Property management companies are third parties that take responsibility for managing and maintaining real estate property on behalf of a landlord. Some people would argue that a property management company is essential for anyone investing in real estate today. However, not everyone is convinced, and there are still many people who prefer to try and go it alone.
Should you hire a property management company to help you manage the properties that you invest in on a day-to-day basis, or can your money be better spent elsewhere? Let’s take a look at some of the benefits a property management company can offer you.
What Do Property Management Companies Do?
A property management company will handle the day-to-day management of your real estate properties. This means that if the property is vacant, they can find the right tenants for you. Or, if there are tenants in the property, they will collect rent, sign leases, and take care of repairs and other essential maintenance.
Obviously, this means that you have a lot less to worry about and a lot less on your plate. If you have a large number of properties to oversee, then a property management company can be significantly more economical as well as making your life easier in general.
Some real estate investors have found that their fortunes transformed after they hired a property management company, so it might just be one of the best investments that you’ll ever make.
What Do Individual Property Managers Do?
Each individual property manager within the business will take on a range of duties for the properties that they oversee. The multifaceted role that individual property managers fulfill makes them a very valuable asset to any real estate investor.
First and foremost, they will oversee rent collection for you. This means that while you will have to spend some money in the immediate future in order to secure a property management company’s services, once they are overseeing your properties, you can then sit back and wait for the money to roll in.
Your property manager will also oversee all of the routine maintenance and repair work that needs to be done on a property. Landlords are responsible for ensuring that the properties they rent out to their tenants are up to standard, and that means conducting any necessary repairs promptly. This work can take up a significant amount of a landlord’s time, especially if they have multiple properties to oversee.
A property manager will give you great peace of mind with regard to the state of your properties. You won’t have to worry about responding to requests for repairs or reports of damage; you can leave it in the hands of your property manager.
If one of your tenants does default on their rent payments and you aren’t able to find a suitable remedy, a property manager can help you out here as well. The process of reclaiming rent that is owed to you, or evicting someone who outright refuses to pay is rarely smooth and straightforward. Tenants tend to put up a fight, even when they are in the wrong. This can be an expensive and lengthy process and is exhausting for any landlord. Having a property management business handle it is preferable for most landlords.
It is also worth noting that a property management company makes defaults less likely because they have experience in finding the right tenants.
Is It Worth the Cost?
As with any investment decision, only you can truly know whether an investment is worthwhile or not. However, you should view hiring a property management company as an investment rather than an expenditure. Take a business like BGM, that offers property management in the Bay Area – you can find details about the property management company here. Among the services that they can provide is a 24/7 on-call maintenance service and an impressive 1% eviction rate. With a business like this overseeing your day to day affairs, you are free to focus on the bigger picture.
A property management company is a smart investment for many real estate investors. You can’t put a price on peace of mind, especially in the real estate game. Anyone overseeing multiple rental properties should give serious thought to hiring property managers.