Being a landlord is a lot of work. Basically you are at the constant beck and call of your tenants. When a pipe breaks in the middle of the night, they call you. When something isnât working, it is your responsibility... This can mean that you will start to feel overworked and stressed out. Managing property can be a fulltime job and if you want to have your life back, you might want to consider hiring a property management company to fill in and help you out in the mean time. This will leave you with a little spare time for not a lot of money.
If you havenât hired a property management company before you should know that they arenât as expensive as you might think. In fact, they typically only charge 8-10% of what you receive. This is actually a very good value for what you receive. You see, your property management company will take care of almost everything that you do. They will advertise your property, show it to tenants, handle the negotiations with prospective tenants and more. They will also handle leases, screen tenants, take care of legal issues and taking care of maintenance. They will do everything that you would do, without having to spend the time and the effort doing it yourself.
Your property management company will even take care of financial reports for you as well. They can track payments on various properties and can even create customized reports for you using each of your properties. These reports can include deductions, expenses and much more. This will make organizing everything much easier and will help you to keep track of your expenses and your earnings.
Generally you can create an escrow account as well that will help you should an emergency arise. They will create an escrow account which you can use to store money for an emergency. Generally you will place money in this account each month to store until repairs are needed. You will also receive the necessary 1099 tax forms each year to use when filing your tax returns.
One reason that a property management company can really pay off is that it allows you to focus on other aspects of your business. If you want to start another company or find other revenue streams, you can without having to worry about who will take care of your properties. This allows you to increase your earning potential exponentially while increasing your ability to turn a profit and make money.
Property management companies know what they are doing and will make sure that you have the help you need to properly manage your properties. For example, you might not think to pick up supplies for each property, but they will. This helps to create separation between you and your tenants and can even result in happier and longer lasting tenants, When you have a property management company you have the benefits of renting properties out without much less hassle. At only 8-10% this is a small price to pay for convenience.