Pros and Cons of Using Property Management

 

Owners of investment rental properties face a decision whether to manage their rentals themselves or to hire a professional property management company. The advantages and disadvantages are multifaceted, so let’s analyze them.

Direct vs. indirect control of property management

Owning one or two rental properties can be a profitable long-term investment. It entails a set of responsibilities that the owner must juggle. When the owner has only a small number of properties, this may be doable, but as the portfolio grows, many owners hire a property management service.

Responsibilities for rental property owners include:

• Listing and advertising available properties
• Interviewing and screening applicants
• Negotiating lease agreement terms
• Complying with laws and regulations on landlord-tenant relations 
• Contract signing and enactment
• Collecting deposits and monthly rent payments
• Managing property make-ready
• Managing property maintenance and repairs
• Negotiating and settling disagreements and disputes
• End-of-lease management and deposit refunds

The fundamental difference between DIY property management and a professional service is the degree of direct involvement and the relationship the owner has with tenants. Many owners want to build that relationship, but some prefer that a management team take on the responsibilities.

Advantages of using a property management service

Hiring a property manager brings these benefits:

• Having an expert in the legal dynamics of advertising the property, screening applicants, negotiating lease terms, dealing with disputes, and maintaining the property
• Unburdening yourself from the time commitment of property management
• Maximizing rental income from each property
• Cost control for maintenance and repairs
• Having an established vendor list of repair companies, so you don’t have to find your own plumbers, electricians, and so on. 
• Relieving the stress of dealing with all these pressures
• The ability to scale the management scope as your portfolio of properties grows

Disadvantages of using a property management service

• Paying management fees that cut into your profits
• Loss of relationship with your tenants
• Less personal control of decisions as you give that responsibility to the manager

The decision point

For many owners, the decision to use a management company comes when they realize that
growing a portfolio of properties will require professional help. An owner can only handle so much responsibility, after all. A growing number of properties forces the owner to seek help in keeping the enterprise running smoothly.

Don't do Real Estate Alone

Let's Talk

Contact Brett Young (216) 703-5740 Key Realty and Property Management

Mega Million Dollar Producer and Award Winning Realtor 1200+ Properties and counting

Go to https://realincomeproperties.blogspot.com/ to view what our clients make with our real estate

Need Property Management? Go to https://pmohio.org/

Go to https://www.clevelandincomerealestate.com/ for my Blog

DIY Property Management https://www.ohiopmservice.com/

Go to https://www.cashflowrealtygroup.com/ to see how we finish homes

List Your Home @ https://listcleveland.com/ 

#PropertyManagement #RealEstateInvesting #RentalProperties #PassiveIncome #LandlordLife
#RealEstateTips #CashFlow #InvestSmart #clevelandincomerealestate #keyrealty #success #buisness