Myths About Hiring Property Management Companies

By E-Renter Tenant Screening
Posted on October 5, 2009 under Landlord Tips | Be the First to Comment

Some landlords get into the rental property business as a way to earn passive income. That is, money that somehow makes itself with little or no effort on their part. In reality, running an income property business is like any other—it takes work and effort to make money.

Whether or not to hire a property management company is a decision most landlords must make at some point—especially if the number of units owned increases to more than you can handle yourself. However, there are a few myths around what it means to hire a property management company:

Hiring a PM company means I won’t have to do anything but count money. Not true. You need to be involved if you want to maintain good tenants and a positive cash flow. The PM company might be managing your properties, but you need to manage the property manager.

Hiring a PM company means all my problems become someone else’s. You own the property, so you need to stay on top of your business, even if you have a manager. Following up on vacancies, repairs, and lease enforcement can take as much of your time as managing property yourself.

Property management companies are all the same. False. Educate yourself and interview property managers to find the one that is the best fit for you. It’s important they know the local market, local laws, and what you how you want your properties run.

Property management companies are good at evictions. Not all of them are! We’ve heard stories about weak managers who did not start eviction proceedings as quickly as they should have—and made costly mistakes, too.

Property management companies will care about my properties as much as I do. That’s possible, but not likely. If you are a landlord who needs a property management company, do your research, take your time, and state your expectations clearly. Ask questions and interview several companies before you hire one.