Property management is one of the most lucrative opportunities one can find in today’s world. It offers endless growth potential and the chance to essentially have your own income. However, there are actually two approaches to such an endeavor, and finding the right one for your individual situation is essential to true success. Go it alone or hire a property management company, so do you really need to hire a property management company? Let us delve deeper into the concept.
How Much Time Do You Have?
Possibly one of the biggest questions you should consider when thinking of hiring a property management company is how much time you have to devote to your rental property. If you are like most people, you desire a more hands-off approach to renting apartments and other properties, but there are those that prefer to have a keen hand in every aspect of the business. If your time is limited, a property management company is the ideal solution.
Are You Able to Afford a Property Management Company?
The next question you should ask yourself is if you are able to afford a property management company. These companies charge a commission fee from 5% to 10% on properties. Those numbers might scare you at first, but when you consider all the many benefits they bring to your properties, the costs are relatively low. It is often best to set rental rates with property management costs in mind to avoid any interruption in your income potential.
How Close Do You Live to Your Properties?
Being a landlord can be a challenge and many rental property owners do not even live close to their properties. The advantage of living far away is that you do not have to be there with the tenant at a moment’s notice, but you do need someone available to check on the property regularly and contend with repairs and tenant complaints. You do not want to ever be labeled a slum lord, so a property management company can take a lot of stress out of your everyday life.
Do You Lease Standard Homes of Apartments?
It is vital to remember that property management companies are different depending on the company you choose. Some work in all ranges of rental properties while others choose to devote their attention to specific ones. If you rent homes, you can find it difficult to locate a property management company for these rentals, but for those that lease within an apartment building, companies like Bwalk.com can significantly help you realize more income potential and long-lasting rentals.
Benefits of a Property Management Company
The only real benefit to going it alone in the real estate industry and especially within property management is the lack of that 10% fee from your rental agreements. However, the benefits of using a property management company are remarkable.
Higher Quality Tenants
It is very difficult to find high-quality tenants that simply want to live and not destroy your property. Just trusting someone’s word is just not enough these days. People will say anything to get into the apartment they want and once they are in there, in many ways, you, as a property owner, are powerless to evict except in extreme circumstances. A property management company can properly vet tenants before they sign a lease. Their comprehensive screening processes result in tenants that pay on time, every time, and will generally cause far fewer problems than other tenants. These vetted tenants also tend to stay longer, so there is far less tenant turnover within the building.
Fewer Legal Issues
Legal issues among tenants and landlords are certainly nothing new, but laws today are geared toward the tenant, not the landlord, so often, a landlord is left holding the bag after an unruly tenant skips out on rent or destroys the property. An excellent property management company understands the ins and outs of the leasing business and they are devoted to ensuring each property is up to code and each tenant is properly checked out. The result of their efforts provides the property owner with a far less legal issue to contend with leaving you time to enjoy making money instead of chasing down legal problems.
Property Marketability
You may be an excellent landlord, but if your apartment complex is not properly marketed, it is difficult to find qualified tenants. Property management companies know how to market your building and help you fill in those vacant apartments faster than going it alone.