What are the benefits of using a “Property Management Company”?
I would like some info on what a Property Management company does exactly. I understand this is kind of a broad question but if you can explain the roll of a Property Manager that would be great! Thanks.
A property management company might collect the rent and pay the mortgages- arrange all repairs and upgrades- find any new renters and check them out- evict people that do not pay-arrange to sell properties when you desire, mow and such when needed, challenge tax and insurance values when they are to high and pay them when needed. Arrange for 1031 tax deferred exchanges-and a lot more….
Or they may do very little. It just depends.
It isolates the property owner from tenants. If you own a small complex or duplexes and you live in the same town, it’s probably not worth hiring a property manager. But, if you are an absentee owner and/or a large project, it’s worth the money.
realtor.sailor
Screen tenants
Collect rent
Send out maintenance
Handle evictions
Basically, when you hire them, they would do anything and everything YOU would normally do being the owner/landlord.
They collect rents, hire a caretaker, send a monthly financial report to the owner. Some do repairs, or other services. They are responsible for renting vacant units. Of course the exact service they provide is negotiable, and their rates are dependent on the rates of competing managers, services rendered, accuracy of the owner’s rental rates as compared the the going rate of that property, the condition and location of the property. Most states require a real estate broker’s license for engaging in this business.
With a property manager the owner does not have to deal with tenants on a day to day basis. The property manger screens the tenants & do the credit checks. They do not have to deal with the stress of getting late tenants to pay or to evict non-paying tenants. The property manger handles all of that. We also coordinate any maintenance needs. The owner still has to pay for maintenance but they do not have to deal with or coordinate any contractors. It is all over much less stress for the owner.
It is worth it to get one even if you live in the same town if you do not want your tenants to know who you are. I live in a very small town and about 1/2 of my owners are locals. They like the ananimity or are just to busy to do it themselvs.