All About Hiring A Property Management Company
Hiring a property management company is something that most landlords think about at some point in managing the day-to-day operations of their properties. However, just because it's something they think, it does not mean it's something that they need. In this article, we are going to show to you the different instances when you should be hiring a property management company.
You know you need a management company if you find yourself in any of the following situations:
You own a lot of properties and you simply do not have the time nor the inclination to manage the day-to-day operations of each of them, finding and managing tenants, doing maintenance work, collecting rent, paying taxes, among other things.
You can afford to pay the fees. Hiring a third-party to manage real estate properties is not cheap. And if you get a quote from different companies, you will see that you need to give five to ten percent of your revenue just to keep everything going smoothly.
You hate employing a property manager. When you hire a property manager, you are contracting a third-party to work for you. You will not be binding yourself to an employer-employee relationship where you need to negotiate salaries and provide benefits. The payment is straightforward, and as we said before, you can expect to pay five to ten percent of your revenue.
If you live far away from your property. Obviously, if you have to drive three hours one-way to be on your property, you really have to think about finding someone to manage the day-to-day operations of it.
You provide affordable housing. Properties that provide affordable housing are subject to financial assistance which can be in the form of tax credits and other forms of financial incentive in exchange for taking in tenants of a particular income bracket. These incentives, however, tend to complicate things for the property owner.
As you can see from above, there are many instances where it is better to hire a property management company rather than hire be a hands-on landlord. And there are many instances where it might be better to have a property managing your properties on your behalf. Basically, if you do not like to deal with the dirty work associated with being a landlord, like meeting prospective tenants and managing existing ones, paying real estate taxes, and a host of other tasks, find a property manager. This is especially true if you do not want to hire an employee to be your manager.
If you search for it online, you will see that there are many property managers out there. You might want to narrow your search by typing the name of your local area plus the words "property manager". What you want to do is to get the names of at least three property management companies and research their reputation online.
Ideally, though, you should have colleagues or fellow members of your local apartment association that you can ask for references. If you are a lone wolf, though, make sure to do extra research online, firstly by going to the forums and asking the people there. We're pretty sure that if you search for it online, you will find forums that cater specifically to landlords and their needs.
Even better, search for property managers on the IREM network.The IREM stands for Institute of Real Estate Management. You could also visit the NARPM or the National Association of Residential Property Managers. You will definitely find professional property managers from there.
Before hiring anyone, though, make sure to ask about the terms and conditions as well as the management fees before entering into an agreement with a firm. One thing we know about property management firms, not all of them are created alike, and there are those specialize in large properties while there are those that specialize in managing affordable housing. Their specialization differs with their management fees, although they are usually in the range of 5 to 10 percent.
What you want to do is find the manager that specializes in the kind of property that you own.
Property management tips from: https://mwrealtyla.com |