One of the extra expenses that some property owners pay after purchasing a property is for property management services. These services are available to in-state and out-of-state property owners who are seeking a daily management solution. Not all property owners believe that third party management of a property is necessary. There are pros and cons of hiring a property management company. Each investor can weigh their options when deciding on their preferred type of management structure.
What Property Management Agencies Provide
1. Rent collection services
2. Handling of tenant issues
3. Property taxes
4. Hiring contractors
The Collection of Rent
Rent collection can be a difficult process to complete if a property owner lives out-of-state. A designated person must be appointed to collect rent on time and deposit the checks in a timely manner. Property management companies offer easy rent collection solutions for a nominal fee.
Resolving Tenant Issues
Issues can and do arise with tenants regardless of the length of lease agreement. Every property owner will face certain issues that must be dealt with promptly. The professional management of a property that agencies provide is designed to resolve tenant issues swiftly and without further problems. These companies have housing specialists who know how to resolve nearly all tenant issues.
Payment of Property Taxes
The semi-annual and annual property taxes that are payable for a rental property are expected to be paid on time. Managing out of state tax payments and assessments can be hard for a person without some type of assistance. Expert property management agencies help to design a plan to pay taxes for rental properties on time to avoid fees or possible foreclosures. These professionals coordinate the entire process as part of the standard monthly fees.
Hiring and Firing of Contractors
Repairing the interior and exterior of a property requires the hiring of a professional contractor to complete the repairs quickly. Property owners can waste a lot of time interviewing prospective contractors. Most property management companies have a go-to list of contractors who are licensed and available to perform the work swiftly and accurately. The management of contractors includes hiring and firing.
Cons of Hiring Property Managers
Most companies agree to work on a monthly payment schedule during the length of agreement. These extra expenses can add to the additional expenses already paid to purchase a rental home. These service fees are due monthly and require prompt payment to ensure services will continue.
The average property management contract appoints these professionals to speak on behalf of a property owner during specific times when the owner is not present. Handing over a lot of control to a property is one disadvantage of hiring property managers.
Because not all property managers offer the same level of service, it could be necessary as a property owner to use more than one company. Not all companies work out and evaluations must be completed for new companies. This requires additional time, expenses and resources to find the right agency.