The Pros and Cons of Hiring A Property Management Company
For anyone who owns property (and is renting it), one of the critical questions is whether you should or should not hire a property management company to help you handle your property-related ongoing issues and technicalities better.
You are new to property ownership and need guidance or don’t have the time to bother yourself with minor and more significant property-related issues. Go through the list of pros and cons below to help you figure out whether hiring a property management company is the best thing for you:
A property manager can take full control of the legal affairs relating your property affairs as they are up-to-date on the legal requirements and responsibilities of both the landlord and the tenants. You can expect a property manager to handle:
• Potential violations or code conducts
• Everything else concerning your property
Hiring a reputable property management company means getting a manager that’ll have all the necessary, quality vendor connections and save you the trouble of finding a solid vendor yourself. Usually, the company has built a reputation with vendors they want to keep. As a property owner working with that property management company, you may be in for some discounts, affordable payments, and other benefits.
One of the most challenging aspects of renting a property is staying on top of everything tenant-related, from tenants’ regular payments to their own comfort and satisfaction with your property and treatment. A property manager will pretty much save you the headache of dealing with tenants by handling everything from getting their references to creating their agreements and screening potential tenants - quickly and efficiently.
The rental market is very fluid which sometimes makes rental prices fluctuate from one month to the next. If so agreed with a property owner, a property manager will assess the current market and make sure they find the best (and achievable!) rental price for your property while at the same time making it profitable. Once the amount is arranged, the property manager will make sure your tenants always pay the rent on time. Furthermore, if it happens that a tenant needs to be taken to court for financial reasons or eviction, a property manager will handle that, too.
Reduced Stress, More Time
One of the main reasons property owners hire property management companies is to reduce the everyday stress of property ownership allowing you to invest the time saved for other things. When you hire a dependable company, you can rest assured that everything will be handled honestly and with your interest in mind.
Unsurprisingly, hiring a property manager doesn’t come free or cheap; meaning, having one handle your property affairs will put a dent in your profit margins. While each property management company differs in price, the usual fare they’ll charge the landlord is the first month’s rent; every next month is often an 8 to 10% cut of the rental income. While it’s understandable you want to boost revenue from your rental property immediately; maybe you should consider the long-term benefits of this arrangement.
Loss of Control
The trickiest part of hiring a property management company is that you are, technically, “giving” your property to someone else to manage, meaning – you are giving them full power over what’s yours. Still, the right side of this arrangement is that you can always negotiate the amount of power you are willing to yield to them.
For the reasons laid out above, it’s fairly evident that hiring a property manager is a pretty great thing – that is if you are comfortable with trusting a company with your ownership. For more information, you may reach us at info@LLCPM.com