Is Property Management Worth the Cost?
Whether you currently have a number of investment properties or you are beginning to think about obtaining one for the first time, you may wonder if property management is worth paying for. Understanding the costs as well as the returns can help you make this very important decision.
What Does It Cost To Hire a Property Management Company?
When investigating management companies, there are a number of factors that play into the cost of services. For instance, the price will vary depending on whether your property is commercial, industrial or residential. Renting to more than one tenant or going with long-term rather than short-term leases will also have a bearing. Be sure to take the time to find out what the management company offers and make sure that you provide clear information on what you want to happen.
What Benefits Are There To Hiring Property Managers?
Many management companies provide you with a number of benefits that will save you quite a bit of time and effort and can be well worth it the cost in the long run. Some of the things managers may do include:
- Collecting rent from each tenant
- Marketing vacant property
- Dealing with late payments and Evictions
- Showing the space to prospective renters
- Screening interested parties
- Maintaining the property and locating professionals for certain types of repair.
- Handling complaints from tenants
If the managers you work with use management software such as Yardi Canada, they are likely to be very organized and can more easily manage your assets.
Is Hiring a Property Manager for Everyone?
If you have plenty of time on your hands and have a small number of properties, you may want to do the management yourself. However, if you are investing in rental properties and have a separate job, the time it may take to handle the day to day affairs of the property can be very consuming.
If the benefits outweigh the costs, look into hiring a management company for your properties. That way, you can focus on the bigger picture of your investments.