When becoming a landlord, choosing which investment property to purchase may seem like the biggest decision to make. In actuality, the most important decision is who will handle the day-to-day operations of the property as this will determine the overall success of your rental.
Some may wonder if it would be more beneficial to take responsibility for owning, running, and managing an investment property, rather than rely on a management company instead.
This is not an easy decision to make. With the many benefits of using a property management company in Seattle, there are some disadvantages to be aware of as well. Learning more about the advantages and disadvantages of property management can help determine which option is the best fit for you.
The Pros of Hiring a Property Management Company in Seattle
Vacancies are Quickly and Efficiently Filled
Every day that your investment property remains vacant, money is lost. Property management companies have the experience needed to quickly and efficiently fill those vacancies.
A property manager oversees everything that is involved with filling a vacant unit or property. They are responsible for advertising the vacant property, prepping the property for showing, determining the best rental rate, screening tenants, completing all paperwork, and helping with the move-in.
By completing all these tasks for the owner, the property management company not only prevents money loss but saves time as well. If the owner were to self-manage their own investment property, they would be responsible for completing all tasks listed above on their own.
Experience with Local, State, and National Rental Laws
There are several local, state, and national laws that must be followed when becoming a landlord. Landlords need to make sure they are acting within the specific guidelines and parameters outlined by these laws. Unfortunately, because there are so many laws – some of which are very specific in how they need to be followed – it can be easy to break them unknowingly.
Property managers with rental management companies study everything from fair housing laws to local and state landlord/tenant laws and ordinances. These companies also make sure that their managers stay up-to-date on changes that occur to the laws by offering continuing education courses and lectures.
Access to Entire Network of Contractors and Vendors
Property management companies have access to an entire network of contractors and vendors who can help with routine or emergency maintenance requests. These companies have taken the time to verify that not only are the contractors and vendors licensed and insured but that they can complete quality work in a timely and affordable manner.
Maintenance requests with a property management company are resolved quicker than an individual request because all contractors and vendors in the company’s network have already been verified as licensed and insured. If an individual were to self-manage their own investment property, every maintenance request – whether routine or emergency – would have to be treated almost like a single “Do-It-Yourself” project. They would have to research contractors and vendors, verify they are licensed and insured, and then get a quote for that single project.
With a rental management company, when a routine or emergency maintenance request is submitted, the property manager will rely upon their extensive network of contractors and vendors to find someone who can complete the task.
Other Pros of Hiring a Property Management Company in Seattle
Other benefits of hiring a property management company in Seattle include:
- All day-to-day operations are handled by a third party – rent collection, tenant disputes, and fulfilling any maintenance requests
- More time for the individual
- Avoid having to personally complete any unpleasant tasks such as evicting tenants, cleaning vacant units, and addressing issues on the property
Cons of Hiring a Property Management Company in Seattle
Even though the benefits that come with hiring a property management company are extensive, there are still some disadvantages and drawbacks that need to be considered.
The Expense of Hiring a Property Management Company
Property management companies do not offer their services for free. Typically, there will be a monthly fee that is based upon the property’s monthly rent of the individual.
The idea of paying someone to finish and complete tasks that an individual can do themselves often makes people reluctant to hire a property management company. After all, paying someone else means your profits will be lower.
However, it’s important to consider that even though it may look like you are making less money, you could actually be making more with a property management company. Property managers can price units and property at competitive rates, collect rent, and fill vacant units quickly. By having experience with these tasks, your investment property could be more profitable than handling these tasks on your own.
Other Cons of Hiring a Property Management Company
Other disadvantages of hiring a property management company include:
- Less involvement in the property/community – the property manager handles all day-to-day tasks which means you are less involved with what is going on with your investment property
- Lack of commitment to an investment property – property managers are there to do their job. They aren’t personally invested in your property.
- Staff turnaround – some property management companies have a high turnaround when it comes to staff. You and your tenants will have to adapt to new staff as they come to your property.
The Key is to Hire the Right Property Management Company
Thanks to Seattle’s booming economy, now is the best time to become a landlord or expand your investment portfolio. It is important to hire the right property management company for your investment property. Hiring the wrong company could impact your bottom dollar and end up with a loss of money.
Contact Powell Property Management to see how our full range of rental property services can help make your investment property profitable. Call us today to receive a personalized quote for hiring a property manager.