So you've decided that you want to start investing in real estate and to become a landlord. Should you hire a reliable property management company or manage the rental property yourself? Here are some things to think about to help in your decision.
Most likely, the property will need some renovation. You will need to either fix it yourself or get bids, shop for materials and make decisions. It will probably cost more money and take longer than you think. A preferred property management company will have contractors and can oversee the work which will free up your time.
After the renovations are completed, now you need to find tenants to rent the property. Finding tenants for a property is a time consuming task and once you find the tenants, you need to fix their issues, keep good relations with them and take good care of the property. This is ideal if you have a ton of free time to invest in being a full time landlord. If you do not have a lot of free time, then a complete property management company is the way to go.
A preferred property management company has the resources to place rental ads, respond to emails, interview potential tenants and can show the potential tenants the property. Also, the property management company can run credit checks, review the applications, comply with state and federal housing laws, call the employment and past landlord references.
If the tenant is a quality tenant, then the rental management company can prepare the lease, negotiate the terms, meet with the tenant to review the lease and sign the lease, and have someone present for move-in. It is a lot of work.
Now the tenant is living in your rental and everything is going smooth. However, there will be issues that need to be fixed. If you employ a reliable property management company then it is a lot less stress on you. A reliable property management company will ensure that your tenants are treated with respect and that their issues will be solved with nominal involvement on your part. A preferred property management company will handle all major issues as well.
Finding which property management company to hire is really important. Interview a few, call references, get copies of their insurance. Once you decide which one to hire, nurture a friendly but professional relationship with your property manager. If you have a good working relationship with your preferred property management company then they will be more likely to keep you abreast of all the developments at your investment property.
If you do not have much free time, then a realty property management company could be a good idea. You can still be involved while keeping your ROI high and income coming in.