Do You Need a Property Management Company?

Yes or No

Being a property owner leaves you wondering whether you should hand over the management to a property management company or doing it for yourself. The truth is, not every property owner in Florida requires a property manager. But in case your property falls under the category that requires management, then the choice will be very helpful. In case you are not sure whether or not to hire a property management company, the following questions will assist you in deciding.

What is the distance between your rentals property and your home?

The distance between your residential home and rental property determines how effectively you can manage your property. Let’s say for instance you are based in Illinois while you have property in Florida. Managing the property will be almost impossible and thinking that you can do it will only lead to stress and poorly managed property. In addition, it will be very hard for you to find tenants which means you will be short of revenue. If you count the amount of time spent traveling to see the property and the cost incurred along the way, you will realize it is costly. In such case, hiring a property management company comes in handy.

 

What is the size of your property?

You might perfectly manage your property if you only have a few units. However, if the number of units increases, so are the responsibilities. These responsibilities mostly come in terms of tenant complaints, repair, and maintenance issue, and finding occupants for the vacant rooms. Management becomes complicated if the units are distributed across multiple properties as you have to spare enough time to manage cash flow. Hiring a property management company will save you the stress that comes with all these responsibilities.

 

Do you possess any knowledge of property management?

Being an investor in real estate doesn’t necessarily mean you need to have experience in property management. You might be tempted to think that you will learn as you go but at the end of the day, it is very expensive. Instead of wasting too much time and making multiple mistakes not to forget stressing your brains, use the easy way out and hire an experienced property management company.

The right property manager reads the fair housing laws on your behalf and helps you to implement hence avoid unnecessary lawsuits. He also helps you in hiring the right contractors in case there is a part of the property that requires repair. The only thing you need to be cautious about is hiring the right manager as hiring the wrong one can see you saying goodbye to your property.

 

Are in a position to hire a property management company?

Property managers charge you to help you manage your property. In most cases, the property management company will require about 4% to 10% of the growth monthly income collected from the property. If you are renting a single family home, then you will pay almost 10% while several units may cost you from 4% to 7%. Before committing yourself to a property manager, you need to assess your funds and ensure that you can afford to hire one. There are some property managers who will charge you for finding tenants. Be sure to set all expenses straight before signing a deal with a manager.

 

Will you be comfortable with giving up control?

Hiring a property manager gives him control of everything including collecting rent and filing taxes for the property. You need to ask yourself whether you will be comfortable with giving him that much control. While looking for a property manager, he is likely to provide you with certifications to prove that he is the right person for the job. However, before trusting their experience, ask yourself whether he will have your property’s good interest at heart.

 

Are you available to handle management of your property?

The success of your real estate investment depends on how well the property is managed. If you have a full-time job, you may never have enough time to check on the property. Instead of stressing yourself trying to balance between your day job and managing the property, consider seeking the assistance of a manager. In short, a property manager frees you to handle other obligations that bring you money or concentrate your attention on other investments.

 

What’s your tolerance level for dealing with tenants?

Handlin tenants is not an easy task as you will find yourself dealing with all types of personalities and characters. If you feel that receiving complaints, collecting rent, handling maintenance, and exercising eviction are getting the best of you, then you should consider a property manager. The property managers are skilled in handling people of all personalities and since they have experience in the field, they carry out proper tenant screening before letting some stressing tenant into your property.