When to Hire Third Party for Property Management

Property Management

Very often, home owners find their homes stagnant in a slow home market. They find limited options to use their property. Their options are limited as they can either rent their house or compromise with the loss if the house is vacant. Renting is a great option if done properly. The largest drawback of renting is that sometimes you get tenants who do not take care of your house or do not pay rent. Sometimes, this situation ends up in costly litigation. The only way to avoid such cases is to give your home on rent only to those people whom you know personally. A more realistic approach to this situation is to hire the services of some property management company.

The task of a property management company is to check the credit worthiness of all the potential tenants. It also takes care of the repairs work of the house during the tenancy period. It will collect rent from the tenants, will enforce rules and make sure that the interests of home owners are protected. They take the suitable decisions in the absence of homeowners.

You should carefully select the property management company. First of all, you should consult your real estate agent who is handling the sale of your property. It is trickier to rent a home that is for sale. It means that some tenants do not like potential buyers to walk through their home while they are living there. Secondly they also do not like the idea that they may have to vacate the house unexpectedly. In case, you are facing the same problem, your real estate agent can act as property manager for you. The agent has all the information about your house and he can arrange such tenants for you who will be cooperative while potential buyers visit the house and they will also maintain the house in good condition.

In case, your real estate agent is not working with some real estate agency or he do not do rental management, then you should hire the services of some trusted property management company. It is your decision to hire the services of real estate agent or property management company. However, you must understand the serviced offered by them. You should know how they arrange tenants and screen them, how they handle the collection of rent and repair issues of home. You should make proper agreement with them about how they should act in your absence.

You will have to pay a portion of your rental income to your property manager in return of his services. However, it is better to give a portion of income rather than sacrificing the whole income, if the house remains vacant. It gives you the chance to earn some income by the time you find suitable buyer for your property.