Some Pros and Cons About Hiring a Property Management Company

By E-Renter Tenant Screening
Posted on October 23, 2012 under Landlord Tips | Be the First to Comment

Perhaps you’re a new rental property owner, and you’re not sure how to go about managing your property. Or maybe you’re a successful landlord who is thinking about turning over the day-to-day management of your properties to a professional company. Perhaps you’ll even take it easy and enjoy some free time again.

Whichever the case may be, hiring a property management company has its upsides—like no more tenant phone calls in the middle of the night. It also has its downsides. For example, no company will care for your property like you do.

Before you decide whether or not to hire a management company, here are some additional pros and cons to consider.

Pros and Cons of Hiring a Property Management Company
Property management companies are professionals and are experienced. Here are considerations that make it worth hiring one:

• You’ll spend less time working on (and worrying about) your rental properties.
• You’ll save travel time going to and from your properties.
• You will have the peace of mind that comes with not dealing directly with tenants for rent collection, complaints and other issues.
• Someone else will handle maintenance and repairs.
• They will determine the best rent, based on the market and what your property offers.
• A quality PM company will find the most qualified tenants.
• They have connections with lawn, snow removal and maintenance and other service companies, and can often procure services at better rates.

On the other hand, property management companies cost money, so before you hire one, take the following into consideration:

• You won’t have the advantages of hands-on, do-it-yourself management, such as seeing for yourself how things are going at your properties.
• You may not need all of the services provided by property management companies. For example, if your property doesn’t require a great deal of upkeep, you could be overpaying.
• A property management company may not feel as compelled as you would to keep your vacancies low.
• You will have to manage the property management company. This could take substantial time and effort.
• Do you have the extra cash every month to pay 8–10% of your income to a PM company?

For some landlords, hiring a property management company is an unnecessary expense. For others, the additional free time and decrease in stress makes it worth every penny.

What do you think? Do you prefer to manage your own properties or was hiring a professional company the best decision for you?