9 Questions to Determine the Need to Appoint a Property Management Company

Whether you need to appoint a property management company, for efficient management of the rental properties you own, depends on a number of factors. Assessing your circumstances is necessary before making any decision in this regard. Here are the nine questions that you need to find answers to in order to make a well thought out decision.

Question 1: How many rental properties do you own? If you own more than one rental properties in different parts of the city, managing them single-handedly may be too overwhelming for you. It may also become a constraint on acquiring new rental properties.

Question 2: How far do you live from the property? If you live near your rental property, you may handle the management of the property on your own. However, if you live far away from the property and do not have time to pay regular visits, you may have to appoint a company for property management.

Question 3: How efficient are you at renting out the units? Advertising and marketing properties are not as easy as you think. Finding the right tenants, screening them, drafting lease agreements, and such other tasks require specialised skills.

Question 4: How much experience do you have in handling maintenance and repair? Inspecting the building regularly and arranging for any repair or maintenance work is an important part of managing a property. If you fail to do this on time, a small maintenance problem may assume the shape of a big issue.

Question 5: How much time can you devote to property managing tasks? If you are very busy with personal or professional tasks you may not have adequate time for managing a rental property. This lack of time and attention may lead to disastrous results.

Question 6: How much proficiency do you have in maintaining records? Maintaining and updating all accounts related records is part of property management. If you have a number of rental properties, it may become a huge task. You can hire an accountant for the job or let a management company handle it on your behalf.

Question 7: How extensive is your knowledge of the laws? The laws governing the rental properties may be quite complicated. A property management company has the knowledge to evaluate, advertise and rent out a valuers property according to the legal guidelines.

Question 8: How do you handle problems? Whether it is a tenant that refuses to pay or a tenant that gets into a fight with a neighbour, the problems that may arise may be quite troublesome to the property owner. If you do not have the right skills or the necessary experience for these matters, it is better to seek help from professionals.

Question 9: How well do you handle stress? While this question seems to be inconsequential, it is one of the most important things to consider. You must consider property managing only if you are capable of handling the difficult situations that may arise.

Answering these questions will help you determine whether you need a property management company or not. Another aspect you need to focus on is the cost of appointing a company. If you have the skills, experience and time to handle these tasks, you may not require these services.