It’s easy to underestimate the hassles and time involved when it comes to renting out a property.
It doesn’t sound too complicated. All you have to do is make sure the rent gets paid on time, ensure that everything works ok and check up on the tenants here and there. Isn’t that right?
In practice things can be very different. This is why it can extremely beneficial to hire a professional property management company so you don’t have to spend too much time stressing about things.
Even if you are lucky enough to find a responsible tenant, you’ll still have to deal with a range of other administrative and maintenance tasks. And it can be hard to predict as to whether they’ll be problems with the rent further along the line.
Here are the pros and cons of hiring a property management company.
Not only will a property management company that’s up to date with all of those tricky rules and regulations that seem just designed to catch you save you sleepless nights, it will:
- Make sure that you have regular, screened tenants occupying your property (or properties) and that there are no large gaps where the rent doesn’t get paid. The market can be pretty fluid and the going rate can change from month to month, so the company can keep abreast of such things. You’ll likely have a set contract for the first year and a good company should regularly assess rents at the end of each contract to ensure that you’re getting value for money.
- Regularly communicate with your tenant in order to manage any complaints they may have and fix them as soon as they can. There’s nothing worse than having a panicking tenant call you up at 3am, so the pressure would be off if someone else dealt with all of the issues that tend to arise.
- When it comes to maintenance issues, your agent should be able to find you a great deal. From boiler breakdowns to gutter cleaning; you’ll also know that the company hired will likely be reliable and already screened.
- Deal with hectic transitional processes. When a tenant finishes his/her contract and another moves in, the property manager’s job is to make sure that things go smoothly. This includes walk-through inspections, the returning of deposits etc.
If you hire a property management company, you’ll have to pay for the service. This can affect your overheads, but in the long run you have to remember that you may end up saving money and, more importantly, time.
On average, property fees tend to range from 10% for a let-only service, where the company will sort out tenants, take the deposit and do the paperwork, to up to 15% for full management services, although these are variable and can be up for negotiation. You need to also check contracts for hidden fees.
The pros far outweigh the cons when it comes to hiring a management company. Whether your property portfolio is a single residence or many properties spread over a large area of the country, the infographic below will help you find a management company that suits your needs.