Do You Need a Property Management Company?
Property management services can minimize your risks, reduce inconveniences, maximize rental income, and eliminate the hassles of everyday maintenance tasks and give you peace of mind in knowing that the value of your property is being professionally maintained.
Whether you are a private homeowner who is relocating, someone with property in a resort area, an individual with several investment properties, our professional team has the skill and experience to manage your property efficiently, effectively, and most importantly, maximizing your profits.
You should consider hiring a property management company if:
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. If this is your situation you may be interested in our “A La Carte Management” instead of full property management.
You have multiple 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. Some companies, including Innovative Property Solutions, offer multiple home discounts.
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 you will not be able to handle from afar.
Your time is limited. Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if landlording 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. If this is your situation, you may be interested in our “A La Carte Management” instead of full service property management.
You can afford the cost. Hiring a property management company is an attractive option if you can afford the fees. When interviewing companies, expect to hear quotes ranging between 5% and 10% of what you collect in rent revenue. If it’s a down market and you’re able to manage things yourself (or with the help of a resident manager or other employees), you may want to keep doing so until the market turns around.
You’re suddenly inundated 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 you hire a resident manager or other employees to help with your property, you become an employer. You’ll have to handle payroll and deal with a host of other legal requirements and considerations. But, because a property management company isn’t your employee (it’s an independent contractor), and neither are the people who work for the company, by using one you avoid the hassles of being an employer.
Your property is part of an affordable housing program. If you participate in an affordable housing program, things can get complicated. Usually, in these programs the landlord receives financial assistance, which may be in the form of a grant, low-interest loan, or tax credits, in return for agreeing to rent at least part of the property to tenants earning below a certain income level. In order to continue receiving the assistance, the landlord must comply with a complicated set of rules. With so much at stake, it’s often worth hiring a property management company that has expertise and experience with the particular housing program in question.