**This article was originally written on July 18, 2016 but was updated on December 14, 2020.
Anyone who has owned a Long Island rental property for any length of time will know that it can be financially rewarding. Most likely, you have also discovered that it requires a large time commitment. From monthly operation, marketing, showings, and maintenance, you have a lot on your plate as a rental property owner.
For rental property owners that value their time foremost, hiring a reliable, professional property management company has proven to be an essential resource. What does a property management company do for you as a landlord? And how do you know if it’s the right fit for you?
What Does a Property Management Company Do?
Property management companies deal directly with prospective tenants, saving you time marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions. A good management company will have many years of experience in the industry and familiar with the local housing market. Finally, a management company is an independent contractor, so you avoid the hassles of being an employer. In essence, a trustworthy property management company will take all the time-consuming and frustrating details of the trade-off on your plate so you can have more time to do more important things, like growing your portfolio or spending time with family.
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 before picking the one for you. Consider the following factors to determine if hiring a property management company would be a good decision for your business.
Consider Hiring a Property Management Company if:
You don’t live near your rental property.
Living nearby the property you manage allows you to make regular visits for maintenance, inspections, and collections. The further away you live from the rental, the longer travel time and higher frustration level you’ll have. 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. They handle the scheduled visits and middle-of-the-night emergencies, so you don’t have to.
You have lots of properties or rental units.
As your real estate portfolio grows, so do the challenges. Investors with larger portfolios stand to benefit from a professional property manager dramatically. In fact, doing so could you’re your grow your business. Sometimes an investors’ ability to purchase new properties is limited if they’re already maxed out managing their current holdings. Additionally, a dedicated property manager usually has access to investment properties not available to the open market.
You’re not available 24/7/365.
Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if landlord isn’t your only job. Think about it honestly: are you willing to drop your special event, an important meeting, or vacation to fix someone’s overflowing toilet? If not, consider hiring a property management company. Additionally, if you prefer to spend your time growing your business, including searching for new properties, arranging to finance for renovations, or changing your business structure, then a management company is a sure investment.
You’re suddenly overwhelmed with management tasks.
If your business or investments are growing, tasks like filling maintenance requests, collecting rent, pursuing evictions, or simply keeping up with the local landlord-tenant laws can quickly be too much for you to handle on your own. As your portfolio grows, at some point, you will need a substantial amount of help to manage everything properly. It might make sense to hire a professional property manager, especially if you don’t want to hire or manage employees.
You don’t want to be an employer.
Eventually, you’ll need help managing your properties when your business grows. If you hire a resident manager or other employees to help with your property, you become an employer. That means working on payroll and a host of other legal requirements and considerations. But, because a property management company is an independent contractor, you can avoid the hassles of being an employer. Another bonus is that management services are tax-deductible!
Ultimately, whether or not you hire a management company should hinge on whether or not it is a good fit with your lifestyle and makes sense financially. If you decide you could use the experience and resources a professional property manager provides, researching the right company to hire is your next step. Contact us today to learn how our team is the trusted leader in New York.
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