Choosing whether or not to use a property management company is a hard decision. Although many investors would not think to invest in real estate without a property management company, some hope to do it themselves to save money. There is no argument to say that you will not save money if you do not use a property management company. The catch is that the headache and work that come along with managing your investment is huge.
What Is Property Management?
Property management is the practice by which a company will take responsibility for maintaining your residence or investment. Property management companies help to oversee the daily operations of your real estate assets and deal with any questions or concerns the tenants have. If the property is vacant, then the property manager will work to find renters as well. Property managers take care of every aspect of a rental home or building. Whether that is marketing a vacant space, facilitating signing leases, and repairing.What Does A Property Manager Do?
Since you will need to pay a property management company, you probably want to know exactly what a property manager is going to do for you. Typically a property management company will provide the following services:- Rent collection
- Handle maintenance requests and fulfill them
- Dealing with defaulting tenants that are one or more months behind in rent
- Market a subject property to avoid vacancies
- Keep detailed records of everything happening at the property
Benefits Of Having A Property Management Company
The most important benefit of hiring property management is that you will save time. When this occurs, you will not be forced to manage the property on your own. Instead, you can take on other responsibilities. This may allow you to continue to acquire other properties and make more money in the process. Other benefits include:- Avoiding liability: Using a third-party property management firm means that you will not need to worry about opportunistic tenants making false accusations. Property management companies know how to handle false claims against rent collection tactics, illegal eviction practices, and negligent maintenance.
- Finding quality tenants: Because your property management company will be finding tenants for you, you will be able to have quality tenants. As a result, you won’t need to look for good tenants, instead, you should assume you will have them.
- Fewer vacancies: Property management companies find you tenants, which means you will spend less time with vacancies. Since this is their job, they will be good at finding people to fill vacancies, so you won’t lose on your bottom line.
- Lower maintenance costs: Your property manager will also act like someone who provides maintenance, meaning you will have lower maintenance costs all around.