When is the right time to hire a property management company?
2017 is still new to us, but it is here and happening so let’s dive in strong! Happy New Year and happy investing to you in 2017. If you are a real estate investor, it is important to know current information of property management companies, pros and cons. Most importantly, you need to know when to take that step in your business. So, let’s talk about that.
This may be one of the biggest decisions you make as an investor and landlord, and it can be the best help you need or the worst decision at the time. We want you to have a positive experience with investing in real estate in every aspect that comes with the territory. If you are a small investor and are capable of handling everything yourself, it may save you money. Often, landlords chose to hire an employee who helps take care of the basics and needs of the properties on a small scale. However, that scenario very much depends on how much help you are in need of. Hiring a full scale property management company is like bringing in the big guns. They have the staff and resources to handle everything for you, while you maintain the final say and pay their monthly cut for those management services.
If you need the big guns, these big companies are a great asset! They are also a great cost. Depending on their rate and how many properties they manage for you, things could get costly quick. The goal is to make a profit. So if you are in over your head in need of help, and hire a company, be sure you can afford it.
Just to brief you in what PM companies can do you for:
• Tenant vetting, application and previous rental history check, and weeding through prospects
• Advertising and marketing of current houses ready for tenants
• Collect rent
• Handle maintenance and general repairs
• Pursue evictions if necessary
• Place desirable tenants in properties for best outcome
• Provide Peace of Mind!
If you are trying to decide when the right time for you to take the leap and hire a PM company is, here are some tips to help you determine it.
1. You currently have lots of properties and/or rental units
2. You are not located nearby to your rental properties
3. You can afford up to 10% of the rent cost to go to the PM company monthly
4. You simply are not interested in managing your properties
5. You do not have the time to manage
Contact The Irvin Team for any additional help with your real estate investment needs!