The debate about outsourcing property management or not rages on both sides. It all depends on how involved the investor is willing to be with the property. That being said, many real estate investors are choosing to have an outside company manage their rental properties.
In this blog post, we’ll talk about the reasons why a real estate investor might want to consider outsourcing property management over doing it him or herself. We’ll talk about the benefits that outsourcing property management can have on an investor’s business and personal life.
Outsourcing Property Management From a Business Perspective
While hiring a property management company does come with costs, it can also save the investor money on expenses. For instance, a property management company may be able to reduce the time a property sits vacant.
The reason for this is that a property management company has agents that are dedicated to showing the rental property. Unless you’re investing in real estate as a full-time job, you may not always be able to show your property when it’s most convenient for your potential renter. This can lead to lost prospects and lost revenue through increased vacancy rates. Remember, every day a property sits vacant is a day that you lose money.
Not only this, but outsourcing property management gives you access to experienced agents that may be able to “sell” your property better than you. An experienced leasing agent may be able to get people to rent your property when they may have otherwise looked elsewhere.
An additional way to save can also come in the form of lower maintenance costs. Since a property management company often has in-house maintenance technicians, you’ll find that the costs associated with maintaining your property are lower than if you had to constantly hire outside contractors to do the work.
Outsourcing property management also comes with the added benefit of easy payment systems and easy screening processes. It is much easier to have your property management company electronically transfer funds to your account than it is to chase down tenants for a check that you’ll later have to take to the bank to cash.
Working can often be both profitable and fun, but not all property investors want to be “on-call” all of the time. Outsourcing property management means the investor will never have to wake up in the middle of the night to go and solve a maintenance emergency. It also means that the investor will not have to go shovel snow in the winter and will not have to mow grass in the summer.
This can be especially important for those that do not have the technical skills to solve most maintenance issues. Heating, air conditioning, and plumbing problems are all best solved by professionals with professional training in these areas.
Outsourcing property management can dramatically reduce the everyday stresses associated with owning and management rental properties. This not only increases the quality of life for the investor, but it also helps