Managing properties can be a time-consuming task. Even if you enjoy managing your property and overseeing day-to-day operations, there is only so much one person can do. Delegation of management duties will be required.
Besides saving you time, hiring a property management company can save you money in many cases. The time saved in managing properties can also lead to the expansion of an existing business. Read on to discover the reasons and situations of why you may want to hire the services of a property management company.
A person that owns many rental properties, especially rental multifamily housing units, is strongly advised to utilize the service of a property management company. If you live far away from your property, then hiring a firm to look after your property is a good idea. They will be able to respond right away to issues when you cannot.
Many people purchase real estate property as an investment to provide them with income. If you are only interested in holding real estate as an investment and don’t want to deal with managing the investment property, then the services of a property management company are for you.
Another reason many property owners choose to hire a property management company and not simply hire a resident manager and upkeep employee is that you will then become an employer. As an employer, you will have to make payroll, comply with all sorts of regulations, and provide benefits to your employees. A property management firm is an independent contractor that you hire. It is much easier and simpler to hire their services and let them pay their own employees.
Sometimes rental properties can be part of government-sponsored programs such as affordable housing programs. These government-sponsored programs have unique requirements and regulations. While you can try and comply with these requirements yourself, it is often easier to hire the services of property management firms to comply with all these complex regulations.
Property management companies often charge a commission of 5-10% of the rent you collect each month. While this can be a considerable cost, consider the benefits you can get from hiring their service. They will take care of rent collection, marketing, compliance with relevant laws, and upkeep of the property. All of this can save you valuable time, allow you to live away from your property, and it could even save you money in some instances as well, especially if you have a large number of multifamily properties.