Determine the amount of time and effort that you want to put into your real estate investment. It may be suitable for you to manage your own properties or you may want to consult a management company
The benefits of a management company included not having to worry about the little details. The management company will take care of advertising, repairs, screening tenants, and those late-night phone calls when something breaks. They are not, however, liable for any vacancies or repair expenses incurred.
If you are the type of person that wants to retain control of exactly which tenant you allow into your property or any other aspect of the management of the property, then a management company is not for you. By allowing a company to manage your property, you must release some control of it to them. At times, they will need to make judgment calls without consulting you first.
Hiring a management company can be expensive. They will usually charge a fee (sometimes half of a month’s rent or more) for every time that they re-rent the unit. They will also charge for advertising and for all repair expenses. Usually, there is also a monthly percentage collected for managing the rental. Remember to take these expenses into consideration in your analysis.
I’m asked frequently why I do not own a property management company or offer this service?
The answer is simple: I believe YOU as the OWNER will be a far better manager of your own investment than even I could ever be for you. I am, however, happy to help you learn how to do it yourself for FREE, and even have a guide available to help you through the process.
All of my past clients will also tell you I will always pick up the phone to talk through an issue with you, right after the deal closes, or 10 years later!
Think of it as a “lifetime warranty” on my services to you!