As a landlord, one of the biggest choices you'll need to decide on is whether hiring a property management company the wise thing to do. Many real estate owners don't need one because they manage their properties on their own or hiring a resident manager can be an option. But what exactly does a property investment company do? A property manager in Washington DC or investment company is a third-party contractor that deals directly with your tenants, current and prospective ones. They can lessen your worries on the monthly responsibilities of a landlord like collecting rent, marketing your investment, responding to tenant complaints, handling repairs and maintenance issues, and even pursuing eviction, in some cases.
Your property manager will handle tenant screening for you. They will make sure that those who pass are the tenant you want, those who pay a timely rent, take care of the unit, and cause less trouble for you.
The need to use a property investment company in your real estate investment depend on many factors. Below are some excellent reasons why contracting an investment company the best thing for you.
The more units your rental properties contain and the more you invest in real estate, the greater the benefits you'll get from a property manager.
If your units are far from your residence is, hiring a property manager can be invaluable to you. An excellent investment company will handle conflicts or problems that you may be able to address from afar.
If you are the kind of landlord that views your properties as just investments and the day-to-day responsibilities of running one is such a drag, then a property manager is what you need.
You may be the kind who enjoys the challenges of handling the daily grind of rental properties, but you have other businesses to attend to, a management company then is a valuable option for you.
Marketing your units to maximize income and minimize vacancies, track your rentals' revenues and expenses to measure profitability, rental agreements negotiation, responding to tenant requests and other problems, and compliance with federal and state laws are some major responsibilities a property investment company will do for you. They can also help in the physical management of your building. Since investment companies have in-house maintenance staff, as well as a network of licensed contractors like plumbers and electricians, you can tap them at a much lesser cost for you.
However, you need to also take into consideration the cost of hiring one since contracting a property manager can be very expensive. When you search and interview investment companies, expect to receive quotations from them ranging between 6% to 12% of your rental collection.
A good property investment company brings its expertise how best to handle your rental units giving you the satisfaction of knowing that your rental properties are in better hands. But you also need to weigh the expensive cost the decision entails.