As a landlord, you’ll be responsible for overseeing the day-to-day operations of your rental property, which can get quite demanding. That’s why many landlords hire a property management company to take over some of these responsibilities. If you’re considering renting out one of your properties and would like to avoid the stress that comes with being a landlord, you may want to consider hiring a property management company. If you’re not sure whether hiring a property management company is right for you, this blog post explains when it makes sense to partner with one. Keep reading to learn more about what they do, who should consider hiring one, and how to find an excellent one.
What Does a Property Management Company Do?
A property management company helps you find tenants, collects rent and performs other landlord tasks. In fact, managing rental properties is their main business. But, if you’ve decided to hire a property management company, you should know that their services don’t stop there. Below are some of their additional responsibilities:
Increasing bookings: Having a reputable PM company to take care of the marketing can go a long way for your bookings. If you’re managing a lot of properties, this can eat up a lot of your time, leaving you too busy for everything else. A property management company can help with this by finding new people to book and screening them to ensure they are a good fit for the rental property.
Screening prospective tenants: vacation renters can cost landlords a lot of money. Too many late payments and damages can financially drain you. Bad tenants can also put you at risk of a lawsuit when they damage the rental property. A property management company can screen prospective tenants and help you avoid these problems. They can check credit reports, talk to references, and even conduct a criminal background check to identify potential issues.
Managing repairs and maintenance: As a landlord, you are responsible for repairing and maintaining your rental property. If you have several properties, it may be difficult for you to stay on top of repairs. A property management company can help by managing all repairs and maintenance work. And so much more.
Is a Property management company worth it?
As you’ve seen, property managers do a lot to make sure your rental property is running smoothly. You may be wondering if all of this is worth the cost. Well, here’s what you need to know: the cost of hiring a property management company varies depending on the company and the number of services they provide. The average cost of hiring a PM company ranges from 8 to 15 percent of the gross rent. This percentage is the cost of their services, including the fee for the manager, any administrative costs, and any maintenance fees.
It does not include any taxes or insurance. Although the cost of hiring a PM company may seem like a lot, you need to remember that it covers a lot more than just the manager’s salary. The extra money you pay for their services is worth it because it saves you the time, money, and energy it would take to do everything yourself.
When Should You Consider Hiring a Property Management Company?
Homeowners who have just started renting out properties often ask the question, “When should I hire a property management company?” When you start managing your first rental property, you probably won’t know what to expect. There’s a lot of uncertainty in the beginning, and you might feel overwhelmed. Therefore, hiring a PM company at the beginning can help you get off to a good start. They can help you find tenants, collect rent, market the listing, set up accounts, and even register for the appropriate licenses.
If you have multiple rental properties. Managing multiple properties can be a big challenge for homeowners. If you have a lot of rental properties and find that you don’t have enough time, money, and energy to manage them all, you may want to hire a property management company.
At Nova, we specialize in managing multiple properties and ensure each property is fitted with the best package for success.
How much do property management companies charge?
The cost of hiring a property management company varies depending on factors such as location, the number of rental properties, the services they offer, and their experience. The average cost of hiring a PM company is between 8 and 15 percent of the gross rental income. Keep in mind, however, that the percentage they charge doesn’t include taxes or insurance. In addition, it doesn’t include the cost of repairs and maintenance, which you may want to pay for yourself. If you want to get a better idea of how much it would cost, consider booking a free consultation with one of our managers today.
How to Find a Reputable Property Management Company?
Before you start looking for a property management company, you should understand your options. There are different types of property management companies, and some specialize in certain types of properties. Here are some of your options:
Traditional PM Companies: These are nationwide companies that manage rental properties of all types. They are often called full-service PM companies. These types of companies have a large network, which helps them find tenants quickly. However, since they manage properties from all over the country, they may not be able to offer as much attention to your rental property.
National PM Companies: These companies manage properties in specific regions. If you want to hire a large company that specializes in managing properties in your area. Consider hiring a national PM company.
Local Real Estate Companies: Some real estate companies offer property management services. You may want to consider hiring a local real estate company if you’re looking for more personalized service. (P.S, if you are looking for a management company in Florida, we are here)
As you’ve read, hiring a PM company makes sense for landlords who want to focus on their core business. Property managers take care of all the day-to-day tasks that come with rental properties. When you’re just starting out or have too many properties to manage on your own, a property management company is worth the cost.