Professional property management refers to the use of a third party as the primary contact then you want to rent or manage a residential or commercial real estate. The manager is given the power to make decisions about the upkeep and the marketing of the property and contact with the owner usually does not occur until a qualified candidate is interested in the establishment.
A professional property management firm has many functions based on the type of real estate under contract, including answering questions about the estate, screening candidates and advertising listings. If there are repairs to be made, the property managers can be empowered to schedule the needed improvements. The property manager will operate the real estate for a fee, usually when the owner is not interested or unable to do so. Hiring a manager is a personal decision. Before you make it, consider the following factors:
Can you afford it?
Before you hire a property manager you need to make sure you can afford it. A manager or firm will usually charge between 5% and 10% of the monthly gross income for the estate. The fee for more than 10 units is typically between 5% and 8% and for a single rental property close to 10%. If you only have one property with a $1,000 income a month and you pay the manager 5%, that means he receives $50. This is not a great enough fee to attract a quality professional.
Do you have enough time to manage the estate?
Having a full time job and a property that requires your attention can lead to an unsuccessful investment. Managing a property takes time, and time usually means money. If your daily obligations are interfiling with the obligation of property management, hiring a professional property management firm could be the best move.
The location of the property
If the location of your property is miles away from your primary residence, taking care of it might be harder. It will also be difficult for you to find tenants, quickly respond to emergencies, ensure that rent is collected on time, handle complaints and take care of maintenance issues. A property manager is a liaison between the owner and the tenant and can actually save you money, especially if it takes you a lot of time to get there.
Consider the number of units you have
As the number of units grows, so do responsibilities such as complaints, vacancies and maintenance issues. Moreover, if your units are not in the same place and are spread across multiple properties, managing them will require more time and commitment. In these situation, hiring professional property management can be the right choice for you.