Twenty-six percent of small businesses outsource to get help from an expert.
Partnering with commercial management companies can be a smart move for a real estate investor. A property manager can help you find tenants, collect rent, and handle maintenance requests.
However, you may not be aware of all the fees they charge or what they're doing with your money. Or, you may not be comfortable with them being the only point of contact for your tenants.
If you are wondering about the pros and cons of partnering with a commercial property manager, this short and simple guide is for you.
Pro: Outside Expertise
The most obvious benefit to hiring a commercial property management company is their expertise. Property managers know about the local market, the legalities of leasing, and how to manage your investment portfolio.
They can help you avoid making costly mistakes and can help you deal with any problems that arise. If you are an inexperienced landlord or property owner, this is a tremendous benefit.
Con: Less Control
Hiring a property manager in the Coachella Valley, California, area means you are giving up some control. They will have their own opinions and ideas about how things should be done, which may not always coincide with yours.
This can be especially true if they want to make changes that benefit them but not you or your tenants. While this is not always a bad thing, it's frustrating to have someone else making decisions that impact your bottom line.
Pro: Less Day-to-Day Stress
With property management, there are a lot of moving parts that can be overwhelming. You need to worry about leases, getting rent payments from tenants on time, repairs, and maintenance issues when they arise, and so much more.
It can be staggering if you're not used to dealing with these things. Hiring a property manager means they will handle all of this for you so that you don't have to.
Con: Higher Fees
Property management companies charge a fee for their services. These fees can be about 8% - 12% of your rent income each month.
This is on top of any other expenses you have as a landlord, such as repairs and maintenance costs, taxes, and insurance premiums. If you're a landlord who doesn't have a lot of money to spare, this can be an issue.
Pro: Access to Resources
Property management companies in the Coachella Valley, California, area have access to resources that individual landlords do not. These include a team of professionals who can help you with all aspects of managing rental properties.
They also have access to software and databases that help them keep track of tenant information and financial records. This saves you time and effort, which means more money in your pocket.
Commercial Management Companies Can Be a Tremendous Help
There are pros and cons to hiring commercial management companies to help with your rental property. It's important to weigh these options and make a decision that's right for you.
PMI Coachella Valley can help you decide if a property management company is right for your needs. Contact us today to get started!