One of the primary advantages of doing property management is that you will have firsthand knowledge of the market. This means that you can accurately assess the prices of properties and forecast rental revenue growth and expenses. On the other hand, the average property management professional may not have access to current market data. As a result, property owners often find that they are overcharged for rent, or their property maintenance expenses are out of control. While these pros and cons exist for all kinds of real estate investors, those who manage their properties usually see immediate savings in their bottom line.
When you manage your own business, you also have the flexibility to schedule your own appointments with tenants. Unlike property management professionals who must visit properties on a regular basis, property managers rarely have to make this type of schedule commitment. As a result, the results can be far more beneficial because property owners can avoid missed deadlines, lost business, and negative publicity from poor tenants.
Another advantage of managing your business on your own is that you are able to provide new services to your tenants on a more frequent basis. In many cases, property managers only commit to hiring new employees once a year or less. This can limit your resources and inhibit your creativity when it comes to providing new services and marketing options to potential tenants. Instead of depending on a property management company to provide maintenance and landscaping services for an entire neighborhood, property owners can hire their own team of caretakers for each apartment. With the added benefit of personalized care, tenants will know that they are getting the highest quality service possible.
Unfortunately, property management companies don’t always operate in a fair or competitive manner. Many property managers use illegal practices, such as exorbitant fees and late fees. Such practices often discourage potential renters and push them away. At the same time, some property managers fail to pay the necessary maintenance and property taxes, resulting in further depleting the funds available to the landlord. As a result, landlords often face significant financial problems, which are often tied to unpaid property taxes and maintenance issues.
Hiring an independent real estate manager provides many advantages. When hiring an independent manager, the landlord is free to concentrate on other aspects of his business. For example, instead of waiting for the weekly property management companies paycheck to arrive to make sure that rent is being paid on time, the landlord can have the property management company sends a check directly to him or her. In many cases, property management companies also offer rent assistance, which can save landlords hundreds of dollars a week.
However, not all property management companies are created equally. Many estate brokers, who represent large real estate companies, will recommend that landlords simply go with the cheapest option available. The problem with this approach is that it can leave landlords with an inexperienced and poorly trained manager, potentially resulting in excessive property damage and property loss. On the other hand, when landlords do their own investigation, they may find that hiring an experienced property management company will be significantly more cost effective and beneficial. Some estate agents may even recommend an experienced professional to help landlords locate qualified managers, so that landlords do not waste their valuable time trying to find a manager on their own.
Although property management services do vary greatly, there are some common services that most providers offer. Tenants can usually expect to get prompt and courteous service from property managers, who should always show up for their appointments. Property managers typically provide security services, such as collecting rent late and collecting late payments by tenants. They may also provide advertising services to help landlords advertise the property they are renting to renters seeking a home.