You have a large number of properties or rental units.
The more rental properties you own and the more units they contain, the more you’re likely to benefit from a management company. Management can be very time consuming and keeping up with landlord/tenant laws will consume your time, let alone actively managing the units.
You live out of town.
If your rental property is located far from where you live, hiring a property management company can be invaluable in dealing with issues that may arise, such as:
- Advertising, taking rental calls and showing the property
- Screening prospective Tenants
- Executing rental agreements
- Handling with Tenant issues or maintenance requests
- Collecting rent
- Legal notices and evictions
- Accounting reports
You don’t have time.
If you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring help to manage your property. Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if landlording isn’t your day job. And if you prefer to spend your time growing your business, including searching for new properties, arranging financing for renovations, or changing your business structure, then a management company may be a good way to spend your money.