When Should a Landlord Start Looking for a Property Management Company?
We frequently get asked by Landlords about when & why they should seriously consider bringing a property management company on board. This really depends on the asset class and the goals of the landlord. For example, if you are buying NNN assets and you don’t like managing then by all means you should bring a management company on as soon as possible because the management fee is usually paid for by the tenant. The goals of the landlord is really the driving factor to this decision, if you don’t mind the phone calls and the daily operations then you may save money by self-managing but if you don’t feel that this is for you then you should start searching for an experienced property management company immediately. Here’s why:
- The management company will have vendor relationships that can save you money and can be trusted.
- The property management company will stay on top of all local/state regulation changes.
- A property management company will deal with your tenants in a professional business manner, and not be swayed by “emotional” requests
- Evictions can be very emotional and sometimes even dangerous for the owner but a management company deals with this on a daily basis, therefore their experience can more than likely save you losses.
- Maintenance of your investment asset is critical and a management company should have a maintenance crew on staff to be sure your investment maintains its quality condition.
- The calls in the middle of the night can be upsetting and expensive if not handled properly, a management company will have an emergency number that will vet out the problem at hand and confirm it is in fact a true emergency
- A property management company will keep records of all receivables and expenses, and budget for unexpected capital expenditures so there are no surprises, and making tax reporting easier for your accountant.
- A property management company will ensure that any on-site employees/managers are treated per the local labor laws, and will provide them with appropriate insurance.
Finding an experienced property management company that can ensure your investment is being taken care of is crucial. Starting the search just prior to acquiring an investment would ensure that your property is being maintained right from the beginning. Not to mention, you’re saving valuable time & money by having a responsible company manage your asset — from collecting rent, accounting, hiring maintenance crews, answering tenant phone calls and handling evictions. This is an especially valuable service if you have other business ventures or personal / family responsibilities.