If you own rental properties, you already know how rewarding the investment can be, not only as a steady income stream in the present day, but also as long-term financial security. That said, you also know that it’s a lot easier said than done. From dealing with tenant issues to maintaining the property, owning rental properties can quickly become an overwhelming responsibility. If you’ve been juggling these duties on your own, and you’re beginning to find yourself stretched too thin or feeling overly stressed about the state of your rentals, it’s probably time to hire a property management company to take the load off.
In this blog, we’ll first look at the advantages and disadvantages of hiring a property manager, then delve into the 5 signs that indicate it’s time to call in the professionals.
Advantages and Disadvantages of Using a Property Management Company
Before you answer the question, “Should I hire a property management company?” it’s important to take a 365-degree view of both the benefits and drawbacks of hiring a property manager to look after your rentals.
Advantages
- Time Savings – Hiring a property manager to handle tasks such as marketing vacancies and handling maintenance requests saves you, the property owner, much-needed time that can be spent on bigger-picture issues.
- Professional Tenant Screening – Conducting background and credit checks and verifying employment reduces the risk of late payments, property damage, and tenant turnover.
- Efficient Rent Collection – Property management companies have tried-and-true systems in place to ensure rent is collected on time and cash flow is maintained.
- Legal Knowledge and Compliance – Well-versed in local, state, and federal regulations, a property management company can help reduce the risk of legal properties and potential penalties.
- Maintenance and Repairs – By tapping into a network of trusted contractors, property managers are able to quickly and effectively address maintenance and repair issues.
- Reduced Vacancy Rates – Hiring a property manager gives you a leg up in marketing vacancies, setting competitive rental rates, and maintaining positive relationships with tenants.
Disadvantages
- Cost – If you’re wondering, “How much does a property management company cost?” the answer is typically between 8% and 12% of the monthly rental income, which obviously can impact profit margins.
- Loss of Control – Delegating property management duties gives you less control over the day-to-day operations of property, which can make some owners feel uneasy.
- Potential for Mismanagement – Hiring a property manager without the right experience can, in some instances, negatively impact your property’s performance.
- Communication Issues – To avoid unnecessary issues or delays, having an efficient and effective communication strategy is imperative.
- Additional Costs for Repairs – Some property management companies mark up the costs of repair services, leading to higher expenses than if you handled the maintenance yourself.
5 Signs It’s Time to Think About Hiring a Property Manager
- Your Properties Are Taking Up All Your Time
Are you constantly fielding calls from tenants, handling maintenance issues, and dealing with the endless paperwork? Are these tasks cutting into professional or personal commitments? If so, it’s probably time to consider hiring a property management company to take on those duties.
- You Live Far from Your Rental Properties
If you live far from your property, it can be challenging to address issues promptly and the distance can also make it difficult to keep an eye on the property. Hiring a property manager can bridge the gap by providing on-the-ground support.
- You’re Struggling with Finding and Retaining Good Tenants
High tenant turnover can be costly and time-consuming, leading to lost rental income and increased maintenance costs, so if you find yourself frequently dealing with these issues, it’s probably time to seek professional help.
- Maintenance and Repairs Are Becoming Overwhelming
If maintenance and repairs are proving too much to handle on your own, hiring a property manager with a strong network of trusted contractors and maintenance personnel can help take the load off.
- You’re Not Familiar with Landlord-Tenant Laws
Navigating landlord-tenant laws can be complex and time-consuming, and failing to comply with these laws can lead to costly legal disputes and potential penalties. Hiring a property manager with expertise in this realm can offer peace of mind to an inexperienced landlord.
Whether you’re struggling with tenant issues, maintenance tasks, or legal compliance, hiring a property manager can provide just the support you need to manage your properties effectively.
If you own and rent properties in the Greensboro, NC, area and you’re contemplating partnering with a property management company, the experienced professionals at SLT Properties deliver superior service and the highest level of integrity.
Reach out today for a free quote!