The Pros and Cons of Hiring a Property Management Company
Real estate is an excellent way of earning a passive income. Whether through capital appreciation or renting it out to tenants, it allows you to profit from a valuable asset without spending all your time working for it. As long as you maintain your property and keep things ticking over, you can enjoy your reliable earnings for as long as you like.
But when you own a rental property, you have a choice to make. You can either manage it yourself or hire a property management company to do it for you. As a landlord, your responsibilities are numerous. You have to find tenants, screen them, and then handle the necessary admin for them to move in. You then have to be on call to deal with enquiries and organize any repairs and maintenance. The whole time you need to ensure you are fulfilling the terms of your contract and remaining compliant with your legal obligations.
It can be time-consuming, particularly if you are a first-time landlord. If you go down the other route and hire a property management company, however, they will take all of this work off your hands. There are many reasons to select either option, and it’s worth taking some time to consider your choices. To help you make your decision, here are the pros and cons of hiring a property management company.
The Pros
Saves time: You may have a full-time job or other properties to deal with. Maybe you just want the freedom to go traveling and enjoy yourself. Either way, a property management company can save you a great deal of time to spend as you wish. They will take care of all the arduous tasks, and you will only need to check in occasionally.
More experience: A reputable agency will have a wealth of experience in the industry. As a result, they will have a proven, efficient process for listing homes and will be better able to come up with the right price and draw up terms of the contract. They will ensure you remain legally compliant throughout and will have better tools for screening tenants.
Faster response times: When a tenant contacts you with a request, you could be on the other side of the country and unable to help them for several days. Whereas if you use a property management company, they will be able to sort out the issue right away.
The Cons
The cost: All these benefits don’t come cheap, and you will no doubt have to pay a significant amount for your property management services. It’s worth weighing up the benefits with the costs and deciding whether or not it is worth all that extra time. Most agencies offer some flexibility in terms of their services, so for a lower cost, you could hire them for the sole purpose of maintenance and nothing else.
Lack of involvement: You want to be in control of your property, and know everything that’s going on. Yet for minor issues, the property management company is unlikely to involve you in the decision. It can be hard to relinquish this responsibility to a third party.
