Although hiring a property management company has many advantages, using one can be expensive. And, even apart from the cost, relying on a property management company is not for everyone. Consider the following factors to determine if hiring a property management company would be a good decision for your business.
You should consider hiring a property management company if:
- You have lots of 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.
- 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 that you will not be able to handle from afar.
- 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.
- Your time is limited. Even if you enjoy hands-on management, you might 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 to finance for renovations, or changing your business structure, then a management company might be a good way to spend your money.
- You’re suddenly inundated with management tasks. If your business is growing, at some point you might 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.