If you are a landlord and are starting to feel overwhelmed managing your properties, it might be time to outsource to a property management company.
Let’s examine what property management companies do and what working with one could mean for you.
What do property management companies do?
Property management companies can complete all a landlord’s tasks.
Prior to the property being listed for rent, they can create a marketing plan and design marketing materials. They can also give you input on changes to the property that might make it more marketable and/or allow you to increase the rent you charge.
Once the listings are live, the property management company fields the applications, including reviewing references, background checks, income and rental history. From there, they can craft a rental contract that protects both you and the renter and offer a lease to the best candidate.
While there are tenants living at the property, the property management company handles rent collection, late fees, enforcing the terms of the contract, maintenance and more.
What property management services cost
Some property management companies offer packages that you can purchase for a flat rate or a percentage of your rental income. Other companies take an a la carte approach.
Keep in mind that property management services are considered a business expense, making them tax deductible.
Signs that you should consider using a property management company
- You own multiple rental properties.
- You own multi-unit rental properties.
- Your rental property is a significant distance from where you live.
- You want rental income without putting in a large amount of time.
- You have a full-time job or significant family commitments.
- You could benefit from hiring employees but don’t want to manage them.
In addition to working with a quality property management company, you should consider working with an experienced lawyer and insurance broker.
Leave a Reply