These 5 benefits of a property manager versus self-property management may surprise you
Before the ink dries on the purchase agreement, have you considered the pros and cons of self-property management over the benefits of a property manager? Deciding which method is better widely varies on personal goals, time availability, and financial considerations. Depending on the circumstances, the benefits of hiring a property management company versus self-management may involve less hassle than you think.
The difference between self-property management and the benefits of hiring a property management company
Using a property management company calls for ongoing investment, typically a percentage of the monthly rent or a flat fee, and can affect your overall profitability. In return, the property management company collects rent, handles tenant evictions, and schedules appointments with contractors or other repair services for property maintenance. To avoid the additional costs, many investors self-manage their properties in an effort to keep as many dollars in their pockets as possible. Unfortunately, the trade-off of time over perceived savings can be unintentionally costly in the long run.
What are the benefits of a property manager?
The first benefit of hiring a property management company is time savings. Time is a commodity most real estate investors can’t afford to waste. Handing over the headaches of property maintenance, chasing down rent, handling tenant complaints, and other tedious, time-consuming tasks associated with owning property to another professional alleviates stress. Doing so frees up time to focus on marketing, networking, property acquisition, and other areas vital to your real estate business.
- 1) Network of Contacts: Property management companies often have respectable relationships with vendors, contractors, and maintenance professionals established over time.
- 2) Avoid potential legal troubles: Property management companies know the ins and out of tenant-landlord law, housing policies, and other legal-related matters about real estate. They also assume responsibility for lawyer fees and expenses associated with property damage.
- 3) Professional expertise: Good property managers understand the ins and outs of managing a property, including predicting unforeseen circumstances that can arise. They also can assist with marketing rental properties and possess insight on the best way to photograph, list and promote to ensure a successfully rented property.
- 4) Acquire qualified tenants: Part of a property management company’s knowledge base requires being aware of the local real estate market. The same understanding is applicable to screening and qualifying the perfect rental candidates. Routinely scouring hundreds of rental applications trains the eye for red flags that separate a good tenant from a potentially problematic one. Spotting red flags upfront and removing this type of tenant from the candidate pool early on protects a property owner’s investment.
- 5) Reduce tenant turnover rates: Keeping renters happy is an underrated ability of a skilled property manager. Tenants that love where they live and experience quality customer service addressing their concerns are more likely to stay and are less likely to object to rental price increases.
Besides an immediate return on investment, having more control over tenant selection is one advantage of self-property management. There is also less risk with mismanagement of an investment property when managing it yourself. Team LBR Real Estate understands the need to maximize and protect your investment. We combine over a decade of property management experience with our unmatched network of reliable vendors and results-driven customer service to provide an affordable, turn-key service like no other in metro Detroit. Ask us how! Contact Team LBR Real Estate today for a free consultation.