Pros and Cons Of Working With A Property Management Company
If you are planning on hiring a property management company, you’ll want to know what the pros and cons are. This guide will let you know what to expect. A property management company will be able to do all kinds of tasks.
However, they might not be able to perform certain tasks. It’s also a good idea to know what they can or can’t do. This way, you’ll understand who is responsible for what.
For more information on property management, find out here via the Teifke Real Estate website. Let’s begin with the list of pros and cons below.
Pros
Industry experience
A property management company will be experienced. They have handled all kinds of properties for as long as they have been in business. They will even explain their standard operating procedures on their website.
They have dealt with everything from lease breaks, tenant disputes, evictions, and everything in between. They are the best at what they do. Which means you won’t be spending time or money doing everything yourself.
More time for you
A property management company is the ultimate time saver. You have more pressing priorities to deal with. The last thing you want to do is be distracted by what’s going on with your properties (assuming they are trivial things).
A property manager will be able to delegate tasks such as repairs, meeting with tenants, and other things to ensure your property is in good condition. Someone will be there to fix a broken sink or mow the lawn. And someone will handle the finances of your properties so you don’t have to worry about skipping out on tax payments or the insurance premiums.
Response time for maintenance requests are quick
A tenant will submit a maintenance request if something is broken. Someone will respond quickly and be able to handle the issue. It will give tenants peace of mind knowing that they are a priority when something bad happens at their home.
The sooner a maintenance worker arrives, the better. Tenants will be happy with the quick response times and repairs. It will also mean greater chances of retaining tenants once their lease expires.
That is unless they decide to move elsewhere after the lease expires. When that does, it will create vacancies. So a property management company will be tasked to do this next thing.
Handle and fulfill vacancies
When vacancies are available, a property management company will be able to fulfill them quickly. It will take them time to screen through the applicants and choose one that will be a good fit for what they are looking for. They will be able to deny tenant applicants due to certain issues like criminal convictions, poor rental history, and other issues.
They cannot deny an applicant for discriminatory purposes. This can result in lawsuits if such laws are violated at the state and federal level. Property managers can handle tenant applications with the safety and security of other tenants in mind.
If someone was convicted of a crime, they might still be a threat to the other tenants. To be safe than sorry, a property management company will deny them.
Cons
Expenses
While it might be expensive, it may be a necessary one at that. However, the rate for property management per month will be based on a percentage. For example, they might charge ten percent for all total rent collected.
So if you are collecting $20000 a month in total rent, the property management fee will be $2000. There also may be additional fees that apply such as renewal fees, extra maintenance, and even cancellation fees. When looking for a property management company, ask them what fees they charge other than the standard monthly rate.
The last thing you need is to be nickel and dimed. Your finances are important and they shouldn’t be tampered with by a company that you can’t trust.
Hiring the right team
There may be more than one property management company in your area. So it may be a challenge to choose the right one. You may need to choose one based on your needs and preferences.
As mentioned, affordability will also be something to take into consideration. Find out which property management company will be able to handle the tasks that need to be done. Also, find out what tasks they are unable to do.
It’s always a good idea to find a property management company that is able to do more at a reasonable price. You don’t want them lacking in their abilities. You can screen and interview the proper personnel if you feel it is the best opportunity.
Lack of involvement
With property managers taking care of much of the tasks, you’ll feel like your role may be reduced. Property management companies understand that it’s your property. You can still make decisions when and where needed.
However, you shouldn’t hover over them every single time. Minor tenant issues can be handled by them. The only time they may need you is when there is a dire situation.
If you need to be involved in many of the decisions surrounding your property, self-management may be more of your style. However, that will depend on how many properties you own. If you own one property, self-management won’t be an issue if you have enough time to do the tasks.
Final Thoughts
If you are hiring a property management company, you’ll want to review this list of pros and cons carefully. This way, you’ll know exactly what to expect from one. Self-management may not be something you want to do.
So it’s best to hire a professional management company that will handle each of your properties. They’ll have the right people and the right resources that can help you. They’ll do a good job keeping your properties looking good for the most part.
Hire the best company that you can bring on for the long haul. You’ll love them so much that you can use them for as long as you like.
