Managing your rental property can be difficult.
It’s thus only natural to want some help with the process.
Plenty of landlords turn to property management companies to help ease the burden.
Here’s a guide on what is a property management company, and whether it’s right for you.
What is a Property Management Company?
A property management company oversees a rental property on behalf of the landlord. The main goal is to take the weight off your shoulders.
Property management companies are responsible for many things. This includes:
- Finding the best tenants for you
- Collecting rent
- Handling repairs and maintenance
- Marketing the property
They use background checks to choose the best tenants. This reduces the risk of problematic tenants and missed rent payments.
Chasing rent payments every month can be a pain.
Property management companies ensure your rent is always paid on time. This saves you the trouble. If a tenant fails to pay their rent, they will also handle this on your behalf.
Regular maintenance is important for keeping a property in good condition. Property management companies take care of any repairs and maintenance issues.
How much does a Property Management Company cost?
The cost of hiring a property management company can vary depending on many factors. This can include:
- The level of service you need
- The type of property
- The location of your property
Property management companies will usually take a percentage of your monthly rent payments. This can range from around 5% to 15% of your monthly rental income.
But some companies charge a fixed fee instead.
Can I do Property Management myself?
Hiring a property management company isn’t always necessary.
Depending on your circumstances, you may be able to manage your property yourself. You may find it easier to manage your property yourself if:
- You only have one property
- You have plenty of free time
- You live close to your property
There are some factors to consider if you are planning on managing property yourself.
Managing a property yourself can be time-consuming, especially if you own multiple properties. You must be available to your tenants whenever they need you.
If you have other commitments such as a full-time job or family responsibilities, this can become overwhelming.
How to find a Property Management Company
Finding the right property management company is important. Here are some ways to find the right property management company for you.
Online search
Most property management companies have a strong online presence. A quick Google search will show ones in your area. This often comes with reviews from past customers.
Ask a local estate agent
You’ll usually find that estate agents are happy to help with this. They can point you towards the most trustworthy companies. And some estate agencies even offer this themselves.
Word of mouth
Another great way to find the right property management company for you is through word of mouth. This can be through family and friends or even local estate agents and property owners.
Advantages of Hiring a Property Management Company
There are many advantages of hiring a property management company. The main ones can be seen below.
Saves you time
One of the biggest advantages of hiring a property management company is that it saves you time.
Managing a property requires a lot of time and patience. From tenant enquiries to daily maintenance, managing your own property can become overwhelming.
Hiring a property management company, gives you more free time to focus on the other priorities in your life.
Ensures legal compliance
There are many laws and regulations surrounding owning and managing a property. Failure to comply can result in serious consequences.
Property management companies are aware of these requirements, ensuring your property is compliant. So, you can relax knowing this is all taken care of.
Point of contact for your tenants
Property management companies also act as a point of contact between you and your tenants. This is convenient if you live further away from the property or if you have a demanding schedule.
Disadvantages of hiring a Property Management Company
It may seem like hiring a property management company is the answer to all your problems. However, there are some disadvantages to think about.
Can be expensive
While hiring a property management company can often save you money, it can sometimes be more expensive.
For instance, if your rental income is low, and the cost of hiring a property management company is high.
Additional fees
You may also be charged extra fees by these companies.
Common examples include marketing and evicting tenants. This can push the price higher than you initially thought – especially if they hide them at first.
Loss of control
The idea of hiring a property management company can be a relief to some. However, you may find it difficult to hand over the responsibilities of your property to a third party.
So, if you like things done in a specific way, hiring a property management company might not be for you.