New real estate investors sometimes come to the game with inaccurate ideas about what it will be like to become a landlord and collect “passive” income on a rental property. They may even think they can maximize profits by skipping out on third party contracts for things like maintenance or property management, and just handle these issues themselves, as they arise.
However, owning a rental property isn’t easy. If you decide to forgo a contract with a reputable property management company, your bright investment idea can quickly send you into a spiral of unexpected headaches, hidden costs, and legal trouble.
Anyone who purchases any rental or investment property should at least consider the option of working with a property manager.
Your property management company will take care of finding and approving tenants, drafting and renewing leases, conducting routine maintenance, finding subcontractors for upgrades or remodels, collecting rent, handling tenant complaints, and even pursuing evictions when necessary, all on your behalf.
If your investment portfolio consists of one or two single-family homes, you may very well be able to handle all of this on your own, but when dealing with multiple units or larger properties, projects and issues can begin to pile up and get out of hand. Whether you own one house or a city block, you only have so many hours in the day to handle these types of issues.
A world-class property management company like Home365, with offices in Las Vegas, NV can do any or all of these things for you, typically for a small cut of the rent, amounting to no more than 10% for routine property management services (though highly customized packages to fully automate your operation and reduce risk may, naturally, be more).
If you’re unsure whether you need to contract with a property manager, ask yourself some of the following questions:
At this point, the benefits of working with a qualified property manager should be apparent. Here’s a rundown of the big ones:
Contracting with a property manager might sound like a pretty good idea after all you’ve read, but there are potential drawbacks to any business relationship, and it’s worth considering carefully whether working with a property manager is the right choice for you.
Here are some of the things investors sometimes dislike about working with property managers:
If you’ve weighed the pros and cons and you’re ready to take your rental business to the next level, check out full-service property management plans from Home365 Property Management.