choosing between property management company and managing units on your own

December 04,2015 | Posted By Admin

 The obvious question while entering a landlord game is to decide whether to hire a property management company or manage on your own?  The answer lays in general rule of life there are positives and negatives to each strategy.Property management is not a five-finger exercise. It encompasses running a background check, collecting rents, making repairs, taking care of lease contract and everything in between. If you are still contemplating which way to go, let’s analyse both scenarios in detail:

When you should manage your own property: As it is said “nobody cares about your property as much as you do”. So you are the best person to take care of your own things if you meet all these criteria:

• Don’t have many units to look after: If you are passionate about real estate and consider this as a full-time job then it is great and feasible to handle so many units at the same time. But if you have more than 5 units, it becomes a bit difficult to manage all perfectly. 
• You are well aware about the area and properties: If you are familiar with the vicinity of your properties, then it is best suited to trust your capabilities. Being acquainted with the nearby surroundings always helps to stay a step ahead. 
• You know the inside-out of the business: A Good landlord is always armed with the knowledge and basic market savvy when he jumps into this business. Lack of awareness always invites troubles and hindrances in the process. 
• You are meticulous enough: Managing a property implies endeavours associated with marketing, showing, screening and settling in a new tenant. Knowing p’s and q’s of the business can only let you taste success. 
• You stay nearby to the units: regardless to say, if you stay within an easy reach of your properties, you can easily address tenant’s problem or get to the property in case of emergency. 
• You are well-versed with the contractors: You can save a lot of time and money when you know trustworthy contractors and how to deal with them. 

When you should hire a property management company:

• You own many units: It’s best to consider hiring professional services in case you have more than 5 units.A competent property manager always adds significant value to your investment.
• You are naïve in the profession: Property management companies are well equipped with diligent professionals who know the ropes of the business. It is wise enough to give reigns to the experts.
• You don’t have time: It can be a full-time job to manage properties on your own. If you already have so much on your plate, you will end up spoiling everything. It is a time-consuming process which demands dedication and determination.
• You stay far from units: Every tenant needs personal attention from time to time. They will have their own expectations of reaching out to you in cases of any emergency. You are also expected to address their queries and other issues. If you live away from the units, it will be a headache to do so.
• You want to emotionally distance yourself from tenants: It is natural to be attached with your units and its surroundings. A mere thought of someone putting holes in the walls or letting your flowers die may make you sad. You are also not comfortable of asking for rents every month. It is recommended to transfer your entire burden to the professional agency.

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