Peter Katsarelis
Hiring a Property Management Company
If you’re a landlord, you’ve likely experienced the stress of tenant requests and routine maintenance. According to a survey from Porch, 13% of calls from renters to landlords are for changing lightbulbs alone. With 296,256 property management businesses in the US as of 2023, it’s no wonder that less than 50% of all landlords manage their own properties, according to property management industry statistics.
So, what’s the solution to this problem? Consider hiring a rental management company to help you manage the day-to-day issues of property management. Here are some pros and cons to help you make an informed decision.
Pros of Hiring a Rental Management Company
Experience: Property managers have experience with issues like fair housing laws and standard tenant issues, which can be a challenge for individual landlords. Many management companies hire professional property managers with real estate licenses, so this knowledge is a bonus.
Less Wasted Time: Without the pressures of fielding daily tenant needs, property owners can build their real estate portfolios and pursue other interests.
Geographically Untethered: A property manager will keep an eye on things while you travel or move to a new location.
Shorter Vacancy Times: Property managers prioritize screening tenants in a timely manner and handle any conflicts peacefully and quickly, resulting in shorter vacancy times.
Marketing is Covered: A good rental management company will handle all marketing requirements between tenants, including hiring photographers, staging the property, and advertising your place to find the best tenants.
Save Money on Maintenance: A rental management company’s network of contractors and maintenance professionals means better rates and increased profitability for your real estate business.
Handling the Headaches of Rental Management: A property management company will field rental payments, maintenance requests, and any after-hours emergencies, freeing you from the need to be available 24/7.
Cons of Hiring a Rental Management Company
Letting it Go: When a property management company takes over day-to-day operations, there are fewer decisions for you to make, which can be disconcerting for some landlords with a particular emotional investment in their property.
Costs: Hiring a real estate management company comes with a price tag. While fees vary depending on the services provided, the ROI delivered is typically worth it.
Research Time: Finding the right real estate management company can take time, but being stuck with the wrong property manager until your contract runs out can be a costly mistake.
Overall, hiring a rental management company can be an excellent investment for your real estate business. With their experience, marketing expertise, and ability to handle daily rental management headaches, you’ll have more time to focus on growing your portfolio and pursuing other interests. Just make sure to do your research before selecting a property manager to ensure that you’re getting the best value for your investment.