Can You Afford a Property Management Company?
Buying your first rental property and finding tenants is an exciting venture and it is the start of a very rewarding and lucrative career – if you do it right. For many landlords, the novelty quickly wears off once they realize the scope of the job. Dealing with tenants day and night, listening to complaints, driving over to fix a furnace at 2:00 a.m. and doing background checks on potential renters can all wreak havoc on the ideal of vacationing every week while the rent checks keep pouring in.
There is a simple solution to this situation so that you can go to your cottage every weekend and don’t have tenants to deal with: hire a property management company. This can give you peace of mind and save you money in the long run.
What does a property management company do?
A property management company acts as a third party, or liaison, between you and your tenants. They help find tenants, conduct background checks, handle all repair issues, make sure all maintenance and landscaping are done, and a host of other tasks. All you have to do is sit back and collect your rent checks!
Of course, as with most things in life, there are pros and cons. Here are some things to consider before deciding whether or not it’s the right decision for you.
- Gives you flexibility on where you buy: When you manage your own rental property, you need to live within a short distance so you can deal with issues when they arise. With a management company, you have more options when it comes to purchasing a rental property.
- Contract can be done to your needs: Management companies offer a full range of services, but you may not have a need for all of them (maybe you own a condo so you don’t need any landscaping done). Contracts can be customized so that you pay only for the services you need.
- They handle all of the paperwork: Whether it’s a rental application, lease agreement, eviction notice or balance sheet, a management company can handle all of the necessary paperwork for you.
- Can’t eliminate every task: While a good company can certainly lighten the load, there are going to be issues that will still require your attention, such as eviction, or deciding whether to fix that old dishwasher or replace it with a new one.
- They are not all created equal: When you’re searching for a company, make sure that you find one that is reputable and has an established business.
Of course, you’re not going to get all of these services for free; but, when you factor in the time it will take you to do all of this yourself, you may find the cost is well worth the peace of mind you’ll get in return. Before you hire a company, make sure that your monthly cash flow can handle the extra cost. Remember that you can negotiate a price with many companies to come up with a fair amount that works for both of you.
Benefit National can handle all of your property management needs. Visit their website today for more information.