Should You Hire a Property Manager? Explore the Pros and Cons

Hiring a property manager can be a tough decision, especially if you are new to property management or have had a less-than-ideal experience with one before. The hiring choice has both benefits and challenges, depending on your situation. If you are familiar with fair housing laws, self-management may feel easier. However, if your property needs extensive updates or you are overwhelmed with tasks related to it, hiring a local property manager or a property management company might be the best solution.  

As a property owner, you may be grappling with whether it is worth considering the assistance of a professional property manager. Property management can alleviate many of the challenges you face when managing your own property. However, we understand the importance of understanding all the pros and cons before making this decision. Here is what you can consider when deciding whether to hire a property manager.  

What to Expect from a Property Management Company 

A property management company acts as a liaison between the property owner and residents, handling all day-to-day tasks and responsibilities associated with property management. Their main aim is to maximize the property’s value, ensuring resident satisfaction and providing the owner with peace of mind and a hassle-free property ownership experience. Here are some key responsibilities of a rental property manager or a property management company: 

1. Resident Management  

• Advertise vacant units to attract quality residents 
• Screen and select residents through background, credit, and reference checks 
• Draft and implement lease agreements, set rental rates, and manage rent collection 
• Quick response to resident complaints, concerns, and maintenance requests 

2. Risk Management  

• Manage insurance claims effectively to address property damage or liability concerns 
• Implement risk mitigation strategies that include property insurance and security measures 

3. Record Keeping  

• Track income and expenses accurately to maintain accurate financial documentation 
• Keep records of all property-related transactions 

4. Property Inspections and Reports  

• Conduct regular property inspections and identify maintenance needs 
• Provide property owners with detailed reports on performance, income, and expenses for transparency 
• Ensure each property meets all relevant standards, fostering a safe and compliant environment for residents 

5. Lease and Lease Renewal Management  

• Manage lease renewals and negotiate favorable terms with existing residents 
• Ensure all lease agreements are current, compliant, and legally valid 

6. Legal Compliance  

• Stay informed about homeowner-resident laws and regulations 
• Ensure compliance with local, state, and federal housing laws 
• Manage eviction processes if required, following legal requirements 

7. Resident Relations  

• Build strong relationships with residents to encourage lease renewals and improve retention 
• Respond promptly to resident inquiries, concerns, and resolve disputes efficiently 

8. Financial Management  

• Set and adjust rental rates to optimize income and stay competitive in the market 
• Manage the property’s budget by tracking income, budgeting expenses, and providing regular financial reports to the owner 
• Collect and deposit rent payments on time 
• Manage security deposits, making appropriate deductions when necessary 

9. Property Marketing and Advertising  

• Create and implement effective marketing strategies to attract potential residents 
• Ensure strong online and offline visibility for property listings 
• Perform market research to stay competitive with rental rates and latest property features 

10. Property Maintenance 

• Inspect the property regularly to identify maintenance and repair needs 
• Hire and supervise maintenance staff, contractors, and repair services 
• Manage and schedule routine maintenance tasks such as landscaping, cleaning, and HVAC servicing 
• Respond swiftly to emergency maintenance issues 

Pros of Hiring a Property Manager 

Let us explore the advantages of hiring a professional property manager and show how their expertise can help streamline operations, maximize returns, and offer you peace of mind: 

1. Expertise and Experience

By hiring a reputable and experienced property manager, you can access their wealth of expertise and in-depth industry knowledge. These professionals possess a keen understanding of the local rental market dynamics, including prevailing rental rates and market trends. Moreover, they are well-versed in the complex web of property laws and regulations, ensuring that your property remains fully compliant and minimizing the risk of legal entanglements that could prove costly and time-consuming. 

