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I have talked with lots of investors who’ve sold their properties and moved their funds into other asset classes like stocks or bonds simply because they think rental properties are far too big of an headache. The scenario is always the same. They made the decision to invest their money, they heard rental properties were a nice income makers, they purchase a few properties, and then manage them by themselves.

Pretty soon they may be burned out of coping with tenants. After a number of bad experiences and lots of calls from renters, they choose that rental property is far too big of a headache plus they sell out. I have heard this at the very least a handful of times every time I hear this I always ask “Why didn’t you let a house management company handle your properties?”.

Most almost daily I get an answer of “well you pay way too much”. In truth, most property management companies charge between 8-10% of gross rent collected for residential properties and 3-5% for commercial. This can be a fee to purchase what you’ll get.

There is often property valuers Essendon between a property manager and a house management company. When you hire home manager you happen to be hiring a worker. You will have to pay them back a salary and pay payroll taxes on them. When you hire a property management company you might be simply outsourcing the management to some company. They are not an “employee” of yours.

In most cases I lean towards getting a company as an alternative to signing up for a staff. If you only own a few properties you’ll only work with a company since you won’t have sufficient income to support an employee’s salary. At some point, if you achieve adequate, it could be in your best interest to employ a person whether full-time or part-time.

Here’s some great benefits of hiring a house management company when you start purchasing rentals.

A professional property management company knows legislation for landlords and may make sure you might be doing everything legal

A professional property management company knows how you can most effectively advertise your properties to accomplish a low vacancy rate

They will also know how to maximum benefit rent of the property because they have in mind the market

They will have a network of contractors for top level rates for repairs and maintenance on your properties

You can learn from their wealth of knowledge and experience from working with rentals

You might wish to manage the properties yourself. Many people do. If that’s everything you like plus you’ve got enough time, there’s certainly nothing wrong with this. But don’t forget you can study a lot from employing a professional company.

You may wish to get references before picking which company to go with. Also, make certain they have got their real estate property license. You also want a company who concentrates on your sort of property. For example, you’ll not pick exactly the same company for any commercial property as you would just one home.

The bottom line is in order to be an investor or do you need to certainly be a landlord. Personally, I don’t want to be described as a landlord so I use property managers.

Happy investing!