Property ownership involves a lot of man-hours and a lot of work. Things that have to be considered include tenants, upkeep, repairs, and rental contracts. As a property owner there can be several issues that make direct management an impossibility. It is in these situations that property management companies can prove to be a useful and prudent investment. The following will notate what property management companies do for property owners and when they should be contacted concerning their services.
What Do Property Management Companies Do For Property Owners?
A property owner may ask what property management companies do that justifies their expensive price tag. They basically handle all the direct on site business that owning a property involves. This includes property upkeep, repairs as they arise, collecting of rent from renters, advertisement of rental openings, and any evictions of problematic tenants. A good management company brings experience in these matters that the property owner may lack. This allows the property owner to oversee their investment without the need for any direct day-to-day involvement.
When Are Property Management Companies A Good Idea?
Management companies are an expensive undertaking and as such a property owner should know if such an investment in needed. In many situations a property owner is quite capable of managing their property. However, property management companies can be a necessity in certain situations. A property owner should consider hiring property management companies if any or all of the following things are true of their situation.
A management company should be considered if the property owner owns more then one property. With more then one property the amount of work involved increases a great deal. This workload is often too much for one person or a non-industry professional to manage.
Another situation that may necessitate a management company is distance. Property management involves several time sensitive issues such as rental payment and on site repairs and emergencies. These things cannot be handled if the property owner lives several hours or states away.
Property management companies are also useful in situations where the property owner is not interested in direct management. Managing a property is a great deal of work and while several people enjoy the challenge and the rewards, not all do. If the property owner’s intent is more investment and less work hiring a management company is a sound choice.
Aside from distance time is also an issue. While a property owner may have all the skills and desire needed to do the job they may not have the time. This is especially true if the property owner already has an existing profession.
Owning property is often just one part of an investment portfolio or a business. If a property owner finds their duties growing either through expanding investment or business concerns they may be unable to focus the attention needed on a property. Property management companies can then come in and take over the property management duties that the property owner was previously doing.
Lastly just because a person owns property doesn’t mean they are interested in being an employer. By hiring a landlord or ground crew directly that makes the property owner their boss. This means they now have to handle all the duties that come with employing workers. That includes employee insurance, salary, and safety concerns. When management companies are hired they are not considered employees, they are technically independent contractors. This means that they are not employees of the property owner nor are the people they employ considered employees of the property owner. The property management company’s pay comes from a percentage of rent.
If you would like to know more about our property management services just contact us for more information!