It’s a given that you can find tons of information online regarding the benefits of hiring property managers or management companies. Although these benefits can be long-lasting and very real, it’s still important to know why landlords and real estate investors should consider hiring their services. The first thing you want to remember is that there will be times when this is not an ideal solution.
For instance, this could be the case if a landlord/investor has enough experience and free time to handle the job. It may also be that the landlord/investor lives in close proximity to their rental properties. Maybe they’re in a position where they can inspect their properties, respond to repair inquiries, or settle complaints between the tenant and their neighbors. In these situations, there is no need to hire a management company as there are no daily requirements.
When is Property Management Required?
Even though hiring a property management company isn’t necessary, based on the aforementioned scenarios, there are just as many situations when this is something you should consider. There are going to be times when the real estate investor does not have enough time to manage their rentals or that they simply want nothing to do with the responsibilities involved in managing the property. Yet they need a responsible professional to handle it all. And that is why as a rental property investor, there are 5 key reasons to hire a property management company.
1: You don’t have the resources or time. When you have a property management company overseeing your rentals, they will be able to show the property and vet any prospective tenants when have neither the resources nor time to do so yourself.
2: You don’t have the time for “quality control.” In other words, you’re unfamiliar with applicant screening and don’t know what to look for when vetting them. Plus, you may not be able to conduct annual or bi-annual inspections like a property manager would.
3: You don’t live close enough to the property. Whether it’s been this way from the beginning or you recently relocated farther away, it will become increasingly more difficult to cater to the needs of the tenant as well as the property itself.
4: You need a lease that protects you and your property. One of the primary benefits of hiring a property management company is that they have strong lease agreements in place to protect you and your property. You never have to worry about having all your “I’s” dotted and your “T’s” crossed.
5: You need better tenant retention. Extended vacancy periods and high turnover rates wreak havoc on your investment and monthly income. When a property management company is leasing or renting to higher quality tenants and maintaining your rentals to a high standard, tenant retention rates will increase while vacancy periods will decrease.