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For experienced landlords, managing rental properties can be overwhelming. You need to advertise the property, make sure that it's well-maintained, look for potential tenants, and handle lease agreements. This is why some landlords hire a property management company that can handle these tasks.
But do you really need a property management company? This article will help you decide by exploring what they do and noting the advantages and disadvantages of hiring them.
A property management company is a third-party business that provides several services related to managing real estate properties. Property managers are responsible for handling daily operations for any type of property, from single units to large apartment complexes and subdivisions.
Here are the common responsibilities of a property manager:
If you're investing in rental properties but don't have time to manage them, then consider hiring a property management company. The primary purpose of a property manager is to help you free up your time without worrying about your property.
With their experience in the rental industry, property management companies know how to handle things properly. Most of them are professionals and licensed real estate agents, so they understand fair housing laws, property advertising, and marketing strategies. They also know how to resolve tenant disputes and evictions, which can be challenging for starting landlords.
When you manage your own property, you must live near the area since there might be sudden maintenance issues or tenant concerns. Hiring a property manager allows you to move out of the area anytime since they'll handle everything for you.
One of the main reasons why landlords are hesitant to hire a property management company is that it can be costly. Property managers usually charge a monthly fee to manage your property, but you could also pay more.
Depending on the contract, they can charge you for initial setup, maintenance, tenant placement, and more. So it's important to read the contract carefully before you can commit.
Potential problems may arise if you hire the wrong management company. Your real estate property is your investment, so you should know what's best for it. If you decide to hire a property manager, you must ensure that they can meet your standards.
Read more: 4 Property Management Tips for New Landlords
While hiring a property manager comes at some cost, you can see it as an investment, especially if you have multiple rental units and don't have time to manage them. It's also best to hire a property management company if you live far away from your rental properties.
But don't push yourself if you don't have the budget. Note that a property manager is only worth it if the cost of hiring them is less than the cost of managing the properties yourself.