Whether or not to hire a property management company is an important consideration for any landlord. Though there are many advantages to using a property management company, there are also associated costs to factor in. If you are considering hiring a property management company, think about the following factors before you make your decision.
Amount of Rental Units
If you own several rental properties with multiple units you may have difficulty managing them all on your own. You are likely to benefit greatly from a property management company. However, you may benefit from a property management company even with a small number of units when other factors are taken into account.
Distance from Rental Property
If you live a great distance from your rental property using a property management company may be a very smart move. They can help you deal with issues like repairs, complaints, payment collection and inspections that could be difficult to handle remotely.
If being a landlord is not your day job you may find yourself pressed for time when it comes to dealing with certain aspects of managing rental properties. Issues like repairs, tenant screening and payment collection, for example, can all drain your time. Even if land lording is your primary source of income, you may find that you prefer to spend your time elsewhere. For example, you could search for new properties or manage renovation projects. In these cases, the cost of a property management company would be offset by the value of your time.
In order to keep your properties running efficiently, you may choose to hire a resident manager or other employees. If you do not the responsibilities and hassles of being an employer, using a property management company could make sense for you.
If you have considered the above factors and think a property management company is a good option for you, make sure you look for a quality company with a great reputation in the community. The company you select can make or break your rental business.