For a landlord, there is no more significant decision than the one about who manages their properties. Whether you have one property or a portfolio of them; the property management aspect of your business is a big one. It can be time-consuming to do yourself but getting a management company costs money. It’s a big decision.
Property Management Company vs Self-Management
When you’re thinking about going with a property management company vs self-management, there are a few factors that may play into your decision. They are mostly related to money, control and time.
Money
If you manage your properties, you get to keep 100% of the profit. You can reinvest it into the properties or take it out the business. It’s your money, your decision. When you use a property management company, they will take a portion of your profits. So it can seem like an easy choice. However, it can be a false economy to do it all yourself.
Your property could easily be more profitable when under the care of a management company, which could cover the cost of using them. At the same time, it also offers you some legal protection. The laws and legislation that govern rental homes are subject to change. If you don’t keep up, you can be in a difficult position where you may lose rent or have to pay legal fees.
Control
If you opt for self-management, then you get to keep complete control over your properties. You make all the decisions, and that’s final. Relying on a property management company takes away that control. You no longer make all the day to day decisions.
If you have more than one property, that might be a burden worth sharing. Managing a few properties can quickly become a full-time job. It can be exhausting to make that many decisions. Unless you have a sentimental attachment to your rental properties, it is usually a relief when you give up the control to a professional company that will take care of them for you.
Time
Managing the day to day running of rental properties is an unpredictable business. Some times of the year, there can be very little to do. Other times you won’t have enough hours in the day to deal with finding tenants, solving problems and chasing rent.
The biggest benefit of choosing a property management company over going down the self-management route is that it frees you up to spend your time on other things. Since your time has value, it can be an investment rather than a cost.
Added Benefits Of Using An Estate Agent For Property Management
Property management companies can offer a lot of services and benefits. However, you might want to consider using one that also specialises in other property related services, like Pat Robson & Co. Businesses like ours are in a position to offer you even more services and will likely be much more knowledgeable about the local property market.
Shorter Tenancy Gaps
An estate agent is on the front line of the property market. The moment someone starts looking for a place to live, they go and talk to an estate agent. So, a property management company based in an estate agent has the best access to potential tenants. This helps to reduce gaps between tenants and optimises your profits.
Correct Valuation
It’s an estate agent’s job to know the housing market inside and out. This means they will be able to help you put the right price on your rental property. Getting the price right will mean you get the right tenants at the right time, to keep your property profitable.
Marketing
If you want to market your rental property, where do you want to get it? The answer is in an estate agent’s window or website. With an estate agent based property management company, you’re automatically where you need to be.
Better Tenants
Getting the right tenant is essential. You need to know that they are going to pay on time and that they aren’t going to wreck the place. Estate agent based property management companies are ideally placed to interview potential tenants and get a feel for them before they recommend your property. This allows them to choose desirable tenants that will make everything go more smoothly.
Estate agents have a lot of connections in the housing market. This makes it easy for them to follow up on references. They can also perform credit checks on your behalf.
Happier Tenants
It can be hard work to keep tenants happy. If you are renting properties as a second source of income, then it can be hard to juggle everything. Using an estate agent based property management company will lead to a better experience for your tenants. The tenants know precisely where to go when they have an issue, and they can get it fixed quickly.
