Managing a rental property is not an easy task. It takes a lot of work, time, and effort. You have to manage several things at the same time to make your business successful. These include maintenance, repairs, tenant screening, documentation, and rent collection. Handling all these tasks simultaneously could be overwhelming. So, hiring a property manager might seem like a good idea. In this article, we will be discussing the advantages and disadvantages of hiring a property management company in South Florida.
Pros of Hiring a Property Manager
Following are some of the advantages of hiring a property manager:
Marketing is one of the initial steps in any business. If you are new to the field, going through the marketing process could be a bit overwhelming. So hiring an expert is always a good idea to market your property professionally. As property managers are trained, they know how exactly the property should be marketed. They are able to create some exceptional and attractive ads that grab tenants’ attraction.
Everything goes According to Law
People who are new to the real-estate business might not be fully aware of the laws related to this industry. A professional can save you from any future hassle. Property managers know how to deal with law-breaks like tenant disputes, roommate changes, lease breaks, evictions, and others. It might be difficult for you to deal with such issues especially if you are new to the field.
Great Dealing with Tenants
Not every tenant you choose might be the best. Some tenants create several problems, that is; they break the community’s laws, or damage the property and leave you anxious about how to deal with them. Property managers know really well how to deal with such tenants. They take care of the matters while staying on legal premises.
In addition to that, if your real estate business is your passive source of income, it might not be easy for you to give your whole attention to it because of your busy schedule. This way you might end up offending your tenants by not responding to their complaints on time. However, by hiring a property manager you can save yourself from such problems.
No More Heaps of Paperwork
Real-estate business demands a lot from you as a property owner. You have to deal with several things and have to be on call every time. However, by hiring a professional you can lessen a lot of stress. A property manager will handle the following things for you:
- Market and promote the property
- Evaluate and screen potential tenants
- Handle administering a lease agreement
- Collect rent payments on behalf of the property owner
- Listen to complaints and manage things accordingly
A property expert also saves you a lot of your time to focus on other things. If the rental business is your secondary source of income, then you will be able to earn a good profit without diverting your attention from your other job. If it is your primary income, then hiring a manager will still be useful as he will guide you about growing the business.
Shorter Vacancy Period
A landlord has to face a loss in his business if the property remains empty for a long time. A real-estate expert is skilled in finding new tenants and filling the vacancy right after a tenant leaves the property. They perform the required tasks like, preparing the property for the next tenant, determining the rent rate, and marketing the property quite effectively.
Cons of Hiring a Property Manager
Where there are several benefits of hiring a professional, you might have to face the following difficulties you might face:
High expenses are one of the biggest drawbacks of hiring a property manager. When you are at the initial stages of your business, it might be hard to afford a professional to manage your property because some companies not only demand 4-12%, but also other costs. These include vacancy fee, set-up fee, and leasing fee, which is quite a lot, especially for a beginner. You might also have to be careful about unexpected costs like cancellation fees, renewal fees extra maintenance fees, etc.
Risk is involved
Risk is involved when you hire a third party to take care of all the property matters. Like any other business, you can’t trust anybody blindly. You still have to keep a keen observation regarding what’s happening with your property.
How to Hire a Property Manager
There are the following factors to consider when you plan to hire a property manager:
Know-how of your Property Type
It is important that you hire a manager who has experience with the type of your property. A person who knows the worth of your property will recognize the value your property holds and will decide the rent accordingly.
Know if you Really Need Help
As hiring a property expert might cost you a bit too much, it is important to consider if you really need him.
Here are following some of the questions you should ask yourself before hiring a property manager:
- If you are short on time?
- How far is my rental property? (if it is near your house, you can probably control the matters yourself)
- How many properties are needed to be managed?
- What is the tenant retention rate? (if it is too low you should hire the manager immediately)
Know their Screening Process
It is essential to research a manager’s screening process. The best property managers are ones who screen tenants by conducting background, credit, and reference checks. It’s significant to find property managers who are professional, reputable, and well-established to keep both the landlord and tenants happy.
Other Factors to Look for in a Property Manager
- His Communication Skills
- Which Organization does he belong to
- Marketing properties online
- Managing finances
- Managing contractors
- Working professionally with tenants and vendors
A great property management company can easily take your business to great heights. Despite the fact that a manager takes responsibility for your property, you still need to keep an eye on your property. If you are in need of a property management company that could help you going extra mile for your tenant, contact Lamar G Property On Us, today. As a friendly management company, they know how to increase tenant satisfaction.