Property management is one of the most common forms of outsourcing. It is usually local so some people don’t think of it as outsourcing. Any task that we might do ourselves that we can find someone else to do it fits the bill. Owning a property can allow you a way to make some money other than a typical 9-5 job. However, between getting the property ready for new renters, showing it and then taking care of your renter’s needs can prove to be a lot work. This is why some homeowners hire a property management company to manage the property for them.
I’ve managed my own real estate when I was local to them, and then found a property management company when I relocated. I’ve had both good and bad experiences with property management companies. Fees tend to be the same within a geographic area so shop around to see what an agency’s experience is and what contracted services they might use for plumbing, snow removal and general repairs.
There are some pros and cons to outsourcing.
Pros
-It saves you time. One of the issues with managing a property yourself is that it can take up a lot of your time. A property management company can handle any issues that a tenant has and you won’t find yourself having to drive back and forth to the property to take care of it.
-They have valuable experience. No matter how long you’ve been renting your property, you probably don’t have as much experience as a property management company. Their experience can prove to be very beneficial when there are difficult tenant issues that you otherwise wouldn’t know how to handle.
Cons
-It can cost a lot of money. Property management companies don’t tend to be cheap. This means less money that you have in your pocket from the rental.
-You have to really trust the property management company that you choose. Not a lot of homeowners are comfortable trusting someone else 100% when it comes to managing their rental properties.
Before deciding to use a company, make sure you do your research and figure out whether or not it’s cost effective to use one. For many homeowners the money spent is well worth the time and hassle that they save.
