Notes

Why Use a Property Manager?
I have talked with a lot of investors who've sold all of their properties and moved their money into other asset classes for example stocks or bonds given that they think rental properties are way too big of the headache. The scenario is always a similar. They made the decision to invest their money, they heard rental properties were big money makers, they buy a few properties, and attempt to manage them by themselves.
Pretty soon they may be burned out from managing tenants. After a number of bad experiences and lots of telephone calls from renters, they decide that apartment is much too big of the headache plus they sell. I have heard this at the very least a small number of times every time I hear this I always ask "Why didn't you let a house management company handle your properties?".
Most of times I get a response of "well it costs way too much". In truth, most property management companies charge between 8-10% of gross rent collected for residential properties and 3-5% for commercial. This is really a small fee to cover what you can get.
There is a difference between a property manager and home management company. When you hire a house manager you're hiring an employee. You will have to pay them back a salary and pay payroll taxes in it. When you hire home management company you are simply outsourcing the management to some company. They are not an "employee" of yours.
In most cases I lean towards employing a company rather than taking on a staff member. If you only own several properties you'll only engage a company when you won't have adequate income to aid a staff member's salary. At some point, driving under the influence large enough, it could be in your greatest interest to hire a person whether full-time or part-time.
Here's the advantages of hiring a home management company when you start purchasing rentals.


A professional property management company knows regulations for landlords and definately will make sure you happen to be doing everything legal

A professional property management company knows the best way to most effectively advertise your properties to realize a minimal vacancy rate

They will also know how to make the most rent of your property given that they have in mind the market

They will have a network of contractors to get the best rates for repairs and maintenance in your properties

You can learn from their insightful knowledge and experience from working with rentals
You should manage the properties yourself. Many people do. If that's everything you like plus you've got the time, there's certainly nothing wrong with that. But look at these guys forget you can study so much from using a professional company.
You should get references before picking which company to match. Also, ensure they have got their real estate license. You also want a company who concentrates on your sort of property. For example, you will not pick the same company for the commercial property while you would an individual home.
The bottom line is if you wish to be a venture capitalist or do you want to be described as a landlord. Personally, I don't want to be described as a landlord so I use property managers.
Happy investing!
My Website: http://www.masonre.com.au/