One of the first questions you may ask yourself once you have purchased an investment property is “Should I hire a property manager or manage the property myself?”.
While many owners may feel that the monthly management fee is just a waste of money, the truth is a great property management company can be worth their weight in gold and save the owner a substantial amount of money in the long run.
Once an owner has invested in a rental property, the responsibilities associated with managing the property can become quickly become overwhelming. Furthermore, the owner may realize that he/she just does not have the time to handle all of the issues that arise when managing a rental property.
So what can an owner expect to receive for the management fee that they pay each month? Below are some of the benefits you can expect to receive by working with a property manager:
- The number one advantage to using a Utah property management company is the time the owner will be saving. There is a lot of work that goes into finding a tenant for a property and getting it rented out, including marketing the home, showing prospective tenants through the home, running a qualified background and credit check, following up with past references for the applicant, and signing the lease agreements. After the tenant has moved in, there is a substantial amount of work required, including: collecting rent each month, handling all maintenance issues associated with the property, and performing periodic inspections.
- Property Management companies are also very valuable resources with regards to knowledge of the industry. A good property management company will be well versed in local, state, and federal regulations. By keeping the property in compliance with these rules and regulations, a property manager will help protect the owner from any lawsuits. In addition, a great property management company will have an expertise on rental rates within that market. If an owner has not completed the proper research, he/she may cost themselves thousands of dollars in potential rental income.
You may think that you do not need to hire a property management company and that this will not require a lot of effort, but I implore you to ask yourself these questions:
- Do I have the time the required to manage this property and dedicate the effort that this will require?
- Do I have an understanding of all of the rules and regulations that are associated with managing my rental?
- Do I know the maximum rental rates for my property?