2. Time and Convenience

One of the primary advantages of engaging a property manager is the significant amount of time and effort it can save you. These professionals undertake a range of crucial tasks on your behalf, such as conducting thorough resident screenings, preparing and executing meticulous lease agreements, and managing the collection of rental payments. By delegating these responsibilities to a competent property manager, you can redirect your precious time and energy towards other important aspects of your life or business, alleviating the burden and allowing you to achieve a healthier work-life balance. 

3. Marketing and Resident Management

Property managers possess the necessary expertise and know-how to effectively market your property, employing various strategies to attract a pool of potential residents and minimize vacancy periods. Through their comprehensive resident screening processes, which often include thorough background checks, credit assessments, and employment verifications, property managers ensure that only qualified and reliable individuals are selected as residents. Furthermore, they handle the collection of rental payments and manage any necessary eviction procedures, shielding you from the stress and strain of difficult resident situations and potential legal disputes. 

4. Property Maintenance and Inspections

Maintaining a property in optimal condition and promptly addressing any maintenance or repair requests is a critical aspect of successful property management. Property managers take on the responsibility of conducting regular property inspections, carefully documenting the condition of the premises, and promptly addressing any issues that may arise. Leveraging their vast network of trusted contractors and vendors, property managers ensure that any necessary repairs or maintenance work is carried out promptly and efficiently, safeguarding your investments’ long-term value and appeal. 

Cons of Hiring a Property Manager 

Let us understand the challenges of hiring a property manager:  

1. Cost

While there are undeniable advantages to hiring a property manager, it is essential to consider the associated costs. Property managers typically charge management fees, which can be calculated as a fixed amount or as a percentage of the rental income generated by your property. Also, there may be additional charges for maintenance and repairs. It is crucial to carefully evaluate the potential costs and ensure that they align with your budget and overall financial goals before committing to hiring a property manager. 

2. Lack of Control and Communication

Entrusting the day-to-day management of your property to a professional property manager inevitably entails relinquishing a certain degree of control over decision-making processes. It is important to have faith in the expertise and judgment of your property manager and establish effective communication channels to stay informed and updated on all property-related matters. Ensuring that you and your property manager are aligned in terms of goals, expectations, and responsiveness is crucial for maintaining a harmonious and productive working relationship. 

3. Trust and Reliability

Handing over the management of your property to a third party necessitates a foundation of trust and reliance on their professionalism and ethical conduct. It is imperative to conduct thorough research and due diligence to select reputable property management services. While most property managers are diligent and reliable, there is always the possibility of encountering unscrupulous or unprofessional individuals or firms. Being vigilant and selecting a trustworthy property manager is essential to safeguarding your investment and ensuring a positive property management experience. 

4. Resident-Property Manager Relationship

Establishing and maintaining a positive and productive relationship between residents and property managers is crucial for the smooth operation of your rental property. When a property manager acts as an intermediary between you and your residents, it can create challenges regarding personal rapport and effective communication. Different communication styles, expectations, and approaches to problem solving can sometimes lead to misunderstandings or conflicts. Setting clear expectations and maintaining open lines of communication can help mitigate such challenges and foster positive resident-property manager interactions. 

Here is a comparison table outlining the pros and cons of hiring a property management company: 

By thoroughly evaluating your circumstances, property management needs, and personal preferences, you can make an informed decision that aligns with your goals and interests. Ultimately, the decision to hire a property manager should be based on a thorough understanding of the advantages and disadvantages, helping you to find the most suitable course for your property management journey. 

Why is BFPM the Top Choice for Exceptional Property Management Services? 

BFPM is an exceptional choice for property owners seeking reliable and professional property management services. With a team of experienced and trained property managers, BFPM offers tailored solutions to meet the unique needs of each property owner. Our comprehensive range of services covers all aspects of property management, from resident management to maintenance coordination.  

At BFPM, we pride ourselves on transparent communication, proactive property maintenance, and a commitment to excellence. By choosing BFPM, property owners can trust that their investment will be managed with the utmost professionalism and care, providing them with peace of mind and optimal returns. 

Feel free to contact us at BFPM for any inquiries about property management.