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What Motivates Landlords To Use Property Management Firms?

buying a home

Landlords with one or more rentals, either immediately or later, need to weigh up the pros and cons of using property management firms. The alternative is to self-manage, which landlords who have done it realize is neither straightforward nor hands-off.

Owning rental properties requires hands-on management, and not all landlords have the time or inclination to do it themselves. Therefore, outsourcing to a trusted property management firm is the right solution. For landlords unsure which action to take, read on to learn more about professional property management.

Motivation To Use Property Managers

What typically motivates landlords to use third-party property management companies?

No time

Landlords primarily use a property management company rather than self-manage to save time.

Lose money

Managing rental properties can be full-time, and many landlords usually have full-time jobs, so they don’t have the time for property management. While managing tenants and properties may be attractive to some landlords, it’s not lucrative, and their day job pays much more.

Property investors own rentals as an investment strategy. They provide the added cash flow – i.e., the profit from the rental income after expenses.

Plus, over time, real estate beats inflation and has a higher return on investment than leaving your savings in a low-interest bank account. When it does come time to sell, the homes will be valued far higher than when purchased.

Hands off

Others are simply weary of the demands of tenants, the tenancy laws, and upkeeping their properties, so they leave it to the experts, i.e., property managers.

After a full day at work, many landlords want to spend time with family and friends, not at their rental properties dealing with maintenance!

Property management companies have the resources to handle maintenance requests quickly and efficiently, from minor repairs to major renovations. They also have access to a network of reliable contractors who can provide quality work at competitive prices.

Landlords can save money on repairs and prevent more serious damages from occurring due to overdue maintenance requests. It also ensures that each rental property is well maintained, reducing tenant turnover.

Less risk

When managed by a third party, there is less risk of taking the wrong action with tenants and the property. Property management companies do everything from tenant screening and leasing to maintenance and repairs. Plus, they have access to resources that can help quickly resolve tenant disputes or other problems that may arise.

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Getting a third party to handle rent collection, evictions, legal issues, and more is less risky.

The most significant risk is not knowing the landlord-tenant laws and regulations of the area where you have your rental properties. Not all landlords live in the exact location or State of their rental properties, and the laws are different throughout the USA. Using a property manager relieves the landlord of this task.

Finding tenants

One of the most stressful tasks as a landlord is finding suitable tenants. Thankfully, property management companies are experienced in marketing and advertising rental properties, which can help landlords secure tenants quickly.

Knowing how to screen potential tenants is a skill that an experienced property manager uses adeptly to ensure that only qualified renters move into your properties. This helps reduce the risk of non-payment or other issues that may arise from unqualified tenants and takes the stress/hassle of these tasks off your plate.

Motivation to Manage

Some landlords don’t want to let go of the responsibility of property management.

Control

Being in control of your rental properties is worth the trade-off of free time. By self-managing, landlords can have more control over the day-to-day operations of their rental properties, including selecting tenants, setting rental rates, and handling maintenance and repairs.

Landlords with few properties may find it more practical to self-manage rather than hire a property manager.

No property management fee

Some landlords prefer to handle all property management tasks themselves to save money.

Inspections

Instead of a property manager inspecting your rental property, you will do it and know its condition and how the tenants look after it.

Some landlords have experience managing rental properties or have expertise in real estate, making them feel confident in their ability to manage their properties.

Outsource or DIY?

Most landlords use property managers like Cairns trusted property management service to save time, avoid stress, and ensure that their properties are well-maintained and rented out to reliable tenants.

Property managers enjoy the tasks, including advertising vacancies, screening tenants, collecting rent, dealing with maintenance and repair issues, and responding to tenant complaints. By hiring a property manager, landlords get a lot of value from their expertise and experience in managing rental properties while freeing up their time and energy to focus on other priorities.

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Conclusion

There will always be landlords who prefer to self-manage their rental properties. However, landlords with multiple properties, those who have invested in homes in different locations, and new property investors prefer hiring a property management company. If you’re considering outsourcing your rental property to a property manager, you’ll want to ensure you choose one with a good reputation. Please do your research, including asking other landlords who they use and looking at customer reviews.