Notes

Why Use a Property Manager?
I have talked with a lot of investors who've sold all their properties and moved their cash into other asset classes such as stocks or bonds since they think rental properties are much too big of a headache. The scenario is always a similar. They made the decision to invest their cash, they heard rental properties were good money makers, they buy a few properties, and then manage them by themselves.
Pretty soon they are burned out from dealing with tenants. After property management kew and a lot of phone calls from renters, they determine that accommodation is way too big of the headache and so they become unattainable. 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 of the time I get an answer of "well it will cost far 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 often a fee to cover what you'll receive.
There is really a difference between a property manager and a property management company. When you hire a home manager you happen to be hiring a staff. You will have to pay them a salary and pay payroll taxes on them. When you hire a house management company you are simply outsourcing the management with a company. They are not an "employee" of yours.
In most all cases I lean towards finding a company rather than signing up for an employee. If you only own a number of properties you will definitely only employ a company because you won't have adequate income to guide a staff member's salary. At some point, if you achieve adequate, it could be in your best interest to engage a person whether full-time or part-time.
Here's the main advantages of hiring a house management company when you start purchasing rentals.


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

A professional property management company will know how you can most effectively market your properties to achieve a minimal vacancy rate

They will also know how to maximum benefit book of a property given that they be aware of market

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

You can learn off their wealth of knowledge and experience from coping with rentals
You should manage the properties yourself. Many people do. If that's what you like and you have enough time, there's certainly nothing wrong with this. But don't forget one can learn a great deal from working with a professional company.
You will want to get references before picking which company to match. Also, make certain they have got their real estate property license. You also need a company who specializes in your type of property. For example, you won't pick the same company for the commercial property while you would one particular family house.
The final point here is if you wish to be a trader or would you like to be considered a landlord. Personally, I don't want to certainly be a landlord so I use property managers.
Happy investing!
Homepage: http://www.masonre.com.au/