You’re a landlord. Maybe you’re new to this game. Perhaps you’re an experienced, seasoned professional in your own right but something has changed lately. Maybe you’ve been getting along fine on your own or with a single employee in the office taking care of everything, but she has moved on. Then again possibly you may have just acquired a new property and have no idea what to do with it.
Transitions are points of decision making. This article will help you come to the right decision for you and your business. Maybe a professional Dallas property management company is for you.
Seek first to understand.
Take an honest look at yourself, your work ethic, your current commitments, and a look at your pocketbook. A professional property management company will expect 3-10% of the rents you’re collecting for their fee or possibly charge a flat fee. Is it worth it? What will you do with all the free time created by hiring someone else to take care of everything? Can you make more money doing something else with that time? Would taking those stresses off pay off in ways money can’t address?
“What do I get for my money?”
A professional property management company will:
- Interface (create space) between you and the tenants. If you’re an introvert or just don’t like people, this can be extremely valuable. If you’re good with the money, great with numbers, but people drive you batty, maybe you’re a yes.
- Market and advertise your rentals. They may have expertise in this field that you lack. If you have been having a lot of unrented units and don’t know why they may have a solution.
- Show properties to prospective renters. You won’t have to interrupt your day to make an appointment to show a rental to a possible renter.
- Professionally screen the applicants.
- Collect rent and deposit it in your bank account.
- Handle maintenance and deal with contractors. They are likely to have a great deal of experience in this area which can prove invaluable if you’re a new landlord.
These would all be very valuable services if:
- You have a lot of properties. The more you have, the more complex and time-consuming they will become.
- You’re far away from properties you own. This automatically makes you more of an investor and employer of an onsite property manager.
- Your business or other aspects of your life have gotten very busy suddenly.
- You don’t want to be an employer. Professional property management companies are independent contractors and take care of their own taxes, W2s, and other headaches from dealing with the state. They also police themselves, doing hiring and firing of sales personnel.
- Your property is providing Affordable Housing. The regulations, certifications, and inspections are incredibly complicated for providing affordable housing, as well as handling government grant money – all done by someone else.
- You’re simply too busy, disorganized, or uninterested in running everything yourself. These are all valid reasons, just as valid as more practical reasons, but they require much more self-honesty.
There are also very valid reasons not to hire a management company.
- You’re very detail oriented, even calling yourself a control freak at times. You have a hard time letting go. This business can be your own little empire and maybe give space to your family members who are taking the heat when you have nothing better to do.
- You genuinely don’t have enough profit margin to hire someone to take on the day to day running of the business.
- You need to maximize cash flow for a while to pay for a new roof (or that trip to Tahiti.)
- You have plenty of spare time to devote to your rental business.
- You only have a small number of properties.
- You’re not employed. You have plenty of time and motivation to devote to being a landlord.
- You really just love people. So very much.
All facetiousness aside, doing it yourself is a valid choice, and there is a ton of information on how to do it on websites like Landlordology.
The real fundamental question to ask yourself to determine whether or not to hire a professional property management company is this:
Will hiring one provide me with peace of mind that I currently lack?
If you’re pretty content now, you’re probably fine, even if your business is ramping up. If it gets beyond what you can handle, the property management companies will be very happy to talk to you then.
If you envision your future with someone else handling what are headaches now, the question simply becomes “What is peace of mind worth? And what is my time worth?”
We have a free guide to helping you select the best Dallas property management company for you. Download the guide now.