Whether you have problems with tenants running on you or them leaving the rental property in disorder, you might consider calling in the help of a property management company. These companies deal with issues that concern your rental properties such as prospecting tenants, collecting rent, taking care of maintenance works and the needed professionals, addressing complaints, and more.
The Numbers Game
For many property investors, it only makes sense that they employ a property management professional once they have a larger number of properties to look after. When you have just one or two rental properties which are occupied by long-term, good tenants, you need to ask yourself whether or not it would be worth paying somebody else to do the small amount of work that you do. On the other hand, if you have a large number of rental homes with short-term tenancies that are always changing, investing in a property management company is probably a good idea. It is worth noting that it usually costs around 7% – 10% of weekly rent to hire the services of these companies.
Benefits
There are a number of benefits to hiring a property management company, with the first being that they take any work that you’re currently doing instead. This means that you’ll be free to do whatever you want without worrying about your properties – your property management company will find new tenants, evict bad tenants, chase payments, arrange for repairs, redecorate, and anything else that needs to be done. Investing in a property management company means that you will truly start to experience the benefits of earning a passive income as the only thing that you will be required to do is pay a monthly fee, usually a percentage of the rent.
New Landlords
Whether or not you need to hire a property management team is one of the big questions asked by new property investors who have decided to rent their property or properties out to tenants. In many cases, hiring a property management company can be the best idea for investors who are new to the whole thing as it means that there is less chance of things going wrong, for example, property management companies have all the necessary resources to background check potential tenants and get references from previous landlords. As a new investor, it’s a good idea to work alongside a property management company, rather than simply leaving them to do all the work for you. This enables you to learn about property management, giving you the chance to learn the nitty-gritty things about managing a property.
When you invest in property for a long-term agreement such as renting it out to tenants, it’s important to have a good plan in place for proper property management.