Posted on: 12 March 2019
If you only have a single property, you may be wondering if it's worth it to pay for a property management company. But even if you only have a single rental, a property management company can be extraordinarily beneficial in a number of ways. In fact, property management companies are often better for "hobbyist" landlords. Here's why.
Property Management Companies Charge a Percentage
It doesn't hurt you to have only a single property, because a management company just charges a percentage of rent. This is true if you have one property or a hundred properties. Further, many management companies offer a rent guarantee. They will guarantee that your rental will remain rented throughout the year. That's huge if you've had problems filling your rental in the past.
Property Management Companies Have an Entire Team
You may not be able to afford a legal team, maintenance team, or accounting team, but your property management company can. They have the advantage of scale. When you interact with a management company, you get the help of a full inventory of experienced professionals for a fairly low rate. This can help you avoid costly issues with your rental in the future, such as legal problems or maintenance problems.
Property Management Companies Are Skilled in Finding Tenants
With background checks and other processes, property management companies can find good tenants rather than tenants likely to damage your property or be evicted. As a landlord, an eviction is the worst possible situation for you; it can tie up your property for months, and you may never actually recover the money. Property management companies have the experience needed to avoid this painful situation.
Property Management Companies Free Your Time
If you'd ever like to have more than one property, you can do so with a management company. By freeing up your time, the management company lets you focus on other things, such as finding and purchasing new properties. You can also simply allocate that time to doing what you love, such as hobbies or being with your family.
A property management company can give you more information on what they can do for you. Many companies manage dozens of smaller units. They already have processes in place to make this efficient, so they won't be dissuaded by the fact that you have only a single property. And, who knows, with their help building up your profit, you may be able to purchase new properties in no time at all.Share