Years ago, property managers portfolios largely consisted of apartments, commercial space or multi family homes. The game changer in recent years has been the addition of single family residences that people cannot sell because of the market, so have decided to rent until things improve. For a while, the “landlord” of a single family residence often was the owner or a smaller property management company.
With the introduction of mega-investors in the market scooping up properties, who are moving their way into the single family homes market, it is making some changes for this niche. Some good - some maybe not so good.
Some things to keep in mind when looking for a big management company to handle your rental versus a smaller company:
The larger the portfolio a company has – the larger the margin of human error for managing your property – which could cost you money. In some respect, this also applies to all management companies - think about it - how much personal service will you and your tenant receive from a company that manages even 300 homes compared to one that manages 100?
Renting becomes a “template” and “grid” vs. renting to quality tenants that have been interviewed.
Fees. The bigger the company, the more the expenses, the higher the costs, the more fees passed on to owners.
Renting commercial property is very different from renting single family residences. Single family residences require lots of hands on management. Commercial properties – not so much since tenants are largely responsible for repairs, etc. Be cautious of a large commercial company moving into the residential arena – ask lots of questions and do your homework before signing on with anyone.
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 .