If Your Property Is in a Townhouses for Rent Database, Consider Having a Management Company
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Should I Consider Employing a Management Company If I Want to Offer My Property in a Townhouses for Rent Database?
A rental property management company may or may not be valuable to you after you list your real estate in townhouses for rent databases. Before you decide to use or not use one, give some thought to your plans and goals. Here are a few things to consider.
- What type of landlord do you want to be? Are you interested in being an “active” business owner, managing all of the various factors surrounding apartments and homes for rent? Or do you lean towards being a “passive” landlord, leaving the day-to-day requirements to others so your major activity is cashing monthly rental income checks?
- Rental property management companies typically charge 10% to 15% of the monthly rental as their fee for services. Are you able to price your rent at a level that allows you to absorb this fee without harm to your budget? You should look at this fee as a component of your fixed monthly expense (mortgage, insurance, taxes, condo fee, etc.). In return for eliminating all of the requirements of managing a rental home – collecting rent, making repairs, promptly attending to emergency problems, and other items – this fee is typically reasonable. Is this worth the management freedom it offers to you?
- If you want to employ a management company, resist the urge to merely pick one out of the phone book. Just like the rest of the business community, there are both good and less than efficient rental management companies. Screen prospective companies just as you screen prospective tenants. Ask for references that you can verify.
As you can see the first decision is personal. Do you want to manage a business or just enjoy the income? If you decide to follow the passive approach, examine some rental management companies who understand the rental basics and perform at a high level for other landlords like you.