Can I hire someone to manage my rental property?
This is a common query among landlords seeking to improve the effectiveness of their property management operations. Owning rental properties can be advantageous, but it also needs time and skills to perform numerous chores successfully.
There are numerous advantages to employing a property management company. To save the hustle, we’ve gathered those advantages and disadvantages, as well as reasons for hiring a property management company and helpful hints for hiring a reputable property management company and comprehending the associated charges.
Whether you're a seasoned landlord or a first-time investor, understanding how to assign responsibilities and enhance the performance of your rental property can make or break your investment.
Read on to get your answer to the question, “Can I hire someone to manage my rental property?”
While hiring a property management company offers numerous benefits, it also comes with a cost and may not be the right choice for everyone. Consider the option of hiring a property management company if:
Managing several rental properties and units can be overwhelming, making a property management company a valuable asset.
If your rental property is located far from your residence, a management company can handle issues that are difficult to manage from a distance. Sometimes, state laws may even require hiring an in-state management company.
Hiring a property management company can be ideal if you view your rental property solely as an investment and prefer minimal involvement in day-to-day management.
If being a landlord is not your primary occupation and you have limited time to manage your properties, a management company can take the burden off your shoulders.
A management company can be a worthwhile investment if you can afford the fees, which typically range between 5% and 10% of the collected rent revenue.
As your rental business expands, you may need professional help to manage the increasing workload effectively.
Hiring a management company allows you to avoid the complexities of being an employer, including payroll and legal obligations.
If your property is part of an affordable housing program with specific rules and regulations, a property management company experienced in handling such programs can ensure compliance and maintain financial assistance.
Hiring a property management company has several advantages, the most important of which is the desire for an experienced professional who can save landlords time by resolving various rental-related concerns.
Property management companies are more affordable than perceived, offering value by saving landlords time and hassle. Outsourcing to them is wise unless you are experienced in property management.
Property management companies act as an on-call service, handling maintenance issues 24/7, including heating, plumbing, and electrical problems. They maintain detailed records and offer convenience.
Property managers are meticulous in task delegation, expertly drafting leases, and screening tenants for compliance with laws like Meghan's Law and other regulations.
Top-notch property managers handle property showings and represent owners in court when needed. They serve as the primary point of contact for tenant concerns, ensuring smooth operations and minimizing vacancies.
While professional property management has various advantages, some landlords may hesitate to leave their rental units to a third party due to control and financial concerns.
Property management fees can range from 6% to 12% of the rent, impacting rental cash flow and potentially reducing profitability, especially for landlords with a few properties.
Property management companies must adhere to state landlord laws, limiting flexibility in tenant selection. They may approve tenants; landlords would decline, or vice versa.
Full-time, salaried employees and business overhead costs may lead to more expensive maintenance fees than independent contractors.
Landlords who prefer hands-on management may find property management companies limiting their control over rental processes, from tenant selection to maintenance.
Some management companies may not be well-versed in modern online rental marketing, resorting to outdated methods like local listings or newspaper ads, potentially affecting the speed and quality of tenant attraction.
Once you've carefully weighed the pros and cons of hiring a property management company and decided to entrust your rental business to a property manager, the next crucial step is finding the right company. Selecting a reliable property management company is akin to finding a good tenant, as they will handle your property and profits on your behalf.
Depending on your location, you may have numerous companies to choose from. Begin by narrowing down your options through reviews on Yelp and Angie’s List. Conduct a Google search to find additional reviews. Shortlist the best-rated companies for further evaluation.
When evaluating potential property management companies, consider the following critical criteria:
Inquire about the number of units the company manages and the staff dedicated to their management. Larger companies may offer more resources but could provide less personalized attention. On the other hand, smaller "boutique-sized" management companies may offer more individualized services.
Ensure that routine property inspections are part of the property management agreement. Regular inspections help maintain the property's condition and identify issues early on.
Ask about the property management company's tenant screening process. A reputable company should have a comprehensive screening system to ensure reliable tenants.
Discuss and clarify the fee structure for maintenance and other costs. Put all agreements in writing to avoid misunderstandings. Determine the threshold for the property manager's authority to spend on incidental maintenance or repairs and set a comfortable cap, typically ranging from $250 to $500.
Most property management companies typically apply a monthly fee of 8% to 12% of the collected monthly rent. For instance, if your rental property generates $1,200 monthly rent, the property management fee would amount to $120, assuming an average fee of 10%.
We hope you got your query, “Can I hire someone to manage my rental property?” resolved. Managing a property can be a DIY task, but hiring a property management company saves you from various hassles.
If you’re also a landlord or an investor looking for someone to manage your property, contact
Guardian Property Management today!
The highest number of property management companies in any state is 54,173 in California. In the United States, there are 48.2 million units in around 20 million rental houses. A property manager is usually hired by 51% of owners of rental properties.
Property management companies often charge a monthly fee ranging from 8% to 12% of the rent received. For example, if your rental property earns $1,200 per month in rent, the property management charge will most likely be between $96 and $144.
A property management company enters into specific leases or transfer arrangements, accepting responsibility for administering the service fee and providing management and maintenance services at the development. A typical lease involves two or three parties, known as bi-partite or tri-partite leases.
