When you are thinking about converting a house you own into a rental property, there are plenty of things to mull over. Do any renovations need to be done? Will my property be profitable to rent? One question that should seriously be considered, especially if you own multiple rental properties already, is whether or not to hire a property management company. Here is a list of five situations where hiring a property management company is a good idea for you.
1) You don't have time or energy to manage your rentals properly
Being a landlord can be a full-time job. Whether there are maintenance issues or management issues, your rental properties need your time and attention. If you already have a job or something happens that requires you to divide your focus, you might want to consider hiring a property management company.
2) You own more than one rental property
The more properties you own, the more of your time and energy is split between maintaining and managing them. Hiring a property management company could make sense if you want to continue investing in properties, especially if you plan to focus on acquiring them instead of managing.
3) Your rental properties aren't in the area you live in
This is an especially good reason to hire someone to manage your properties. The further away you are, the harder it is to follow through on your responsibilities as a landlord. Your renters need to have someone available when issues come up. Property managers can take care of issues much more quickly and easily.
4) You want to be able to maintain your distance from renters
You may be an introvert who needs time away from people to re-energize and regroup. Perhaps it's easy for you to get involved in other people's problems or you struggle with keeping yourself calm when someone points out something wrong. Whatever the situation is, a property management may be the help you need in dealing with difficult tenants.
5) You have the money to hire a property management company
One of the biggest drawbacks landlords see to hiring a property management company is the amount of money, but there are numerous benefits if you can afford it. For a good property management company, you should expect to pay them somewhere between 5% - 15% of what you collect in rent. That being the case, your profit margin should be above 15% in order to justify hiring a property manager.
RH Blanchard is an experienced contractor with years of experience in the Boston property market. If you have questions about interior remodeling or rental property management, contact us today. We'd love to help you navigate your next project.