Should I Manage My Own Property?
Investing in rental properties can be a great way to provide an ongoing income that is steady and relatively passive. Many real estate owners elect to manage their own rental property, which can be time-consuming and difficult, especially if the rental is not local. Another option is to hire a property management company, which will add to your expenses, but will relieve you of much of the work that landlords typically must perform.
The Many Responsibilities of Landlords
Depending on how many rental properties you have, the condition of each and the needs of your tenants, being a landlord can quickly morph into a full-time job, if you are not careful. Here are just a few of the things that typical landlords are responsible for:
- Advertising available rental units
- Answering inquiries about those advertisements
- Interviewing and screening prospective tenants
- Performing background and reference checks on potential tenants
- Creating and processing rental applications, lease agreements, and other documents
- Collecting rent, security deposits, and other fees
- Answering tenant inquiries and responding to problems
- Arranging cleaning, maintenance, and repair services for your rental property
- Handling legal matters like accidents and evictions
- Paying mortgage, insurance, and other fees
Whether you have one property or many, it often makes financial sense to consider hiring a property management company to handle day-to-day operations.
The Benefits of Property Management Companies
Property management companies are a great alternative for real estate investors who would prefer to have a more passive form of income or who are too busy to handle the work required to manage multiple rental units. When you contract with a property management service, the property manager will be responsible for most common rental tasks, such as:
- Advertising and renting homes and apartments
- Collecting rent and fees
- Bookkeeping and paperwork
- Handling tenant relations
- Grounds cleaning and maintenance
- Apartment and home repairs and maintenance
- Assistance with evictions and legal matters
The complete responsibilities of the property management company will depend on your contract and other agreements.
The Cost of Hiring a Property Management Company
Each property management company has its own fee structures, but they typically charge a small percentage of the monthly rental fee for each property they oversee, as well as a one-time placement fee whenever a vacant residence is successfully filled. Other fess may apply, depending on the company and the contract.
For many landlords, hiring a property manager is a cost-effective option because it frees their time for further investments and other activities and, with an active management team in place, they can be sure that the rental property is well-maintained and full of tenants.
Property Management Services in Maryland
If you are considering hiring a property manager for your real estate investments, consider our team at Tidewater Property Management. We are a full-service property management company that provides real estate sales, rental management, community association management, and repair and maintenance services for residential and commercial properties throughout Maryland.
Contact us at (443) 548-0191(443) 548-0191 to discuss our property management services and to schedule a consultation. At Tidewater Property Management, we can handle all of your rental property needs, from management to repairs and maintenance!