This is a new twist on an old favorite: how many landlords are needed to change a bulb?
It’s more complicated than you think. According to a study by Porch, 13% of landlord calls are from tenants asking to change the lightbulb. No wonder 88.3% landlords are stressed when dealing with tenant requests and regular maintenance.
Let’s look at a few additional numbers. In 2023, there will be 296,256 businesses that manage property in the US. This is an increase of 2,1% over 2022. According to statistics from the property management industry, less than half of all landlords in this country manage their properties themselves.
This guide is for landlords who are still struggling to change the lightbulbs on their own properties and experience regular and unnecessary stress. We will examine the pros and con of hiring a property management company to manage your day-to-day concerns.
The Pros of Hiring a Rental Management Company
1. Experience
All property managers are familiar with the issues that can make managing a rental complex for landlords. They are familiar with fair housing laws and have dealt with many tenant problems in the past. Many management companies also hire property managers who are licensed real estate agents, which is an added bonus.
2. Reduce Time Waste
Property owners who don’t have to worry about tenant issues can focus on other things. Property owners who want to increase their real estate holdings can benefit from working with a professional property management company and leveraging their expertise.
3. Geographically Untethered
When you leave your rental property in the hands a professional, you are not bound to the location where it is located. You want to take that job in Seattle or travel the world? It’s no problem. You can follow your dreams while a property manager keeps an eye on the situation.
4. Shorter Vacancy Times
Finding good tenants for your property and keeping them is not an easy task. It is the job of property managers to keep your rental property occupied. Some agreements state that property managers are only paid if tenants occupy a property. Property managers should prioritize screening tenants and do so in a timely fashion. When tenants are on the property, a good rental management company will resolve any conflict quickly and peacefully.
5. The Marketing Section is covered
The right marketing can also help to reduce vacancy periods and turnover. A rental management company can be a great asset to property owners who do not have a background in marketing. This is the case for most. Rent management companies will take care of all the marketing between tenants. This includes hiring photographers, staging your property and advertising to find the right tenants.
6. Spend Less on Maintenance
A rental management company is able to save on maintenance because they have been in business longer than the average property owner. A network of contractors and professionals in maintenance means that your real estate company will be able to get better rates and increase its profitability.
7. Renting a Property: The Problems and Challenges
The daily management of rental properties is not the least important. Property management companies will handle rental payments, maintenance requests like those annoying lightbulbs, and after-hours emergency situations. No longer do you need to keep your mobile phone near at all times.
Cons of Hiring a Rental Management Company
1. Let it go
There are fewer choices for you when a property manager takes care of the day-to-day operation. This can be a disconcerting experience for landlords who have a strong emotional attachment to their property. While letting go certain routine tasks may be difficult to accept initially, many landlords find that they enjoy the freedom, and at the end, they have the final say in making decisions.
2. Costs
A real estate management firm comes at a cost. The ROI provided by a property manager is usually worth the fees. Property management fees are better viewed as an investment rather than a cost.
Most property management companies offer a basic package, as well as separate services to deal with special situations such evictions and late payments. They may also provide maintenance for certain types of properties. Before entering into a management agreement for rental properties, landlords spend time researching possible fees to get the best value.
3. Research Time
It can take some time to find the best real estate management company. Owners should not make a hasty or rash decision. You should make an informed decision. It’s important to avoid making a costly error by staying with a bad property manager after your contract expires.
