As a rental property owner, you may have found yourself in a situation where you're unable to manage your rental property on your own. It may be because you don't have the time, or the knowledge, or you simply don't want to deal with the day-to-day responsibilities of managing a rental property.
However, not all property management companies are created equal, and finding the right one for your needs can be a daunting task. There are a few key factors to consider, such as honesty, reliability, knowledge, and responsiveness. But beyond these factors, you also need to consider the type of PM company you choose.
There are three types of PM companies out there, each with its own pros and cons. Understanding these types can help you make an informed decision about which company is the right fit for you.
The first type of PM company aims to reduce upfront costs. This can be a good option if you're trying to reduce the initial cost. However, this approach may come with higher risks in the long run. For example, the company may not install missing gutter extensions.
Or the company may not notify you about the 25-year-old furnace that is making noise. This could lead to higher overall costs in the future as the repairs may become more extensive.
The second type of PM company prioritizes minimizing risks. This approach can be ideal if you're looking for peace of mind and want to minimize the chance of issues arising with your rental property. However, this approach may come with higher initial costs, as the company will install the gutter extension, and may ask you to replace an old noisy furnace
The third type of PM company will consult with you so you can make all the decisions. This can be a good option if you have the expertise and time and also like to be in control. However, this approach requires more involvement on your part, as you'll need to make all the decisions and manage the day-to-day responsibilities yourself. Also, it defeats the purpose of hiring a PM company.
So, which type of PM company is the right fit for you? It ultimately depends on your needs and preferences. If you're on a tight budget, the first type of company may be a good fit, but be prepared to have bigger headaches and cost in the future. If you want to minimize risks, the second type of company may be a better fit, but be prepared to pay more upfront. If you have the expertise and time to manage your rental property but want the PM company to bring options to you, the third type of company may be a good fit.
In summary, when choosing a property management company, it's important to consider the type of company you're working with. Each type has its pros and cons, and it's important to weigh them against your needs and preferences. By doing so, you will reduce frustration and can find a company that will help you manage your rental property effectively and efficiently.
