Property management services are not advantageous for all property owners. However, for certain types of investors, hiring a professional significantly decreases the stress of overseeing a rental property. Before seeking the assistance of a trained expert, it is necessary to first evaluate the details of your current situation and whether or not paying for management services would help or hinder you. Assessing your finances, schedule, property locations, and involvement preferences are some essential steps that should be taken before recruiting a manager.
Monthly Service Fees
One of the first questions you should ask yourself is whether you can afford management services. Typically, property managers charge around 4% – 10% of the monthly revenue generated by their clients’ residential or commercial rental properties. Property management companies also differ in the types of fees they charge. For example, if in your contract with a firm you allow your property manager to locate new tenants, you may have to pay a fee for tenant placement, depending on the company. It is always a good idea to choose a company with pricing models that are straightforward and easy to understand.
Accessibility & Availability
The location of your properties and the amount of time you are able to devote to property management should also be considered before seeking a management firm. For example, if you own a single-family home within close proximity to your primary residence and have the time to actively fulfill landlording duties, you probably do not need property management services. On the flip side, if your schedule is jam-packed and you are the owner of multiple properties in various cities across your state, hiring rental managers will ensure your investments are well-maintained.
Allocating Crucial Responsibilities
For some owners, the idea of allowing another person to handle tenant selection, repairs, monthly expenses, etc. is unnerving. Therefore, it is a good idea to determine if you are 100% willing to allow a property manager to handle some – or all – of the tasks associated with caring for a rental property. One of the benefits of a reputable firm is the fact that owners can usually choose the services they want. For example, if you need a professional to oversee maintenance/emergency repairs but would rather handle all other tasks yourself, a management company will afford you that flexibility.