Managing a Rental? 6 Reasons a Property Management Company Is the Way to Go
It’s not an easy choice by any means, and there are lots of factors to consider — particularly if you’re just starting out.
Are you on the fence about how to handle your new rental investment? Here are six reasons you might want to bite the bullet and hire a pro.
1. It’s less hassle
Landlording is a lot of work. You have to find tenants, prep the property, handle repairs, manage the books, and a whole lot of other tasks and to-dos too. Unless you’re ready to put in some serious hours and effort, a property manager may be the way to go.
2. It can deliver better service
Property managers are dedicated to your property. They’re in town, they have team members available around the clock (typically), and they can often respond to and help tenants faster and more effectively than a DIY landlord can — especially if you’re located in another town or out of state.
More importantly: Better service usually translates to better retention rates — and it could justify higher rents as well. So often, investing in a property manager can equal higher profits in the long run.
3. You can deduct your fees
Property management fees are considered a business expense, so you can deduct them from your taxable income come tax filing time. This reduces your total tax burden and makes covering those costs a little bit easier.
4. It frees up time for your other work
One of the best parts of hiring a property management team is it frees up your schedule. If you’ve got a full-time job, side gigs, or even just other investments that need tending to, having a pro handle your rental properties can help you better balance those.
5. They know contractors and service providers
Experienced property managers have a deep network of service providers, contractors, and other professionals that can help keep your investment properties in good shape and your tenants happy. This is particularly important if you have properties in cities you don’t live in (or are just generally unfamiliar with).
6. They can find you new tenants
Finally, some property managers will even help you market your properties and find new tenants when the need arises. This can reduce vacancy time (and the costs associated with it) and increase rental income in the long term.
Shop around for your property manager
If you do opt to hire a property management company for your rentals, make sure to shop around first. Property managers can vary quite a bit on fees, services, experience, and more, so comparing your options is key. Try to interview at least three before deciding who to go with.
Source: Nasdaq.com
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