For the average person or new investor who isn't familiar with property managers, they tend to believe things that have heard about property management companies. If you are considering hiring a property manager, it's a good idea to learn the difference between what's really true over things you've "just heard about".
A few truths about the myths:
Property managers cost a lot of money. It depends on how you look at it. If you think that 10% of the monthly rent costs more money than no rent at all, bad tenants, damaged property, lawsuits,etc., then ok, it's true. But look at it this way, on average, an owner spends $1200 per year (based on $1000 a month rent) for a property manager. So, what really costs more?
Property managers will rent to anyone. A bad one will. Truth is property managers want the least amount of headaches and problems - the best way to do that is to rent to qualified tenants. Property managers know how to screen tenants and have all the the tools most DIY do not have or worse, do not want to spend the money to use.
Property managers "nickel and dime" owners. Honestly, some do. Bottom line, if you look for cheap - you get cheap. And it all comes with a price. Be cautious, if a manager charges 5% of the monthly rent - then there is a good chance there are a ton of hidden fees. Read contracts carefully before you sign up for "cheap".
Once you hire a property manager - you never hear from them. If you hire a bad company - likely you will have little or poor communication. If you hire a good company - the odds are - you will receive good service. Ask a lot of questions and get references!
Cheap comes with a price as does not knowing the facts - whatever you decision is about managing property - make sure what you have heard is really the truth!
This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .