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When Should You Hire A Property Management Company?

Updated: Jun 21, 2023

We get asked this question frequently because owners are often contemplating to do self-management or hire professionals to run their properties for them. It's often a financial decision since most owners consider their properties an investment or revenue generating asset.

If you live by your one or two properties in Scottsdale, you are handy with repairs and communications, and you have the time on your hands then it's typically worth it to try managing on your own. It is usually advantageous for our customers to have managed properties themselves so they have an understanding of the work we do.

In this post, we break down some of the factors involved in your decision to hire a property management company or not.

Hire A Property Management Company

  1. Time and Stress Management: Managing rental properties demands a significant amount of time and effort. By employing a property manager, you can free up valuable time and focus on other important aspects of your life. A property manager takes care of tasks such as tenant screening, property maintenance, rent collection, and handling tenant issues. This allows you to relax and enjoy the benefits of your investment without the stress of day-to-day management.

  2. Tenant Selection and Retention: One of the key responsibilities of a property manager is finding and screening tenants. They have the expertise and resources to attract quality tenants through effective marketing strategies. By conducting thorough background checks and reference verifications, they help minimize the risk of problematic tenants. Additionally, property managers work towards maintaining positive tenant relationships, ensuring higher tenant retention rates and reducing vacancy periods.

  3. Legal Knowledge and Compliance: Navigating the legal aspects of property management can be complex. Property managers are well-versed in landlord-tenant laws and regulations, ensuring your rental property remains compliant. They can provide guidance on topics such as lease agreements, eviction procedures, and fair housing laws. By staying up-to-date with legal requirements, property managers protect your investment and shield you from potential legal complications.

  4. Efficient Maintenance and Repairs: Property maintenance and repairs are inevitable responsibilities for rental property owners. A property manager handles maintenance requests promptly, ensuring tenants' satisfaction and preserving the condition of your property. With their network of reliable contractors and vendors, they can source quality services at competitive rates. Regular property inspections conducted by property managers help identify potential issues early on, preventing costly repairs in the future.

  5. Financial Management and Reporting: Maintaining accurate financial records is crucial for successful property management. Property managers handle rent collection, late payment enforcement, and financial reporting. They provide detailed monthly or annual reports that outline income, expenses, and profit margins. This streamlines the financial management process, making tax preparation and filing easier for you.

So ... Should You Hire A Property Management Company or Not?

The answer is ... it depends.

  • If you have 3+ long-term rentals and don't live nearby or have the time to manage them, hire a company.

  • If you have 1+ vacation rental or AirBnB and don't live nearby or have the time to manage them, hire a company.

  • If your properties deal with regular maintenance issues and you don't have a good facility maintenance team, hire a company.

  • If you enjoy managing tenant relations and want to maximize your profitability, self manage.

  • If you have access to a professional facility maintenance team and have a flexible schedule, self manage.

  • If your goal is to build a large real estate portfolio, hire a company.

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