A big decision to be made as a landlord is whether you should hire a property management company. Many landlords manage properties on their own or with the help of an employee, such as an assistance. But sometimes landlords need more help, and that’s when a property management company might make sense.
What Does a Property Management Company Do?
PMC (Property Management Company) deals directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting fees, handling mail traffic, responding to tenant complaints, and even dealing with tenants credit cards disputes. Plus, a good management company brings its know-how and experience to your property, giving you the peace of mind that comes with knowing your investment is in good hands. Finally, a management company is an independent contractor, so you avoid the hassles of being an employer.
When Should You Hire a Property Management Company?
You should consider hiring a property management company if:
You have lots of properties or rental units. The more rental properties you own and the more units they contain, the more you’re likely to benefit from a management company. You will get better marketing tools, visibility and of course revenue.
You don’t live near your rental property. If your rental property is located far from where you live, hiring a property management company can be invaluable in dealing with the many issues that you will not be able to handle from afar.
You’re not interested in hands-on management. Many landlords look forward to the challenge of finding good tenants and the rewards of maintaining a safe and attractive property on their own. But if you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day marketing of your properties, consider hiring help to manage and market your property.
Your time is limited. Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if landlording isn’t your day job. And if you prefer to spend your time growing your business, including searching for new properties, arranging financing for renovations, or changing your business structure, then a management company may be a good way to rely on as they will prepare a 3 year business plan and advise about proper renovations.
You’re suddenly inundated with management tasks. If your business is growing, at some point you may find that you need a substrantial amount of help to manage everything properly. At that point, it might make sense to hire a management company.
The decision to be made here is not if you have to hire a management company (which on every side of view – you will only benefit from it) but to decide if you are ready to make it a profitable long lasting business.