What Does a Property Management Company Do?
Management companies deal directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions. Plus, a good management company brings its know-how and experience to your property, giving you the peace of mind that comes with knowing your investment is in good hands. Finally, a management company is an independent contractor, so you avoid the hassles of being an employer.
When Should You Hire a Property Management Company?
Although hiring a property management company has many advantages, you must do your research and make an educated decision. Consider the following factors to determine if hiring a property management company would be a good decision for your business.
You should consider hiring a property management company if:
You have lots of properties or rental units. The more rental properties you own and the more units they contain, the more likely you are to benefit from a professional management company.
You don’t live near your rental property. If your rental property is located too far from where you live, hiring a property management company can be an invaluable service in dealing with the many issues that you will not be prepared to handle from a distance.
You’re not interested in hands-on management. If you don’t want the hassle, day in and day out, time consuming nature of managing your own property and you view your rental property ownership strictly as an investment. Consider hiring help to manage your property.
Your time is limited. Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if landlording isn’t your day job. And if you prefer to spend your time growing your business, including searching for new properties, arranging financing for renovations, or changing your business structure, then a management company is a good way to spend your money.
You’re suddenly inundated with management tasks. If your business or investments are growing, at some point you will need a substantial amount of help to manage everything properly. At that point, it might make sense to hire a Professional Property Manager.
You don’t want to be an employer. If you hire a resident manager or other employees to help with your property, you become an employer. You’ll have to handle payroll and deal with a host of other legal requirements and considerations. But, because a property management company isn’t your employee (it’s an independent contractor), and neither are the people who work for the company, by using one you avoid the hassles of being an employer, plus management services are tax deductible!
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