In this day and age, it’s more important than ever for landlords to manage their rental properties effectively. The key to a successful investment property is creating an environment that attracts quality tenants and results in positive cash flow. Choosing to hire a property management company can help landlords achieve these goals, but the decision of whether or not to outsource property management services comes with a number of considerations. In this blog post, we’ll explore the cost vs. the benefits of hiring a property management company and help you decide which is the right option for you.
What do property managers do?
A property manager is responsible for the day-to-day operations of a property or multiple rental properties. This includes finding and screening tenants, collecting rent, maintaining the property, property inspections, and addressing any tenant issues that may arise. By hiring a property management company, rental property owners can outsource all of these responsibilities to someone else, freeing up their time to focus on other parts of the real estate business.
Services Offered By a Property Manager
When you hire a property management company, you’re hiring an experienced team of professionals who can take care of everything from finding tenants to collecting rent and managing repairs. A good property management company typically offers the following services:
Tenant Screening
A property management company uses its extensive networks to find qualified tenants quickly and efficiently for the property owner. They also have access to credit reports, background checks, and other screening tools that can help identify and avoid potential problem renters.
Leasing
Property management companies are experts in lease agreements and know how to create documents that protect the interests of both landlords and tenants. They also handle all negotiations with prospective tenants, so you don’t have to worry about losing out on a good tenant while you’re busy doing other things.
Rent Collection
Property management companies are experts in rent collection and know how to get your payments on time, every time. They also keep track of late payments, NSFs, and other issues that could affect your bottom line.
Maintenance and Repairs
Property management companies typically have relationships with local contractors and can respond to maintenance requests quickly and efficiently. They’re also responsible for creating a preventative maintenance plan to help avoid costly repairs down the road.
Marketing
A property manager is an expert in marketing to get your property the exposure it needs. They create eye-catching ads, list rental properties on all the major rental websites, and do everything they can to fill your property fast.
Benefits of Using a Property Management Company
So why should you consider hiring a property management company?
Here are some of the benefits you can expect:
Increased Rental Income
A property manager knows how to get the most out of your property. They’ll fill it quickly and keep your tenants happy, which means less downtime and more rent payments in your pocket each month.
Recording Keeping
A property manager keeps detailed records of all property activity, which means you don’t have to worry about keeping track of tenant payments or property expenses. This will help when it’s time to file your taxes for the year because everything will already be neat and organized.
Reduced Wear and Tear of Your Properties
Property managers have experience finding good, quality tenants and keeping them happy. This means less turnover of your tenants occupying your real estate and less likely chance of getting an irresponsible tenant. A good property manager will know how to avoid damage to your property, which means you won’t need as many repairs down the road.
Less Stress
A property manager will take care of every aspect of property management—from screening tenants to handling maintenance issues—so everything gets done on time and correctly, relieving some of the burden from your shoulders.
Costs of Using a Good Property Management Company
Although hiring a property management company can greatly increase profitability over time, it does come at a cost. Here are some factors that affect the price:
Location
A property manager typically charges more in high-rent areas like New York City or Los Angeles than in lower-cost cities.
Size of Property
The more property you have, the more work property management firms will need to take on. This means that they may charge a higher percentage fee for their services.
Number of Units
Similarly, the more units you have in your real estate portfolio, the more work a property manager will need to do. Thus, the cost could be higher.
Services Required
Property managers typically charge more for services like leasing and collecting rent. Maintenance and repairs are usually less expensive but may vary depending on the location and severity of the issue.
Contract Length
Most property management contracts are month-to-month, so it’s easy to cancel if you decide the service isn’t right for you. Some property managers may give you a better deal if you sign for a longer period of time.
When considering whether or not to hire a property management company, it’s important to weigh all the pros and cons carefully. Property managers can be a great asset when it comes to managing your rental property, but they also come with a price tag. If you’re serious about your real estate investments being the best, it might be time to consider hiring a property manager.
Moral of the Story About Property Management Companies
If you’re unsure whether or not the benefits of using a property management company outweigh the costs, speak to an experienced professional who can help you make the right decision for your property. They can give you a list of all of the property management services available to you. From there, you can see if the cost is worth the benefits you’d be receiving.
Suncoast Leasing and Management, LLC are your local certified property managers! We provide a wide range of property management services to help real estate investors manage their investments. Areas we serve include Manatee and Sarasota Counties. If you have rental property or want to invest in rental property and don’t want to deal with the daily to-do lists, Suncoast Leasing and Management can help you! Contact us today and see how a good management company can change how you manage your investment real estate. Call us at (941) 993-2020 today!
