Whether or not it is smart to hire a property management firm to handle your rental properties depends on your individual circumstances. Here are some factors to consider:
- How many rental properties do you own? If you own a few rental properties, you may be able to manage them yourself. However, if you own multiple properties, it can be difficult to manage them all on your own. A property management firm can help you save time and money by handling all of the day-to-day tasks involved in managing your properties.
- How far away do you live from your rental properties? If you live near your rental properties, you may be able to manage them yourself. However, if you live far away, it can be difficult to manage them on your own. A property management firm can help you by providing local representation and handling any urgent issues that may arise.
- How much time do you have to manage your rental properties? If you have a lot of time to spare, you may be able to manage your rental properties yourself. However, if you are busy with other commitments, hiring a property management firm can free up your time so you can focus on other things.
Here are some of the benefits of hiring a property management firm:
- Peace of mind. Knowing that your rental properties are being managed by a professional can give you peace of mind. You can rest assured that your properties are being properly maintained and that your tenants are being taken care of.
- Time savings. Hiring a property management firm can save you a lot of time. You won't have to worry about finding tenants, collecting rent, or handling maintenance issues. The property management firm will take care of all of these tasks for you.
- Expertise. A property management firm has the expertise and experience to manage your rental properties effectively. They will know the local rental market, how to screen tenants, and how to handle maintenance issues.
Here are some of the drawbacks of hiring a property management firm:
- Cost. Property management firms charge a fee for their services. This fee can range from 5% to 10% of the rent collected.
- Loss of control. When you hire a property management firm, you will lose some control over your rental properties. The property management firm will make decisions about things like tenant selection, rent collection, and maintenance.
- Property management firms and real estate brokers. Management firms that also sell real estate might be more interested in selling your property rather than managing it and could possibly try to talk you into listing it with them.
Ultimately, the decision of whether or not to hire a property management firm is a personal one. You need to weigh the benefits and drawbacks and decide what is best for you. If you decide to hire a property management firm, be sure to do your research and choose a reputable company. Here are some tips for choosing a property management firm:
- Get referrals from friends, family, or other real estate professionals.
- Interview several companies before making a decision.
- Ask about the company's experience, fees, and services.
- Make sure the company is licensed and insured.
- Get everything in writing, including the terms of the management agreement.