Educational Resources

6 REASONS TO HIRE A PROPERTY MANAGER

While many property owners find the aid of a resident manager satisfactory, you will need a higher level of assistance as your business grows. The decision to hire a property management company should include a routine cost-benefit analysis to determine if it is right for your individual situation.

A first-rate property management company will collect and pursue rent, negotiate with vendors, handle tenant concerns responsively and perform preventative maintenance as needed. These companies add value to your property and are well worth their expense if your budget allows.

Here are six signs that you would benefit from partnering with a property management company:

 

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You own multi-unit properties: Owners who are in possession of multiple properties, or whose properties contain many units, benefit markedly by hiring a property manager. Property management companies employ streamlined systems for cost-effectiveness and save you money by handling issues efficiently.

 

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You live a great distance from your property: Many problems associated with property ownership require onsite intervention for adequate resolution. Consider hiring a property manager if you live more than 30 minutes away from your property.

 

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You prefer hands-off ownership: Using a property management company allows you to reap the benefits of your investment without dealing with day-to-day hassles. This gives you time to develop your business and search for additional properties.

 

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You can afford the cost: Most reliable property management companies will charge anywhere between 5% to 10% of the owner's rent revenue, depending upon the size of the property and many other factors. 

 

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You don't want to hire employees: Employees, including the resident manager and maintenance team, involve specific legal and accounting issues that significantly add to your task list as a business owner. Property management companies, however, are hired as independent contractors.

 

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You own an affordable housing property: Affordable housing programs are often associated with an intricate set of rules that must be followed in detail. Experienced property management companies understand these regulations thoroughly. They ensure owners continue to receive grants and other governmental assistance.

 

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In order to acquire all the benefits of using a property management company, owners are often tempted to settle for the lowest rates possible. We explore why this is ill-advised in Property Management: Cheapest is Rarely the Best.

 

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