Notes

Why Use a Property Manager?
I have talked with lots of investors who may have sold all of their properties and moved their money into other asset classes including stocks or bonds since they think rental properties are far too big of the headache. The scenario is obviously a similar. They made current debts invest their funds, they heard rental properties were a nice income makers, they buy a few properties, and then try to manage them on their own.
Pretty soon they are burned out of dealing with tenants. After several bad experiences and many messages or calls from renters, they choose that rental is excessively big of an headache and they sell out. I have heard this at the very least a handful of times and every time I hear this I always ask "Why didn't you let a home management company handle your properties?".
Most almost daily I get a response of "well you pay excessively much". In truth, most property management companies charge between 8-10% of gross rent collected for residential properties and 3-5% for commercial. This can be a small fee to fund what you can get.
There is often a difference between a property manager and home management company. When you hire a home manager you might be hiring a staff member. You will have to pay them a salary and pay payroll taxes to them. When you hire a property management company you happen to be simply outsourcing the management to some company. They are not an "employee" of yours.
In most all cases I lean towards finding a company rather than signing up for a staff member. If you only own a couple of properties you'll definitely only engage a company since you won't have adequate income to support a staff's salary. At some point, if you get adequate, it could be beneficial for you to engage a person whether full-time or part-time.
Here's some great benefits of hiring home management company when you start purchasing rentals.


A professional property management company knows the law for landlords and definately will make sure you're doing everything legal

A professional property management company know how you can most effectively advertise your properties to attain a minimal vacancy rate

They will also know the way to get the most rent of an property since they have in mind the market

They will have a network of contractors for top level rates for repairs and maintenance on your properties

You can learn from their useful knowledge and experience from coping with rentals
You might wish to manage the properties yourself. Many people do. If that's everything you like along with the time, there's certainly nothing wrong your. But don't forget one can learn so much from using a professional company.
More hints should get references before picking which company to choose. Also, make sure they have got their real estate property license. You also require a company who focuses on your kind of property. For example, you will not pick exactly the same company for the commercial property because you would a single family home.
The final point here is if you need to be a venture capitalist or would you like to be a landlord. Personally, I don't want to certainly be a landlord so I use property managers.
Happy investing!
My Website: http://www.masonre.com.au/