Hiring A Property Management Company: Is it Worth it?
Owning rental property can be a great investment. But you might soon realize that rental property isn’t a passive investment.
In fact, it can be very time-intensive. It requires a lot of care and a lot of time. If the rental property isn’t managed properly, margins can diminish… quickly.
That can add up to a lot of work.
All of these necessities can feel too much, or you might not even know you need them. A property management company balances everything.
But is hiring a property management company worth it?
We know your goal is to make more money, not less. That’s why we put together a quick list of the most important things to consider.
Unsure about managing your rental property? Read on, and we’ll help.
What Property Management Companies Do
Property management companies monitor, market, and maintain your rental property. Think of hiring a property manager like hiring an employee.
You might do this for one of a few reasons:
- You have too much work on your hands to get done yourself
- You want to delineate some of that work to free time and energy for other use
- Someone who has more experience and resources could increase your long-term profit
Property management companies don’t only regulate lease agreements and find tenants. The right property manager will:
- Make educated choices managing property maintenance
- Occupy properties with qualified tenants
- Stay up to date on local and federal laws and regulations
- Utilize their connections to get you the most out of your property
And they’ll make these decisions with the long-term in mind, not just to get them out of the way.
Rental property maintenance covers a lot of ground. Some important scheduled maintenance tasks include:
- Checking for leaks
- Monitoring water damage
- Testing Smoke Detectors
- Yard work, like pruning trees
- Dealing with heating and cooling systems
- Pest control
The list goes on. Preventative maintenance is important to keep your property in its best condition.
Hiring a property management company ensures your property the best care. They deal with any new maintenance issues quickly and conscientiously. A property manager ensures no unnecessary, new problems arise. Because maintenance problems won’t go untreated.
How do they do this? By being in the business for a while, a property manager provides:
- An already-in-place-network to handle all immediate emergency services
- Top-tier contacts with the best prices for any renovations you might have in mind
- Reliable vendors they already have relationships with
- Knowledge of the most competitive prices
This keeps your rental property in top shape. And it keeps it on the market for longer, always in its most profitable state.
Strong Tenant Relationships
One of the most important decisions you can make for your property is placing the right tenant.
If you’re on your own trying to find a tenant, you have to filter and respond to hundreds of listing responses. Set up times to show the property. Go through the application process. And finally, hope you made the right decision.
The time, energy, and emails add up. It can get tiresome pretty quickly.
A property manager ensures the best tenant occupant by:
- Using their experienced marketing strategy to attract the largest pool of tenants
- Properly screening prospective tenants, ensuring the most qualified applicant
- Maintaining accessibility throughout the tenant’s lease
- Ensuring a positive relationship with tenants
Making sure tenants have the best experience and care is how to get tenants to renew their leases.
Laws, Regulations, and Minimized Liability
The housing market is a highly regulated industry. And it doesn’t look like those regulations will ease up any time soon.
Property owners must maintain any local and federal laws and regulations. There’s already a lot to know at the federal level which affects every state. Add on state regulations and local ordinances, and it can get overwhelming.
State and local regulations are what make the housing market’s policy more confusing. A property management company knows everything on your behalf. They have the experience, working knowledge, and network readily available.
If you own rental real estate out of state or even out of town, it can get tricky. But it doesn’t get tricky if you have a reliable property management company. This is where your investment can really become passive and lucrative.
And it’s their day in and day out, so they want to be as educated in their field as possible. And that leaves you to stick to the knowledge of what you’d rather spend more time learning about.
Hiring A Property Management Company Helps
If you own a rental property, by design you’re trying to make the most out of your investment.
In 2021, California’s real estate market is anticipated to grow even more. In January, California had its largest increase in property sales and pricing in seventeen years.
But that growth isn’t a right of passage. In fact, it takes a lot of time, effort, and experience. Hiring a property management company helps you get the most out of your investment. At the time, all the time, and in the long term for the longest time possible.
But we want you to be as comfortable and confident in the management of your rental property. Want to be sure about hiring a property manager or not? Check out some reviews from people who had to make this decision, too.