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Should I hire a Property Management Company?

Depending on the circumstances property owners may choose to manage their properties themselves, or they may outsource the management responsibilities to a professional Property Management Company. Once you have invested in a rental property the responsibility can become overwhelming. For many landlords, the logical solution is to hire a Property Management Company. Is this the right decision for you? Consider the following issues before making that decision.

 

Where is the Property located? - If you have purchased a rental property near your home or place of business it will be easy for you to keep an eye on your investment. However, if your rental property is located far away you will have to travel to deal with the inevitable problems that will arise. If you are not able to check on your property frequently and easily handle problems that may arise, it may be in your best interest to hire a Property Management company.

 

Do you know how to manage a rental property? - If you do not have experience in being a landlord or Property Manager yourself, you may be in over your head. Collecting rent may sound easy, but in realty there are a lot of processes to consider. In order to manage your property profitably and correctly you need to be familiar with things such as landlord-tenant laws, eviction processes, accounting, rent collection, and maintenance remedy. If you are not familiar with these things you can quickly find your investment becoming more of a loss, and your tenants may take advantage of your inexperience.

 

Can you find good quality tenants on your own? - Experienced Property Managers are experts at finding good tenants and will handle all of the details including running criminal background and security checks, running credit reports, verifying employment, and getting previous landlord references. If you do not think you will be able to do these types of background checks, you may want to hire a Property Management Company.

 

How much experience do you have with maintenance/repairs? - If you cannot handle the maintenance yourself, do you know who to call? Finding reliable handymen and contractors can be a lengthy process. Maintenance and repairs are a significant component of being a landlord. If you question your ability to make sure the work is completed to your satisfaction and in a timely manner, you may want to hire a Property Management Company.

 

Can you handle the accounting and record keeping for your property? - From tracking rent to handling profit and loss, and an understanding of tax laws; all of these elements require special attention and can quickly become a burden, especially if you have multiple properties. If you feel accounting may be your weak point, consulting an experienced Property Management Company may be the best decision for you.

 

Are you willing to be on call 24/7? - This is an important question to answer honestly. If an emergency happens at your property, you cannot ignore it. These emergencies do not happen all the time, but when they do it is important they are addressed immediately. If managing your property yourself, you have to be willing to address these issues no matter the time of day.

 

Are you familiar with the housing regulations and property laws? - There are a multitude of laws and regulations to abide by when renting and maintaining your rental property. If you are not familiar with them a Property Management Company can help you avoid lawsuits by keeping your property up to date and in compliance with these laws.

 

Whether or not you decide to manage your investment property yourself, if you do hire a Property Management Company make sure you do your research before hiring them. Your mission is to find someone who is trustworthy and experienced. Get referrals if you can. It is best to interview several companies before deciding on which one you will hire.

Good luck on your endeavors as a real estate investor!

 

 

This article was authored by: Jennifer Jones on 1/30/2017 for tctwestproperties.com


 

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TCT West Property Management Services, LLC
2440 N. Litchfield Rd. Ste. 101
Goodyear, AZ 85395
Tel: (623) 536-6226