edited in 2023
You’ve purchased a rental property! You’ve taken the leap to become a landlord. Congratulations!
Now, what? You face the first question – you have to decide who’s going to manage your rental property… you, a resident manager or a property management company. Personally, we lean towards always using a property management company but that strategy may not be suitable in all situation.
To help you determine if that’s the best business decision for you, here are some instances in which you may want to hire a property management company for your rental:
You have many properties and rental units, and you don’t have time to do it all yourself.
You live far away from your rental property. In most cases, many problems that arise with rental properties need immediate attention.
You don’t want the hassle of having employees. Hiring a resident manager or others to help with your rental means dealing with all the hassles of having employees such as hiring and firing, supervising, providing a safe work place, supplying equipment needed to do the job and paying payroll and employment taxes. Property management companies are independent contractors, not employees, so you avoid all those hassles.
You don’t want to screen potential renters. A management company can screen potential renters and handle problems that arise with tenants. You don’t want to manage the property. If you don’t like handling the day-to-day operations of rental property, then handing over that management responsibilities to a property management company makes sense.
You can afford it. Fees charged by property management companies vary depending on the type of property (commercial versus residential), the number of properties and units you need managed, the area in which your properties are located and the services that are included.
To give you a ballpark idea of the cost, the average property management fee can range from 4% to 12% of monthly rent.
Interested in learning more about property management? We can share our experience with you. If you’d like to learn more about specific examples, let’s chat!
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