If you are a landlord or thinking of becoming one then you know that there is more to it than collecting rent every month although that is an important part of the job. Many property owners choose to handle the work themselves but there are many factors to consider and hiring a company to handle rental management services may be the right choice for your business. In making your decision, you will want weigh your options against your needs and ability to outsource including the number of properties you have for rent, your availability and your willingness to manage on a daily basis. A property management company can be a tremendous advantage to your business under the right conditions but only if it is affordable.
You may want to hire a property manager if your business falls into any of the following categories:
You can afford the cost of rental management services. A property management company will charge 5%-10% of the cost of rent which depending on your circumstances, could be too high to justify.
You live far away from your rental property. You will gain peace of mind that small and large issues will be handled professionally despite your physical absence.
You own multiple properties. The more units you own, the more value you will receive from rental management services.
You do not want to be an employer. In some cases, owners hire property managers or other maintenance staff to manage their property. You can avoid being an employer by contracting to a property management company who will use their employees to handle the work.
You do not have the time for or interest in day-to-day management. From finding the right renters to handling a broken water heater, managing a rental property takes some work. If you want your property to be a strict financial investment without daily management on your part, rental management services may be ideal.
You are participating in an Affordable Housing Program. There are often a complicated set of rules in place to ensure compliance with the housing program and it may be in your interest to hire a company with experience in this area.
What Rental Management Services can you expect from a Property Management Company?
Rental management services typically involve advertising/marketing for and screening renters including background checks for income, credit score, criminal and rental history. A background check can significantly increase the odds of a satisfactory rental relationship so this is a critical service. You can also expect a property management company to handle signing of a legal lease, move-in and move-out property inspections, rent collection, any needed maintenance or repairs, responding to tenant questions or complaints and pursuing eviction proceedings if necessary. Upon completion of a lease, you can expect rental management services to include an effort to sign a new lease with the current renters or to seek new tenants. You will also likely receive basic accounting services such as an annual report of your rental income and any repair invoices for tax purposes.
A good property management company can give you the peace of mind you need to manage your property without the responsibility of becoming an employer or a significant investment in your time or energy. A rental property should be a valuable business asset so please weigh your options carefully. If you are trying to decide about hiring a property management company, please contact Son-Rise Property management with any questions. We would be honored to work with you!