One of the biggest decisions you will make as a co-op board is whether you should hire a property management company. Some boards manage their buildings efficiently on their own, while others need more assistance. The factors discussed below will help you and your fellow board members decide if hiring a management company is the right decision to protect your investment.
Some duties a property management company can fulfill are:
- Dealing directly with prospects and tenants
- Marketing available properties
- Collecting rent
- Handling maintenance and repair issues
- Responding to tenant complaints
- Pursuing evictions
In addition to these duties, a management company such as All Area Realty Services, uses their expert experience and knowledge to guide you through protecting and maximizing your investment.
When Should You Hire a Property Management Company?
Hiring a property management company is not right for every co-op board. Hiring a management company has advantages and disadvantages depending on your board's unique needs. Use the following listed factors to determine if hiring a management company is the right decision for your board.
You should consider hiring a property management company if:
There are a lot of units in the building. The more units you have the more you will benefit from a management company.
- You’re not interested in the day-to-day aspects of management. If you find being hands-on in management mundane or stressful, consider hiring a management company.
- You don’t have the time to devote to the demands of managing the building. If you already have a full-time job you may not have the time to devote managing the building. In many cases, managing can be a full-time job in itself.
- You can afford the cost.
- You are overwhelmed with management tasks. If the daily tasks of management are becoming stressful and overwhelming it may be time to hire help.
- You don’t want to be an employer. A management company is an independent contractor, so you don't have to worry about the burden of being an employer.
How to Find a Good Property Management Company
Finding a trusted management company can seem overwhelming at first, but here are a few tips to selecting the right one:
- Ask for recommendations from colleagues and your local apartment association.
- Search professional directories on the Internet.
- Interview companies thoroughly making sure all your questions are answered.
Handing over the reins to your investment isn’t an easy decision to make. But if you resonated with any of the factors listed above it may be time to hire a property management company. A management company can help give you the maximum return on your real estate investment and alleviate any undue stress.