How Do I Know If I Need a Property Management Company?

Did you know that one of the most significant decisions you will make as a property owner is to hire a property management company?

Most commonly, you will find that property owners manage their properties. If they have more than a few, they will usually hire a resident manager to help them manage. But if your workload increases, it may be time to consider a property management company.

Property management companies can be a great asset in managing your properties. They are not cheap to hire, so ensure you have enough properties to justify their management costs and leave room for profit. 

Here are some things you may want to consider to know if you need one. 

What Is the Work of a Property Management Company?

Property management companies handle five main aspects of running a property.

• They handle tenants and prospects and marketing.

• Collection of rent from your tenants.

• Take care of repair and maintenance issues.

• Responding to complaints by tenants.

• Handling late fees and sending notices.

• They handle compliance and legal matters.

• Screening of prospective tenants.

A good property management company will have experience managing many properties. Your property is safe because they will utilize their experience to get the best out of your property. 

When Should You Consider a Property Management Company?

A property management company comes with a lot of benefits. Here are some indications that you are ready to get one.

Your Portfolio Is Expanding

Managing several properties can become a full-time job for most people. If you continue to add more properties, it can become a bit overwhelming for you. You may also want to spend your time doing other things. You may be ready to get a management company if you have a significantly extensive portfolio. 

You can earn passive income from your properties while you do other things. The company will handle all the aspects of your property, including marketing. This will ensure you will always have good-paying tenants every month.

You Live Far From Your Property

You may have bought a property in a different town or state. This can make managing it on your own very tricky, especially in an emergency. It would be best if you had someone close by who could take care of the property needs and handle repairs. Marketing from a different state can be challenging, which may mean months apart between tenants.

You Need Good Tenants

Property management companies handle all the elements that ensure tenants' flow. They screen new tenants to ensure they can pay rent and are trustworthy. A property management company will also deal with tenants for you if the tenant pays their rent late. They have the skills needed to get the rent paid on time every month.

You Can Afford a Management Company

You can consider a management company if you have properties that bring in significant monthly returns. Usually, property management companies will charge between five and 10 percent of your monthly rental income. If you feel you can afford this, you may be ready for one.

To know if you need a property management company, visit Prime Property Group at our office in Oakland or Sacramento, California. Call (510) 225-0470 or (916) 822-9655 to book an appointment today.

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