Many landlords consider hiring a property manager when their business grows and they add more properties to their portfolio. It becomes more challenging to manage due to the complexity of the rental property’s legal and financial aspects.
A property management company or a property manager is a business that helps investors and landlords manage their rental properties. These individuals hire property managers to grow their businesses and free up their time.
Many landlords have difficulty hiring a property manager due to business costs and the contractual obligations involved. Hiring a professional will require you to follow the terms of the agreement, which some landlords find hard to enforce.
Although it’s essential to consider the pros and cons of hiring a property manager, it’s also important to note that the decision depends on your goals and abilities as a landlord.
Advantages
Experience and Expertise
Hiring a property manager has various advantages, such as expertise in managing rental properties. This level of experience allows them to know all the details of the leasing process, including how to advertise the property and screen potential tenants.
Freeing Up Your Time
With the help of a property manager, you can focus on other important things in life, such as your family or new business opportunities. Having a property manager helps free up your time and allows you to spend it on what you want.
Taking Care of Maintenance
Getting a property manager can also help alleviate some of the stress caused by unexpected maintenance issues. They can quickly respond to these issues and provide you with the best possible service. Having multiple vendors ready to tackle the job will save you time and effort.
Reducing Tenant Turnover
Having a property manager can help you increase the duration of your lease and maximize your income. They can also help you keep track of new tenants and ensure that the existing ones are happy with the service.
Local Knowledge
Proper rental portfolio management can be very complex, especially if you’re in a different location than the property. Most investors who don’t live in the same area or have an extensive portfolio of rental properties may hire a property manager to handle their operations.
Revenue Increase
Professional property managers can help maximize your rental income by marketing the property for the highest possible price and increasing the rent. They can also negotiate with vendors for better maintenance deals.
Disadvantages
Less Control
If you’re a landlord, you may feel that you should be involved in the day-to-day operations of your rental property, even if it’s just to increase your income. However, you must have the necessary knowledge about the maintenance and disbursements of your property.
Costs
You should expect expenses, especially when you’re onboarded for a paid service like property management. Although the fees for property management vary depending on the company’s policy, most will typically charge a leasing fee and a monthly fee for the service.
Lack of Direct Tenant Communication
One of the most significant disadvantages of hiring a property manager is that you’ll be unable to maintain contact with your tenants. Most property managers have no-contact policies, which prevent them from communicating with multiple parties. You and the property manager may have difficulty maintaining a positive relationship.
There are many pros and cons to hiring a property manager. Your financial goals, free time, and how much involvement you desire in the management of the property are some of the factors that will determine the pros and cons of this type of service.