Many investors try to do it all themselves: they collect the rent, remodel the house, take care of the property, and sadly, in some cases, go through the eviction process. They are reluctant to hire a property management company because they see it as an extra unnecessary cost. And before they know it, they are overload, overwhelmed, and battered with a host of unforeseen costs.
What most new investors don’t realize at first is that becoming a homeowner is much more than just a passive income; in fact, it is a full time job.
What does a property manager does?
Property management is the supervision of residential, commercial, and / or industrial real estate, including apartments, detached houses, condominium units, and shopping centers.
It generally involves the management of assets that are owned by another party or entity. The property manager acts on behalf of the owner to preserve the property’s value while generating income.
Reasons to Hire a Property Management Company
Although hiring a property management company has many advantages, using one can be expensive. And cost aside, relying on a property management company isn’t for everyone.
Consider the following factors to determine whether hiring the services of this type of company would be a good decision for you.
You have a lot of properties or rental units
The more rental properties you own and the more issues they contain, and the more likely you are to benefit from a management company.
You do not live near your rental property
If your living overseas, hiring a company to manage your property can be invaluable in dealing with the many problems that you won’t be able to handle from afar.
You are not interested in practical management
Many homeowners look forward to the challenge of finding good tenants and the rewards of maintaining a safe and attractive property on your own. But if you consider a rental property 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 have no time
Even if you enjoy hands-on management, you may not have a lot of time to spend on your business, especially if it’s not your day job.
And if you prefer to spend your time growing your business, including finding new properties, arranging financing for renovations, or changing the structure of your business, then a management company can be a good way to spend your money. .
You can afford it
Hiring a management company is an attractive option if you can afford the fees.
When interviewing companies, expect to hear quotes that range from 5% to 10% of what you collect in rental income (standard in Vietnam).
Suddenly management tasks are too much for you
If your business is growing, at some point you may find that you need a great deal of help to manage everything properly. At this 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 you with your property, it makes you an employer. You will have to handle payroll and deal with a number of other legal requirements and considerations.
But, because a property management company is not your employee (it is an independent contractor), and neither are the people who work for the company, by using one you avoid the hassles of being an employer.
Benefits of a Management Company
Proven strategies for managing residents
Responding to tenant requests is one of the most tedious parts of owning a rental property. Residents can be picky, and some expect a lot, even too much, from their landlords.
But it’s key that you keep them happy if you want them to stay. A property management firm can accommodate resident requests to help ensure customer satisfaction.
Timely rental payments
Many property management companies offer different follow up strategies to make sure your tenants pay on time.
Most property management companies handle maintenance issues for you, from minor repairs to preventative maintenance.
Not only will current resident complaints be handled promptly, but future problems will be minimized or avoided entirely, protecting your long-term investment in the property.
Effective Marketing and Advertising
Property management professionals have vast experience on the subject. They know where to market your properties to attract the right audience. And they have the experience to create a compelling ad guarantee.
Your experience offers a significant competitive advantage to fill your units and reduce vacancies.