As a landlord, you’ll make a lot of important decisions, and you’ve probably heard about other business owners making the choice to use a property management company. You yourself may even be wondering “Why should I use a property management company?” and “What is a property management company to begin with?”
We answer both of those questions in detail below.
What Is a Property Management Company?
Plain and simple, a property management company directly manages current and prospective tenants. They handle rent collection, any repair and/or maintenance issues, manage and resolve tenant complaints, and handle any evictions that need to be made.
In short, property management companies handle the tedium of owning a piece of property that is being rented out. Since they are classified as independent contractors, you also don’t have to be classified as an employer, but simply someone who just uses an external service.
Property management companies often have years of experience in understanding how to resolve tenant issues and management which is why they can be especially valuable to someone who recently became a landlord and doesn’t want to be as invested in dealing with tenant proceedings.
Why Should I Use a Property Management Company?
Property management companies primarily save landlords time more than anything else since they handle tenants directly without the need for a landlord to get involved. While some landlords like investing time in finding the best possible tenants and maintaining the property they own, others don’t. A property management company is especially beneficial to the landlords that just want to deal with their property as an investment piece.
For landlords that already own a lot of rental properties and/or units managing them all can be challenging. Landlords that also live far away from their properties and have to spend time commuting to each one can also make frequent visits a hassle. A property management company can help deal with the most time-consuming work and leave your day more open to work on other projects or jobs.
If you hire other professionals to help you manage your rental units or property(s) you’ll be considered an employer and will need to handle payroll amongst other administrative tasks. If that doesn’t sound appealing to you then a property management company can handle the reins without you needed to be classified as an employer since they are independently contracted.
On the flip side, if you’re already an employer and your own business is growing, a property management company can still be beneficial since it can help you focus more on your business and have to manage fewer responsibilities of being a landlord.
Clearly, property management companies can help landlords save valuable time and effort they can then dedicate to the other aspects of their lives they value most.