Choosing Property Management: A Guide for New Landlords

Selecting Property Management can be a very involved process and may vary immensely depending on ones needs and objectives. When selecting property management, here are a few things to consider, along with a few observations and recommendations that may help in the process.

First, are you a first-time Landlord/Investor? If so, this process can be somewhat overwhelming as there are many variations on property management and the services that are being offered by these companies.

As a first-time Landlord, you will need to consider what your long and short-term objectives are going to be. Are you looking to use this property for long-term income or to pay off the mortgage and then sell? Are you looking to add additional property to your inventory down the road? Are you only looking to rent because you do not want to sell. Are you the type of Landlord who wants a total hands-off approach or a Landlord who wants to be active and somewhat involved?

Each situation noted above can lead to needing different types of services and receiving a different set of benefits.

Full Service or Select Services

If you want to be totally hands-off and have no interaction with your tenants, then this may lead you to need a full-service property management company, where everything is done for you for a regular monthly and annual fee structure. In these circumstances, you leave all decisions up to the management company on your behalf, and they, in turn, send you rental payments and service fees monthly, bi-monthly, or quarterly, along with subtracting any misc expenses for repairs or services rendered on your behalf. Again, these types of services are what may be most viable for anyone wanting a totally off-hand approach to being a Landlord/Investor.

Are you the type of Landlord/Investor more involved and or more interested in their investment property’s profit and loss margins? For these types of Landlords/Investors, you may still want property management services but one that can cater to your specific needs and wants and, at the same time, reduce your overall monthly/annual expenses and increase your overall profit margins, etc. and still provide you with the end results you want but at a much-reduced cost over the long term.

Again, when selecting whichever type of services you feel works best for your needs, always ask as many questions as possible to make sure the services you are receiving are the services you want or need for your overall objectives, both long and short term.

Each Landlord/Investor will have different needs so make sure to find the most viable option that best fits your needs when selecting a property management services as they will vary considerable.

Stay tuned to our blog for additional postings on this topic and many others in the weeks/months to come.