Managing Your Own Property Vs. Hiring a Property Management Company

If the only property you own is a primary residence, there’s a very good chance you’ll simply manage it on your own. But if you decide to invest in real estate or your want a little passive income on the side from rental or commercial properties, there are several reasons why hiring help to manage your properties could be in your best interest, especially if you’re an absentee (i.e. out of area) landlord and you’re not keen to make frequent trips to inspect sites, collect rent, hire contractors (like plumbers, electricians, etc.), and deal with disputes, just for example. On the other hand, using a property management company will certainly dip into your profits. So you’re looking at a case of convenience versus cost, to some degree. However, your mind may be more easily made up when you consider some of the potential benefits and drawbacks of each position.

Managing your own property will spare you the cost of hiring a property management company to do the job for you, which is perhaps the biggest benefit associated with this somewhat thankless task. But you’ve almost certainly put money into property as a means of earning passive income, so giving some of it up to a management company can definitely stick in your craw. And in some cases it could wind up being more than what you’re earning on the property in the first place. So if you happen to live in the same area as the properties you own and you’re not opposed to being on call to handle tenant complaints, collect rent as needed, and inspect your properties regularly to make sure that they are receiving proper maintenance and that tenants aren’t trashing them, then there’s really no reason to hire a property manager for the job.

That said, there are also several factors that may make hiring a professional your best move. The main reason to hire a property management company is if you live too far away to make regular visits impractical (i.e. too expensive and time consuming). Even if you live nearby, you simply may not have time to manage the concerns of multiple tenants or properties, especially if you also have a day job to deal with. Think about all of the work that you put into maintaining your own home. Do you really have time for the demands of a dozen other properties? Property managers are paid to deal with all of the headaches for you, including inspections, repairs, maintenance, and even collecting rent and finding new tenants to fill empty spaces, depending on your agreement.

Of course, there is cost to consider, and you’re looking at time or money. If you have the time and you’re so inclined, there’s no reason not to manage your properties yourself. Heck, if you have enough it could become your full-time job, and pay pretty well. However, you don’t necessarily have to go this route if your properties are generating enough cash flow to pay for a management company and then some. Remember, you can always call up the pros at Revid Realty to sell off any parcels that are under-performing. But if you have the cash, you can save yourself a lot of time and hassle by hiring a property management company to help ensure that your investments generate ample profit.

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