Posted by IKO Community Management on July 28, 2016 at 12:00 PM
Owning a rental property is easy. Managing one is hard.
The majority of landlords will agree that it’s a round-the-clock job. Whether it’s being on-call at all times in case a pipe bursts or the Internet goes out, the tasks of a landlord aren’t limited to collecting rent and towing unfamiliar cars.
Aside from handling tenant responsibilities, many landlords also have to deal with the business aspect of being a property owner. That entails finding potential tenants, upholding a high retention rate, filing tax deductions, and maintaining the property inside and out. If this sounds like a lot on your plate, let IKO Community Management share a few reasons why you should consider a property management company:
- You have a lot of properties. Whether you lease out rental units in a homeowners association-regulated neighborhood or a condominium park, too many units can be overwhelming and stressful. You may be more likely to maximize your benefits and investment by hiring a property management company (PMC).
- You don’t live near your properties. Local management companies are a great option if you live too far away. They can handle late-night complaints, be more hands-on, and offer immediate assistance.
- You have limited time. Many landlords and property owners have other day jobs while some would rather handle only daily business operations. If you fall into either of these categories, we suggest hiring a property management organization. Most companies will take care of the following:
- Checking credit reports and histories
- Drawing up lease agreements
- Billing and processing monthly rent
- Maintaining tax, legal, insurance, and mortgage records
- Performing necessary interior and exterior maintenance, or hiring and organizing quality contractors for the jobs
- Completing regular inspections
- Handling tenant complaints and breaches of lease
- Advertising and marketing your property
- Sourcing and screening potential tenants
- You want better tenants. A lot of landlords don’t have the time to directly build positive relationships with and interview their potential tenants. However, this doesn’t mean that they don’t want worthwhile tenants or a high retention rate.
To find a happy medium (and more freedom), hire a contracted PMC. Many go through a screening process to make sure they find high quality tenants who will pay on time, rent longer, put less wear and tear on the unit, and cause less overall problems.
- You’re ill suited for the management game. Many people simply own properties or rent out units because it’s an extra source of income – and there’s nothing wrong with that. However, a lot of these individuals don’t know how to properly manage these properties. They might not have prior experience, or they might hate dealing with tenant problems. Regardless, if you’re not sure the management game is for you, toss the keys to a property management organization.
- You need better outsourced connections. Property managers seem to know the best of the best when it comes to contractors. By hiring a PMC, you’ll have access to highly reviewed and fairly priced plumbing and HVAC experts, home inspectors, and service providers. This could save you money and time when it comes to maintenance, renovations, utilities, and more.
- You don’t know the law. We mentioned that one of the responsibilities at a property management organization is to file tax, legal, insurance, and mortgage records. This is because they have the experience and knowledge in state and federal law to handle those documents. They can also help by avoiding breaking discrimination laws and property damage suits.
Hiring a property manager or a company is about a leverage of time. Many investors and owners could take care of their respective units and build positive relationships with quality tenants, but they may not have the experience, means, or time to do so. If you'd like more information about hiring a PMC, click below to download our checklist of questions for your next interview.
From all of us at IKO, happy hiring!