Whether you are looking to expand your rental property portfolio, or want to free up more of your own time, hiring a management company can be a great idea. However, before you hand over your valuable investment to someone else, it is important to understand what their responsibilities are and what fees to expect.
In addition to advertising your property and screening prospective tenants, the management company will take care of repairs, maintenance requests, and other tenant-related issues. They will also analyze the rent rate for your property and use market data to help you set a competitive price that will attract tenants and earn you a profit.
A good management company will be familiar with landlord laws and know how to protect you from liability. They can save you from expensive fines by knowing what your responsibilities are as the landlord and what the tenant’s responsibilities are, too. They will also be able to guide you through the eviction process and other potential legal pitfalls.
Property managers typically charge a fee for their services, which is usually a percentage of the monthly rent (typically 5% or less). Some companies will also charge a leasing fee and other miscellaneous fees, so make sure you ask about these before hiring them.
Some landlords may prefer to handle everything themselves, but it can be difficult to keep up with the many responsibilities of owning rental properties. If you are interested in a hands-on approach, a management company may not be the right fit for you. management company for rental properties