When you decide to invest in real estate, one of the next big questions is whether you’ll also invest in hiring a property management company to handle your property or whether you’ll be a self-managing landlord.
No matter if you’re an experienced real estate investor or a first-time investor, you’ll benefit from the years of tailored knowledge and experience a property management team can give.
Your ROI will show significant benefits once you leave the management to a professional company, and it’ll cause you less stress.
When working with a professional property management company, you can expect some of the following benefits:
- Rent will be collected on time and in full. They’ll also follow up on any late fees or notices needing to be given to tenants.
- Attending to maintenance calls and repairs at all hours with prompt and excellent service
- Professional advertising and marketing strategies to fill your vacancies with high-quality tenants as quickly as possible
- Maintaining financial records for all of your rental properties
- Screening tenants to minimize the chances of tenant damages or eviction
Is Hiring a Property Management Company Worth it?
As an investor, you want to save as much money as you can, but also earn the most from your investment. That being said, a lot of investors aren’t interested in being landlords or underestimate the amount of responsibilities they’ll have when self-managing.
Not only do you have to market your property extensively before renting it out, but you’ll have more responsibilities to take care of.
You’ll have to screen all potential tenants, conduct interviews with those you think are qualified, draw up a lease agreement, perform regular property inspections, conduct maintenance, organize your finances, collect rent, and so much more.
Many investors are also interested in looking for new real estate to invest in or other investment endeavors.
With a property management company by your side, one team can handle all of your properties within a certain area and save you both time and money. By having someone close and on-call at all times, your tenant stays happy and your property stays in good shape.
Apart from the basic responsibilities a property management company would take on, you also have extra benefits to their years of real estate expertise:
Advertising and Marketing Expertise
Since most property management companies have been in the real estate industry for years, they know the ups and downs of marketing all different kinds of properties to maximize your income and fill your vacancies quickly.
Local Market Knowledge
Property management companies will know your area inside and out.
Depending on your property’s neighborhood, amenities, size, and more, they can figure out the best price for your unit, maximizing income without alienating a majority of the tenant market.
Conducting Property Showings
Another major benefit of having a property management company as your partner is that they can conduct property showings on your behalf.
One-to-One Tenant Attention
The landlord-tenant relationship can be difficult to navigate. A professional property management company will know how to deal with even the most problematic of tenants and keep your unit running smoothly.
Maintenance and Repairs
Your unit will need regular property inspections and occasional repairs to keep it in its best shape. A property management company will take care of all of that for you.
Deciding to Hire a Property Management Company
Hiring a property management company isn’t an easy decision. Take your time getting familiar with property management companies in your area.
Make sure they are open to answering your questions, diligent in their work, and friendly to work with. Don’t rely just on cost to make your decision.
Before giving anyone a call, decide what qualities you want most from a property manager. Put together a list of unnegotiable requirements and go from there, almost like a screening process for the company instead of a tenant.
Then, try to see if they deliver on their promise. Ask for references of current clients and see if their experience matches up with what you were told would be provided within the company’s services.
When looking to hire a property manager, make sure to evaluate everything from cost to how you feel during your talk with the company. These people will be your partners, so make sure you take your time and choose carefully.
Our team here at Bigham & Associates is here to help! Get in touch with us today to find out how we can help you get the most out of your real estate investment.