Congratulations! Now that you’ve made the choice to rent out your property, think about whether it’s best for you to take on the role of landlord and manage your rental yourself, or hire a property management company for help.
Depending on your skills, free time, and experience, it may be best to hire a property management company if:
1. You’re not up for the detailed organization and upkeep of managing a property.
City ordinances, affordable housing programs, and local practices can overwhelm some landlords when it comes time to rent.
2. You’re not sure how to draw up a rental agreement, or run the proper background checks.
Management companies will perform the necessary credit and background checks on possible renters, and will supply the legal agreements as you enter into your new landlord/tenant relationship.
3. Your daily life keeps you busy and you’d like to leave the management tasks to professionals.
Being a landlord can be a breeze one month and require more hours of troubleshooting and on-site visits the next. If you maintain a full-time job and have a busy schedule, you can pass along these tasks.
4. You may be renting out several properties, but you’re not looking to make “landlord” your day-job.
If you’re looking to take on several properties, a property management company can definitely help with the volume.
5. You’re not going to be living nearby.
Many savvy homeowners who are moving out of town will choose to rent out their home instead of selling. But being far away can prevent a landlord from being able to show the space, meet potential tenants, or do home repairs.
6. You’re not looking forward to taking on the risks associated with managing a property.
If the thought of tenants missing payments, finding new tenants, or dealing with unexpected home repairs makes you cringe, there’s an easier way to meet your real estate and renting goals.