One of the biggest decisions of a landlord is whether to hire a property management company. Property management companies can be a huge asset to a landlord. Below are some factors to help determine if hiring a property management company is right for you.
Consider hiring a property management company if:
You have lots of properties or rental units. The more rental properties you own and the more units they contain, the more you’re likely to benefit from a management company.
You don’t live near your rental property. If your rental property is located far from where you live, hiring a property management company can be invaluable in dealing with the many issues that you will not be able to handle from afar.
You’re not interested in hands-on management. Many landlords look forward to the challenge of finding good tenants and the rewards of maintaining a safe and attractive property on their own. But if you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring help to manage your property.
Your time is limited. Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if land-lording isn’t your day job. And if you prefer to spend your time growing your business, including searching for new properties, arranging financing for renovations, or changing your business structure, then a management company may be a good way to spend your money to make best use of your time.
You can afford the cost. Hiring a property management company is an attractive option if you can afford the fees. Even if it costs a little out of pocket each month to have your property managed, tax breaks may still make it sensible to hire a management company.
You’re suddenly snowed under with management tasks. If your business is growing, at some point you may find that you need a substantial amount of help to manage everything properly. At that point, it might make sense to hire a management company.
You don’t want to be an employer. If your inventory of property is growing, a property manager may make sense so as not to require you to handle payroll and deal with a multitude of legal requirements and considerations. Because a property management company would be an independent contractor for you, by using one, you’ll avoid the hassles of being an employer.
Feel free to contact me on my direct number of (972) 480-3600. I will be happy to help you answer any questions you may have.
Until next time,