Building a portfolio of rental properties is a rewarding investment. After all, the number of people choosing to rent rather than own continues to maintain status or grow. Studies reveal that in 2018, the growth in renters was 23.7 million and outpaced homeowners in 97 of 100 top US cities. The percentage of people choosing to rent remains at the highest it’s been since the 1960s.
On the other hand, managing your properties takes consistent, committed time – something many owners find onerous. Which leads to the big question: When do I need a property management company, and what will they do for me?
Property management companies specialize in the rental market. In a nutshell, they:
- Maintain your property, taking care of maintenance, repair issues, and updates.
- Ensure your properties and rental agreements are legally compliant.
- Market your property when vacancies arise.
- Screen prospects and find reliable tenants, keeping your properties full.
- Process lease agreements, collect rent, and respond to tenant complaints.
- Respond promptly to emergencies.
- Manage the eviction process, should the need arise.
When do I need a property management company? That depends on several factors:
How many properties do I own? While managing one or two properties may be doable, the more you own, the more likely a property management company will be a wise choice.
Where are my properties located? If your rental properties are located a distance away (i.e., in a vacation hotspot), travel time itself may merit a contract with a property management company.
Did I purchase them strictly as an investment, or do I thrive on being a landlord? If you thoroughly enjoy being a landlord, taking care of people’s needs, etc. go for it. But, on the other hand, if you bought the property primarily as an investment and have neither time nor interest to be an actively involved landlord, then choosing a property management company is a necessary part of the equation.
Do I have enough time to manage my properties well? Ok, so you only own one or two properties in your vicinity and you enjoy land-lording, but your occupation and other commitments require all your time, then property management may still be the best option.
Owning rental properties is a wise investment in your future, but it requires time and expertise. A property management company provides not only the time and expertise, but the peace of mind that everything will be kept running smoothly. It isn’t free, of course, but whether you pay a flat rate or a percentage fee, the key isn’t on how much they cost. It’s about how much they help you make by keeping your properties full and running smoothly.
All property management companies are not created equal. Choosing the best fit for you is essential. In our next blog, Part II, we will share helpful tips on knowing which company fits your needs.
Here at Rentals America, we treat your home as our own. We offer a full range of property management services to fit your needs as a landlord or homeowner. We tailor our services to ensure that you have the highest level of service for your home. Contact us today.
