45% of landlords attempt to manage their own properties. They'll suffer a lot of unnecessary headaches from the moment they buy it.
Property managers are the solution, but they vary in what kind of help they provide. A full-service property management company takes care of any duties you would have to handle as a landlord. They free up your time so you can make passive income as a real estate investor.
Read on to learn about a few situations where full-service property management may be right for you.
You Don't Want to Deal With Hands-On Management
Property management involves a complex set of tasks that you may not want to deal with yourself. They include:
- Finding and screening tenants
- Collecting rent
- Maintaining the property
You may not have the time for this type of management. Being a real estate investor may only be a side activity for you, and you don't have enough hours in the day to do it while attending to your family and day job.
You Don't Want to Be an Employer
When you hire a property management company, they don't become your employee. The proper term for them is an independent contractor.
You'll still have to pay them a fee between 8-12% of your monthly rent payments, but they don't work for you in the traditional sense. That means you can avoid hassles such as payroll.
You Manage Several Properties and Don't Live Near Them
6.7% of individual tax filers (about 10.3 million) own rental properties. They have 1.72 properties on average.
Owning any more properties is difficult to handle unless you're part of a large business or housing conglomerate. It becomes even more difficult to manage even one property on your own if you don't live near it.
Having a full-service property management company is almost like being in two places at once. They'll split up their team and maintain all your properties, even if you're relaxing at home far away from them.
You're Part of An Affordable Housing Program
Being a landlord who has investment property that's part of an affordable housing program can be a great but complicated choice. It comes with an agreement that you'll rent out at least part of it to tenants below a certain income level. In return, you get financial assistance such as:
- Low-income loans
- Tax credits
The problem is that you have to follow a set of laws and rules to keep receiving this money. Hiring a property manager who's experienced in this area can help you understand them.
Where to Find a Full-Service Property Management Company
Full-service property management companies handle every responsibility you'd need to perform as a landlord. This includes everything from attracting and screening tenants to maintaining and marketing your property.
They help overwhelmed investors without even requiring them to hire anyone. They're perfect for those who have a large number of properties or live far away from them. They also help them follow the laws in affordable housing communities.
Remax Haven Realty is your choice for Cleveland property management. Contact us today.