Here’s a twist on a familiar favorite: How many landlords does it take to change a lightbulb?
It’s not as simple as you’d think. A survey from Porch found that 13% of calls from renters to landlords are requests to change lightbulbs. It’s no wonder that 88.3% of landlords experience stress when handling tenant requests and routine maintenance.
Let’s add a few more numbers. There are 296,256 property management businesses in the US as of 2023, an increase of 2.1% from 2022. Of this number, less than 50% of all landlords manage their own properties, according to property management industry statistics.
f you’re a landlord still stuck changing the lightbulbs at your own property and experiencing regular and unnecessary stress, this guide is for you. Here we will explore the pros and cons of hiring a rental management company to help you manage the day-to-day issues of property management.
All property managers have experience with the elements that make management difficult for individual landlords. They have a thorough understanding of issues such as fair housing laws, a history of dealing with standard tenant issues, and a network of contractors available to mitigate tenant needs. Plus, many management companies hire professional property managers with real estate licenses, so this knowledge is also a bonus.
Without the pressures of fielding daily tenant needs, property owners can build their real estate portfolios and pursue other interests. Working with a property management firm and tapping into their market expertise can be advantageous to property owners looking to expand their real estate holdings.
Putting your property in the hands of an experienced professional means that a landlord is not tied to the area where your rental properties are. Want to travel the globe or take that job offer in Seattle? No problem. A property manager will keep an eye on things while you follow your dreams.
Finding and keeping good tenants in your property is no easy task. Property managers make it their priority to keep your property occupied—their job depends on it. In fact, some property management agreements stipulate that property managers only get paid when tenants occupy the property. So property managers must prioritize screening tenants in a timely manner. And when tenants occupy the property, an excellent rental management company will handle any conflicts peacefully and quickly.
Shorter vacancy times and decreased turnover is also achieved through the right marketing. This makes a rental management company is popular especially valuable for property owners without a marketing background—which is most. A good rental management company will handle all marketing requirements between tenants–including hiring photographers, staging the property, and advertising your place to find the best tenants, so your place spends the fewest possible days tenant-free.
Because a rental management company has been in the game longer than most property owners, they’re able to save money on routine maintenance. Having a network of contractors and maintenance professionals means better rates and increased profitability for your real estate business.
Last, but certainly not least is handling daily rental management headaches. A property management company will field rental payments, maintenance requests (like those pesky lightbulbs), and any after-hours emergencies. You no longer have to keep your phone close day and night.
When a property management company takes over day-to-day operations, there are fewer decisions for you to make, which can be disconcerting for some landlords with a particular emotional investment in their property. But, while letting go of specific routine tasks can be challenging to accept at first, most landlords enjoy the freedom and, at the end of the day, have the last say in decision making.
Hiring a real estate management company comes with a price tag. While fees vary depending on a property management company's services, the ROI delivered is typically worth it. It’s better to think of property management fees as an investment in your real estate business rather than a commodity.
Property management companies will typically offer a basic package and separate services for special circumstances such as evictions, late payments, and certain kinds of maintenance. Landlords often spend time learning about possible fees before entering into a rental management agreement, so they can get the most value.
Finding the right real estate management company can take time—it's not a decision that owners should make quickly or rashly. Your decision should be well informed. Being stuck with the wrong property manager until your contract runs out can be a costly mistake—one it’s best to avoid.
Doing the adequate research can feel like a lot of effort. All Property Management’s search tool makes it easy to get started. We help property owners find managers who increase revenue and decrease stress. Get started today!