When it comes to investing in rental properties, there’s a lot of knowledge and experience that can help ensure you provide a great experience to your tenants. However, it’s also important that you take care of your responsibilities, such as ensuring that the home is safe, clean and suitable for the people staying in it. You also need to answer calls on a regular basis and chase down tenants for rent if they’re being slow with payments.
As you can imagine, there are a lot of responsibilities in being a landlord. That’s why many people rely on property management services to help them take the stress out of managing their rentals. But as a first-time investor, is it wise to hire a property management company or should you be learning how to do it on your own?
Less stress, more time to yourself
Property managers are perfect if you’re struggling to find the time and motivation to manage your properties. You can essentially sit back and let them handle everything while you enjoy your profits as the landlord.
Vendor connections can be useful
Property management services are typically well-connected with local vendors that provide maintenance and repair services. For instance, dryer vent cleaning can be carried out on rental properties and hotels to ensure that there’s no clogging or risk of a fire hazard. If you’re managing a property on your own, then there’s a good chance that you won’t even know about certain maintenance quirks like this.
Keeping rental price up to date
Property managers are great at understanding market conditions. This means they can ensure that you’re always getting a good price for the rentals that they’re helping you control. They’ll assess market conditions and compare it with other local properties. They’ll then use this data to set a fair rental price for your property to keep it competitive.
No more dealing with tenants
It can be stressful dealing with tenants especially if they’re being difficult. It takes a lot of experience and practice to diffuse certain situations and staying in touch with them 24/7 as their landlord can be a huge responsibility. If you want to take out the stress of managing a property and communicating with tenants, then we highly suggest that you consider property management services that can represent you.
Cons to keep in mind
There are two main cons to keep in mind with a property manager. First, they do charge a fee and it’s often a percentage of your profit margins. This means it can be a considerable amount and you’ll need to keep the cost in mind. Second, you might lose some control over handling your property. You can always negotiate this to make sure you don’t lose too much power.
As you can see, property management services come with ups and downs that should be considered carefully. While there are certainly plenty of upsides to property management services, we can’t forget that there are some downsides (such as the added cost of management) that might put some people off.