Property owners are often unsure about whether they should manage their own properties or allow a professional property management company to take care of the rental. It’s understandable to think you’re saving money by managing the property yourself and avoiding management fees. Investors might think the cost of a property management company is too high, but that’s because investors often don’t understand exactly what’s involved in professional property management. It’s a lot more than just collecting the rent. There are several benefits to using a property manager.
First, that property management fee you don’t want to pay is fully tax deductible. Just like any other expenses involved in your rental property, you can deduct the fee when you do your taxes, which immediately reduces the cost of property management.
Another benefit to professional property management is reduced maintenance costs. Because a management company handles maintenance on a volume basis, they are able to contract with reliable vendors at reduced rates. Your maintenance savings can often equal several months of management fees. Property managers also stay abreast of current laws regarding worker’s compensation and liability insurance. They verify the license and coverage of every contractor who works on your property and keeps pricing competitive through a bidding process.
A major benefit to using a property management company is the access you get to professional expertise in a variety of different areas. Your property manager will be current on fair housing laws, landlord and tenant laws, best practices in rent collection and eviction procedures. Your property manager will know how to effectively market your property, and keep your vacancies minimized. Losing rent because your property sits on the market is far more expensive than a property management fee.
Property managers are able to conduct through background checks when screening tenants. A property management company has access to credit history and criminal background checks to qualify applicants when filling vacancies. They can check income, work history and talk to current and former landlords.
Many owners simply find that having someone else worry about the many details of property management is worth the cost of their fees. You’ll enjoy the benefit of getting your time back and reducing your stress.
If you have any questions, or you’d like more information on why you should consider a professional property manager, please contact us at PRS Property Management.