Owning rental property is a smart investment that can pay off for years to come. Unfortunately, if the property is not properly managed, you could end up losing money. A professional property management service could help ensure your property matters are handled. If you are unsure whether or not using a service would be beneficial to you, here are some pros and cons to consider.
One of the most difficult tasks a landlord faces is screening applicants to determine who is best suited for a rental unit. It can sometimes be challenging to weed out the good from the bad. A property management service can help with this task. The service brings experience in spotting red flags and the ability to quickly verify the information on an application.
Another benefit of using a property management service is that your tenant turnovers can decrease. If you have more than one rental property, keeping up with all of the needs of the tenants can be time-consuming and it is easy to get bogged down.
By contrast, a service has the resources needed to quickly address issues. As a result, tenants are more likely to be happy and stay longer.
Perhaps the biggest benefit to using a property management service is that you will have more free time. You do not have to worry about chasing rent payments monthly or even keeping up with repairs. The service handles every aspect of managing a property.
Even though there are benefits to using a professional property management, there are some drawbacks. For instance, you could possibly face unexpected fees for the services provided for situations that extend beyond collecting rent and managing repairs.
The problem is easily avoidable though. Request a copy of all possible fees so that you can be aware ahead of time what you are expected to pay for certain services.
Another possible issue is that property management services tend to follow a strict set of guidelines. The guidelines are in place to protect your interests, but can potentially work against you.
For instance, if a potentially good tenant does not meet the requirements, he or she could be turned away. At the same time, the service could end up leasing to a difficult tenant who just happens to have a clean record.
There are many other benefits to using a property management service. Schedule a consultation with a service like Kasten Real Estate to learn about those benefits and how they can apply to your particular situation.