If you own property with rental homes, there may come a time when you have to decide if you want to be a landlord or hire a property management company. Earning income through rental homes can be a wonderful way to build a business, but managing multiple homes, and sometimes even one, can be difficult and time-consuming. Especially if you do not live on site or near the rental homes, property management can be a headache. Before you hire a property management company to take the burden of being a landlord off your hands, consider these pros and cons.
Property Management Pros
Using a property management company means that you will pay a fee to have a third party manage your rental home. Here are the pros of using property management:
Professionals in marketing
Expert leasing agents
Legal knowledge
Maintenance staff employed
Collection of rent and fees
Fields all phone calls from leads and tenants
Knows the best vendors in the area
Often has discounts with vendors in the area
Available for tenant emergencies
Adheres to a property budget
Finds best tenants for your property
Handles all tenant requests and communications
Cons of Using Property Management
While the benefits of using a property management company are numerous, there are a few disadvantages to hiring a third party for your rental property.
Reduction of profit margin
- Loss of hands-on control
Property management companies cost money. They will often require a deposit up front that can be used for marketing and payment purposes. After a home is rented, the property management company will usually retain a certain percentage (usually around 10%) of the monthly rent in their fees. The property owner is responsible for providing payment for all invoices to vendors or maintenance issues in most cases.
Scott Properties is the perfect solution for property management needs in Charleston. Contact us today to see how we can help you!