Should You Hire a Property Manager? Pros and Cons to Consider

Should You Hire a Property Manager? Pros and Cons to Consider

Turning a home into a rental property is a great way to bring in extra income and build your personal wealth over time. However, managing these properties takes a great deal of time and effort — especially if you own more than one. This is why many landlords choose to hire property management companies.

While some landlords will hire property managers without hesitation, others may not be ready to make the investment. This guide will help you decide whether a property management company is right for you. By considering these pros and cons, you can ensure that you spend your money wisely and make informed business decisions.

Pros:

They handle tenant logistics.

Filling your rental properties and working with tenants is one of the most time-consuming landlord responsibilities. You can significantly save on time by hiring a property management company. The property manager will book showings for your house or apartment, handle the rental application form, and screen tenants. When this process is covered, you can know that the best possible tenants are living in your property.

Once the properties are filled, the property manager will handle lease signing, security deposits, and general tenant relations. You can then work your day job or take care of other responsibilities. The management company will involve you only when necessary.

Maintenance is covered.

When renting out your home, it’s inevitable that maintenance issues will arise. Stoves stop working, drains clog, and electricity goes out. With a property management company in place, you do not need to handle these responsibilities. Depending on your contract, you may need to give the final approval of services. Otherwise, the property manager will take care of emergency repairs and general upkeep of the property.

They are versed in legal compliance.

Landlord-tenant law can be complicated, but property management companies have the experience to ensure their own compliance. They know how to handle late rent and other lease issues. You will also be notified if you need to repair your property to make it safe for tenants. Property managers often have legal teams on their side to ensure that leases and all policies are completely compliant.

Cons:

The cost can cut into profits.

One of the main reasons that landlords choose not to hire property management companies is the cost. While it is an investment in your business, paying a property manager will cut into your bottom line. If you are worried about the cost of this service, consider your reasons for renting out your properties. Landlords who intend to use renting as their full-time income may not need or want to make the investment in property management. However, it can be more reasonable for anyone using rental properties as extra income.

You will give up some control.

When you work with a property manager, you will likely need to sign away some of your involvement with your rental property. This can include tenant relations, maintenance, and showings. While this will be ideal for some landlords, others prefer to be more involved in their own properties. If that is the case for you, consider running the show on your own. With full control over your properties, you will have more say over tenants and policies.

As a landlord, you don’t need to hire a property manager right away. You can try managing the properties on your own to see how it goes. If you find that you want relief from the responsibility, research some management companies in your area. Take your time with the decision and interview several options. You want to make sure that the company you hire supports your goals and can enhance your rental business.

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