And if so, how should you do it?
Here’s an overview of who they are, what they do, and how you can get in touch with them.
Defining A Property Management Company
A property management company takes your place in dealing directly with the tenants. That way, you can spend your time on other important matters, such as marketing rentals, counting and collecting rent, handling maintenance and other concerns, and the like. Property management companies also assist you in maintaining the business, which is great for first-timers, allowing you to feel at ease with your investment.
Property Management Company VS Property Manager
Now, you might have heard about property managers along the way. It’s essential to note that most rental property management companies and property managers are two different entities.
Before you hire a property manager, note that it refers to an individual working on all the management responsibilities on their own. They focus on managing tenants, rent collection and bills payment, and maintenance or repair facilitation.
On the other hand, a property management company comes with teams of people, each with a designated task and goal. And so, they tend to have someone available to look into priority issues on different matters, regardless of what it may be. In some cases, a property management company may consist of several property managers with assigned jobs.
Why Should You Consider Property Management Services?
Before you decide to hire a property management company, you have to consider the cost. It’s much cheaper to call on one person to work on a single task than to have a whole team do so. You will have to prepare yourself for the expense of hiring a company instead of only a property manager. But apart from the cost, here are a few more things you should consider to help you decide:
Number of Investment Properties
With owning more than one rental property, the responsibilities you have to meet double along with it. So the more rental properties you have, the greater it becomes. At some point, it can become overwhelming to handle everything. In this case, a property management company will be a life-changing decision.
Demand for Maintenance Requests
Monitoring the tenants and money flow can be much to work on when dealing with several at once, especially when there is high need for repairs and maintenance requests. Eventually, these requests get piled up and are difficult to solve over time. Sometimes, it may even affect property value. Having a property manager will significantly reduce the maintenance and repairs required. A part of their job includes handling these for you, so you don’t have to worry about overlooking them anymore.
Limited Time or Distance Issues with the Investment Property
When you live far from your rental property, it gets harder to attend to concerns with the tenants or even the property itself. All the more when you don’t have enough time on your hands. You can hire a property manager located within the area of the rental property to ensure someone will always be ready to address the problems that come up.
Property management costs are a crucial consideration before hiring a company. Usually, property management companies and individual property managers charge between 8% to 12% of the total monthly rent. The typical property management fee would be around 10%. Keep in mind some companies may come with additional fees on top of this. Be sure hiring a management company goes within your monthly budget without jeopardizing anything.
A Guide on How to Hire A Good Property Management Company
- Find The Right Company
After deciding whether you should hire a property manager, the next step is to find the right people. Evaluating your options is a vital step because your property, investment, and profit will be entrusted to a separate party. Treat this as crucial as looking for a good tenant and take as much time as you need to find the company for you.
- Ask Questions
A part of the evaluation process includes asking questions. List your expectations and conduct a short interview to grasp how the company works. These companies usually have a set of answers already prepared, but don’t hesitate to push further to make sure they can handle the possible issues as they promise.
- Consider Offers and Costs
Once you have your candidates, it is time to consider the expenses and how it matches up with their service offers. A good property management company will provide you with your money’s worth, so carefully look into their services. The rates a property management company typically charges do not equate to their service quality. If you can, ask around and check for reviews to see previous client experiences.
- Get In Touch
When you have decided, you just have to contact the company. Everything else will follow from there, and you can discuss the remaining details before you start working together.
Managing a rental property can turn into a hassle when there’s too much work for you to handle on your own. It leads to overlooking important issues and decreasing the value of your properties. Availing management services is one way to overcome this. When you hire a property manager, you’re getting an extra helping hand with all the landlord work. Also, property management companies typically help starters by providing necessary assistance and guidance to ensure a successful business with your rental property.