Now that you have taken the dive into investment real estate, you need to decide if you would like to hire a property management company. There are a few factors that should be considered before you make this important decision. Here is a brief explanation of the inner workings of property management companies from the real estate attorney Las Vegas investors trust most.
Why Property Management?
A property management company will manage the details related to filling your investment properties so you don’t have to. A good management company will collect rent, handle maintenance and repairs, and address any complaints from your tenants. If necessary, they will even evict a tenant for you. Property management companies will do all of this as an independent contractor so you will not become an employer.
Is It Time to Hire a Property Manager?
While property management may be an expensive service, there are definite advantages to using one. Ask yourself these questions to see if property management is a good fit for you:
- Do you have a lot of rental properties or units? If you own many properties, it can be a headache to try to manage all of them yourself.
- Do you have investment properties in a different state? If there is a large distance between you and your properties, hiring a property management team may be a wise decision. There are some landlord-tenant issues that you just won’t be able to take care of long distance.
- Do you want to be a hands-off landlord? If so, hire a property management company with the help of the best real estate lawyer Las Vegas offers.
- Do you have a tight schedule? If real estate investing is something you do on the side of full-time employment, you may want to consider a property management company. This is also wise if you are a full-time investor who wants to focus more on building your business portfolio.
- Can you afford it? In most cases, property management companies will charge a fee that can range anywhere between 5 and 10 percent of the rental income.
- Is your business growing? As your business expands and you acquire more properties and units, there may come a time when you feel there is just too much on your plate. A property management company can relieve some of the stress by absorbing some of the more time consuming management tasks.
- Do you want to avoid becoming an employer? Instead of a property management company, you might hire a resident property manager or other employees to help manage. While this may be a less expensive option, it can come with more frustrations. As an employer, you will have to worry about payroll, taxes and employee related insurance. You can avoid all of that by hiring a property management company.
- Do you have property that is part of an affordable housing program? Landlords with properties that are a part of an affordable housing program receive financial assistance on behalf of their tenant from the government in a number of ways. The only way to qualify for such incentive payments is to meet a long list of complicated rules. A property management company that has experience with affordable housing programs can be an invaluable asset.
If using a property management service sounds like the way to go, make sure you choose the right one. Schedule a consultation with the best real estate lawyer Las Vegas offers at Marc Simon Law for assistance. For more information about this Las Vegas real estate lawyer, contact 702.451.7077 or info@marcsimonlaw.com.
