Traditionally, most property owners manage their properties on their own or with the help of their employees. There comes a time when property owners need more help, and that’s when they turn to a Property Management Company.
The decision to sign up with a Property Management Company is a major decision for any property owner.
If you are property owner, carefully review the points below to determine whether hiring a Property Management Company is the right move for you or your business.
What Does a Property Management Company Do?
A Property Management Company works at the behest and on the behalf of the property owner. They directly liaise with prospective clients and existing tenants, thus saving time and worry over activities involving marketing rentals, collecting rent, handling maintenance & repair issues, tending to tenant complaints, and even pursuing tenant evictions.
The Property Management Company brings its know-how and experience to the property, thereby giving the owner peace of mind knowing the asset is being managed well and is in safe hands.
You Consider Hiring a Property Management Company if…….
You have several properties / rental units. The more properties you own the more time you’re likely to spend managing the properties. You might find yourself inundated with various disciplines of work for which you may not have time or the aptitude.
You don’t live near your rental property. If your property is at a distant proximity from your home or work place, dealing with property related issues might be challenging as there may be such issues that you cannot handle from afar.
You’re not interested in hands-on management. If you view your property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your property, then you would need someone else to look after the operational aspects of the property for you.
Your time is limited. Being an owner, you may enjoy the hands-on management of your property, however, this might be at the cost of other important obligations – like family or work / business. You may not be in a position to manage everything given the amount of time you have.
You can afford the cost. Hiring a Property Management Company is an attractive option and the fees range between 5-10 % of the gross rent you collect per year. These fees have been relatively steady for many years.
You’re suddenly inundated with tasks. As a property owner, you may find that in a particular time in life, when your complete attention is required at work or with your family, inopportunely you get inundated with tasks pertaining to the property.
How to Find a Good Property Management Company?
If you decide to hire a property management company, use caution in selecting one. Here’s how:
- Don’t go by big name alone
- Hire companies that have new and innovative ideas
- Choose companies that are focused in giving you value solutions
- Always hire companies that become your long term partners rather than vendors.
Author of this article is Mr.Tejas Ubale, Founder & Managing Partner, One Stop Solutions, OS2