Numerous individuals discover that investing in rental properties is a profitable way to earn income and amass wealth. However, being a landlord involves substantial work, including managing tenants, collecting rent, and addressing maintenance requirements. This can quickly become overwhelming, thus employing a property management company can be a valuable solution.
Despite the existence of both advantages and disadvantages to hiring a property management company, it’s important to meticulously assess them before making the right choice.
Advantages of Professional Property Management
Hiring a property management company offers several benefits, even if you own only one rental property.
- Time Savings: One significant benefit of hiring a property management company is the time saved. Property managers are professional authorities who oversee tenant applications, rent collection, maintenance requests, and more.
- High-Quality Tenants: Management companies have a screening process to select tenants of excellent quality. This screening procedure helps lower the likelihood of tenants who might default on rent or damage the property.
- Maximize Rental Income: Property management companies possess the knowledge and expertise to set a competitive rate for your property, maximizing your rental income and resulting in a profit even after covering your expenses.
- Legal Expertise: Expert property managers are well-versed in landlord-tenant laws and can ensure compliance with regulations, thereby minimizing legal risks.
- On-Call Maintenance: Property management companies can manage maintenance, repairs, and emergencies for your rental property, even outside regular business hours.
The Disadvantages of Professional Property Management
It’s important to emphasize that property management companies can be useful, yet there are also drawbacks to depending on them.
- Cost: A significant drawback of hiring a property management company is the cost involved. The payment amount varies based on your contract terms and may be a percentage of the rental income or a monthly charge. It’s important to consider carefully whether the benefits provided by the property manager outweigh the expense.
- Lack of Control: When you enlist the services of a property management company, you surrender certain control over your rental property. They are possibly tasked with making decisions about tenants and repairs. While it may be preferable for certain owners and not for others, it can alleviate stress and save time. Whether or not to hire a property management company depends on your individual needs and preferences.
- Opting for Cheap over Quality: Refrain from opting for the cheapest property management company just to cut costs. They might lack the experience required to successfully manage your rental property. Furthermore, their services might be subpar, and their standards inconsistent. Instead, go for a property management company with a reputable track record and high standards. Comprehensive research is key.
Employing a property management company has its pros and cons. On the positive side, they can manage a variety of day-to-day tasks related to rental property management. Conversely, there is a monetary aspect, and some landlords may feel they are sacrificing control. It’s essential to carefully evaluate both sides before making a decision.
If you’re in need of quality property management services in Pittsburgh and its surroundings, Real Property Management Keystone is here to assist you. Our seasoned team is here to help you evaluate your needs and ascertain if property management is the right choice for you. Contact us online or call 412-385-2300 today!
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