Renting Out Your Second Home? Here's When You Should Hire a Property Management Company
Do you own a vacation rental but don't have the time to manage it? Or perhaps you've recently inherited income property but you live miles away from its location?
Are you considering purchasing a second home as a nest egg to provide an extra source of income for your retirement or your family when you've passed on?
If you've answered yes to any of the previous questions, you may benefit from the services of a property management company. A team of experts can manage the rental property on your behalf.
Whether you're an absentee landlord or lack the time, experience, and interest to manage your rental property, these services can make life a little easier.
Read on to discover the duties and responsibilities that property management companies can help you with so you can make a confident decision.
When Should You Hire a Property Management Company?
If you don't want to take on the duties of a landlord, you might prefer working with a property management company.
These businesses work directly with tenants. They market rentals, collect the rent, deal with maintenance and repair problems, prepare apartments for new tenants.
They also address tenant issues and handle the eviction process. Property managers use their expertise to manage your property, so they can save you money and bring you peace of mind.
Below are some reasons to consider signing with a property management company.
1. You Don't Know How to Advertise Your Rental Property Properly
Sometimes, advertising on Craigslist with a couple of photos will just not do. Effective and experienced property management companies are familiar with the best advertising methods to find good tenants.
They'll not only attract and screen the right tenants for your market but also showcase your rental property.
Property management companies often use knowledgeable photographers and video producers to shoot professional-looking images and videos.
Good photographers use the appropriate lighting methods that make properties look presentable to the renter viewing your property. They also use wide angle lenses to get better shots of the rental space.
2. You're Unfamiliar with Rental Laws
An expert property management company keep abreast of the legal responsibilities required of landlords.
They are familiar with discrimination laws and know how to handle the legal eviction process if a tenant needs to be evicted for non-payment of rent, illegal activity, excessive disruptive noise, or lack of maintaining sanitary conditions.
These conditions — other than non-payment of rent — can motivate responsible tenants to want to vacate your building when you own a multiple unit dwelling.
This can mean the loss of payment of rent until the unit is deemed appropriate and ready to rent to a new tenant.
Knowledgeable property managers also know the tenant rights and laws regarding discrimination, entering dwellings for repairs, and other legal responsibilities that landlords must abide by.
3. You Participate in an Affordable Housing Program
If your property is part of an affordable housing program, the rules and regulations can get complex. As part of these programs, the landlord receives assistance from the government.
Assistance can come in the form of tax credits, a low-interest loan, or a grant. In return for renting a portion of the property to tenants certified as low income, the government might give you these incentives.
But landlords must comply with confusing and complex regulations to receive this assistance. It can be difficult and complicated to keep track of all the rules.
Many landlords find it helpful to work with a property management company that has experience in handling affordable housing programs.
4. You Can Afford It
Hiring a property manager is a viable option when you can afford their fees. Management companies charge between eight and 10 percent of your rent revenue for long term management and between 25 and 35 percent for short term.
5. You're Overwhelmed with Management Tasks
When you're a landlord, the management tasks associated with the building can multiply within a short period of time.
Examples include preparing and renting out vacant units, arranging for maintenance and repair, dealing with any tenant issues that arise, and managing the books.
When this occurs, it can be too much to take on for some landlords. To handle everything properly, you might find you need the services of a management company.
6. You Live Far Away
If you're an absentee landlord or live away from the property you own, working with a property manager to deal with emergency and unexpected issues can be invaluable.
This way, you won't have to fly out or drive long distances to handle the issues at hand.
7. You're Short on Time
Even when you don't mind working on your property on weekends or when you have free time, your landlord responsibilities can take time away from your business or family.
This can be of particular concern when you own another business or are employed in another career. When you want to spend time growing a new business, your landlord duties can distract you from your goals.
8. You're Not Interested in Being an Employer
If you hire a resident manager to handle your rental property, you'll need to be their employer. Therefore, you'll need to manage payroll, pay taxes, and manage healthcare for employees as well as perform a variety of other legal obligations.
When you don't want the responsibility of being an employer, hiring an independent property management company is a smart option.
Property managers work as independent contractors, so they and the people they hire will not be considered your employees.
Is Hiring a Property Management Company Right for You?
You can try to manage your rental property on your own, but it won't be easy. Being a landlord without help can turn into one endless pounding headache.
If you'd rather avoid the aches and pains, consider hiring a knowledgeable property management company for some relief.
Interested in learning how to make your vacation property stand out from the rest? Read our post to find out more! Or contact us today to list your property with Venture Yours. We also provide long term management services