The advantages of using a management company far outweigh the disadvantages. Even if the numbers don't quite work and you determine you may be supplementing costs to the management company to keep your rental property, it is still a great value.
Why You Should Use a Management Company?
One of the main reasons you need a management company is that they make sure your property stays up to snuff on local and national rules and regulations. It's always ideal to have a subject matter expert on premises to answer questions regarding tenant rights and responsibilities. You certainly pay more an accredited property manager, but you may be saving a lot of money down the road if they prevent you from committing inadvertent violations because you aren't familiar with the housing code.
Collect Rent that Falls within Market Expectations
Property managers determine the average rental rates in the area and price your property competitively. The market is always in flux. Rents change frequently, but experienced managers can gauge the trend and set contracts for a year out (the length of most rental agreements). The management company should let you know when to expect higher or lower revenue basic on the condition of your property and the neighborhood in general.
Stay Clear of Dealing with Tenants
Property managers communicate with the tenants on your behalf. That means you need to hire a company that treats tenants equitably while looking out for your interests. The property manager should be available to address complaints and emergencies around-the-clock so that you don't have to. How much would you give to never get a call from a tenant in the wee hours of the night.
Property managers interview tenants and investigate whether they have a criminal history. An irresponsible tenant can damage your property and cause issues with other tenants that impact your finances. It's difficult to evict lackluster tenants, so they need to be sorted out before a rental contract is signed.
The only disadvantage to turning over the keys to a property manager is the cost. On average, it'll cost you the first month's rent plus 8 to 10 percent each month for the life of the contract.
Hiring a Good Property Management Company
It can be hard to find a property management company, especially in a busy market. Choosing unwisely costs you profits on your property but can cause bring down the value of the property. Find a company that does a great job of maintaining the building and property to avoid a decrease in the perceived value of the property.
When you're looking for good residential property management companies, consult local companies located near your property for best results.