Do you own a rental property? If so, you might be considering hiring a property management company. There are many benefits to this arrangement, but some drawbacks should be considered before making your decision. This blog post will go over the pros and cons of hiring a professional property management company for your rental property to help you make an informed decision.
Pros of hiring a property management company:
They are experienced: A professional Perth property management company is experienced with dealing with tenants, repairs, and other aspects of managing a rental. However, you also need to have a property management agreement with the property manager to ensure that your property is well taken care of since it is one of your most expensive assets. Because once the rental property is well taken care of, the rental feel will not shrink.
Professional organizations: Besides having experience in this business, many reputable companies are also members of local or national trade associations that provide them access to continuing education courses and networking opportunities. This means they will keep up on any new laws regarding renters and landlords and remain informed about industry changes to serve their clients better.
They help prevent problems: A good property manager will work hard behind the scenes for you, which could include meeting with your tenant before signing an agreement or looking at prospective properties if yours is not quite ready to rent yet. In this way, they can help prevent problems from arising before you even have them as a landlord.
They increase your options: A property management company will often bring in tenants that other landlords cannot because of their background checks and screening process. This increases the number of potential renters for your investment, resulting in higher monthly income than if you were advertising it yourself on Craigslist or other websites. They also advertise properties using multiple avenues such as newspapers, online advertisements, and social media sites like Instagram and Facebook.
Property managers know how much each tenant should pay in rent: This is another benefit of using a property management company. They are familiar with the average prices for your area, so they can give each tenant an accurate quote when accepting their application and negotiating terms.
Cons of hiring a property management company
The cost: Depending on where you live, it could be costly to hire a professional manager. On top of that, some companies charge extra fees per month to manage your rental unit, which can add up quickly if you own several rentals or even one large home or apartment building. It might make more sense financially for you to do all this work yourself rather than shelling out money every single week/month for someone else’s services.
They will also try to sell you additional services: Property management companies make their money by charging a percentage of the rent every month, but they might also talk you into purchasing other things such as renters insurance or housekeeping services. These are nice perks, but remember that it’s your responsibility as a landlord to protect yourself and your investment from damage caused by tenants.
If they do not follow through on repairs or, require too much communication from you: If there is an issue with one of your properties where something needs to be fixed immediately, a property manager should be able to contact someone quickly without constant updates from you. On the flip side, if they don’t notice problems until months later when rental payments have been missed, then this could mean trouble for you as the landlord.
They may not respond promptly to urgent matters: If there is an emergency with one of your properties, property managers should be able to handle it immediately rather than putting off fixing or replacing something until they can find time for themselves. This means that if a problem arises during their vacation/weekend/busy season, this could put your home at risk until someone else can deal with it, which might take days depending on where they are and how long it takes them just to return your call(s).
Property management companies don’t care about what happens in each rental unless money changes hands: They aren’t living inside the rentals, so chances are, they won notice minor problems like air leaks, damage, broken appliances, and pests until they become a significant issue that could lead to costly repairs or even health issues for your tenants.
In conclusion, hiring a property management company can be beneficial if you need help finding good renters who will take care of the home/apartment as much as possible while also bringing in monthly income from rent payments. However, it’s important to weigh both options carefully before deciding whether this is the best choice for you. It might just make more sense financially and time-wise to manage properties yourself rather than pay someone else an hourly rate every month.