Deciding whether to hire a property management company to manage the rental property might be a challenging task. Maybe you don’t have the experience of managing the rental property on your own. Maybe you had a property manager but you hadn’t had a good experience as you had and now you are wondering whether hiring a property manager is worthy for you or not.
There are mixed reviews of the experience of the landlord on hiring a property manager to manage a rental property. In this article, we will explain the Pros and Cons of property management company.
Property Management Pros and Cons
The question is whether to hire a property management company. The Pros and Cons of hiring a property management company are as follows:
Pros of Property Management Companies
Experience in the Industry
A property management company like Okc Home Reality Service has decades of experience in managing rental properties in the Oklahoma City metro area. Depending on how long they have been in the industry, they should have a defined process to manage the property. Okc Home Reality Service has a written process and checklist for everything related to the work we do.
Property management companies like Okc Home Reality Service are required to be licensed with the state. Because we are experienced license aspects helps us know the market’s ins and outs and how to price homes(renting or selling).
OKC Home Realty has dealt with tenant fights, adjustments to roommates, lease breaks, evictions, etc. For an ordinary landlord, these are items that can sometimes be daunting, especially if you have never managed property before. Fortunately, property management companies like Okc Home Reality have dealt with these issues and discovered the best ways to combat them.
We help our owners comply with Fair Housing regulations and municipal laws. Some of these rules are very basic and one could easily violate them without knowing.
Tenant Sourcing and Screening
Tenant screening is one of the time-consuming tasks. You have to go through multiple tenants while choosing a tenant for your rental property. It tasks time to source and screen the potential tenants, as well as manage property advertisements, take tenants’ calls and wait for prospective tenants to call up and view the rental unit. At the same time, tenant screening can be a task of hassle. An untrained landlord may ask questions that are inappropriate, illegal, discriminating questions or admit unsuitable tenants. A property manager has experience in handling all tenant-related issues and can save the property owner time, reduce his liabilities, and screen out undesirable tenants
Frees up Your Time
Managing the rental property is also full of hassle. You should be ready 24/7 to answer the call, be prepared to handle repairs to the rental unit. Not only for repairs, but you will also be responsible for collecting all of the rents, leasing issues, inspecting the property, etc. It’s essentially a second job.
It frees up a lot of your time to hire a property manager. You will no longer have to fix broken windows or leaking pipes. Your property management company will take care of those items.
When you employ a property manager as well, your stress levels should go down. Your property management company will deal with paperwork and tenant disputes. You can live with the reassurance that everything will be taken care of by your property manager. They t notify you for emergencies and authorizations to spend money.
Hiring a property manager should mean that, all the details are taken care of.
One of the often-overlooked benefits of hiring a property management company is the potential to get advice on your investment decisions. If you are inexperienced with buying and managing properties, they can help you evaluate the neighborhoods in that area, and may help you in finding the right properties to buy. Once you own them, they’ll give you professional advice that can help you maximize your return of investment(ROI).
Many new landlords and property owners decide to do maintenance and repairs to their properties on their own. But this may be a big mistake. You’ll get access to professional maintenance and repair personnel by partnering with a property management company.
Setting the Right Rental Rates
A good property management company will conduct a proper market analysis to determine the right rental rates for your property ensuring that you achieve the perfect balance between maintaining a low vacancy rate and maximizing your monthly income. Okc Home Reality Service always does this part of our rental listing process.
Cons of Property Management Company
The main negative point of hiring a property management company is that a property management company comes with is its fee. This service is, unsurprisingly, not free.
A property manager’s price is going to put a dent in your profit margins.
A property management firm would, on average, charge the landlord the rent for the first month and then cut the rental income by 8 to 10 percent per month. And these are only simple fees, each property management company varies in price and more secret fees may be available along the way.
To see Okc Home Reality Services pricing click here.
The property management company may not bear commited as you do to take care of the property.
Less Direct Control
You will have less direct control over day-to-day decisions. This may also be an advantage.
Recommended Article: How much do Property Managers Charge.
What Does a Property Management Company Do?
Property Management Company deals directly with prospects and tenants, saving you time and stress over over renting out your property, receiving rents, managing problems with maintenance and repair issues, responding to complaints from tenants, and even evictions. Plus, with its know-how and experience, a good management company handles your property, giving you the peace of mind that comes with knowing that your investment is in good hands.
I have already written another blog post about What Does a Property Manager Do? which includes in detail the activities that the project management company does.
It’s ultimately up to you whether you consider hiring a property management company is in line with your long-term and short-term goals. If you don’t have any experience or knowledge about property management consider hiring rental property management. If you are not able to dedicate time to rental property management, it’s better to hire a property management company.
What happens when property management changes?
When a building undergoes a management change, you don’t need to create a new lease. There is no change in contract between the tenant and the landlord.
Can a tenant break the lease if management changes?
The management company makes sure that the property is in good condition and the tenant pays rent in time. No, the tenant cannot break the lease with the change in management in normal circumstances
How do you deal with problems associated with your property management company?
Keep your communications in writing. Email is good for this. Make clear requests. If you don’t get the level of service you need, consider firing them.
How do you fire a property management company?
Depending on the contract, the landlord may need to provide written notice to the property management company. There may also be financial penalities. You will need to notify the tenants when you make a management change.