Here are three simple reasons to use a Property Management Company.
1. Experience – This is perhaps the most important reason. As an individual property owner, it is not possible to create the real life experience that a Property Management Company has.
With experience comes a great knowledge base. This knowledge base usually will result in good decisions as they relate to placing and managing tenants. Experience is also a plus when it comes to maintaining and keeping your property at the most profitable level.
2. Tenant Buffer –Unless you want an intimate relationship with your tenant, this is also a good reason to let a property manager handle things. If your property manager is good, they will have a clear lease and policies in place and there will be no need for you to get involved.
You will only be consulted if needed on things like large maintenance repairs, property turnovers and rent increases. Then, you will have the privilege of an objective third party to consult with on the above items.
3. Profit – Property Management Services can be a profitable choice if you apply some simple math.
We have found that on average, one property takes about 5 hours a month to manage (this is just an average – some months there will be more hours, some less). The normal management fee is $75 a month. So if you manage the property yourself, you could tell yourself that you are saving $15 an hour for 5 hours.
But what if you have another job or business where you make $40 an hour? Let’s say you take those 5 hours and invest that time into your $40 an hour endeavor. You will be effectively be making and additional $125 just by hiring a property manager (5 hrs.x $40 – $75 management fee).