Many property owners are hesitant to work with a property management company thinking that they can easily handle all of the maintenance tasks and collections on their own. They think it is only a couple of hours out of their life, until things start to break and tenants stop paying the rent. If you want to grow your portfolio of properties then at some point you are going to need some help. Should you hire a property management company? Yes, as a matter of fact you should. Let’s look at why.
Dealing with Tenants
This is the biggest reason to hire a property management company and that is to deal with tenants so you don’t have to. Screening tenants, taking rental applications, or showing apartments none of that would be your responsibility anymore. Even having someone to screen tenants for you makes a property management company worth the cost. They would also be responsible for collecting rents and enforcing the terms of the lease, leaving you free to run your business.
Pricing Your Rentals
If you don’t have a background in real estate and owning property is an investment strategy for you then you probably have no idea how to price them or what market rent is. If you price too high then you will be left with a bunch of vacant units, price the units too low and you lose money. Both situations are bad for you. A property management company keeps a very close eye on the local markets and can help you price your units correctly. You can still attract good tenants while turning a profit.
Do you really want to handle 3am phone calls because a toilet won’t flush, that is part and parcel of being a landlord. Not to mention the cleaning and painting of units every time a tenant moves out. None of that is fun nor is it a good use of your time. A property management company will handle all of that for you along with getting the right contractors in for the job. The more units you buy the more maintenance headaches you will have to deal with, let someone else deal with that.
There will come a point where hiring a property management company just makes sense and you should do it sooner rather than later. Yes, they will cost money but your time is valuable and it could be better spent looking for your next deal rather than dealing with tenant issues constantly. Delegating responsibilities will be the best decision you make as a business owner.