Whether you're a new Landlord just starting out, or you've been self-managing your properties for a while, the thought of hiring a professional property management company has likely crossed your mind.
Whatever category you fall under, you're bound to have some reservations about turning over such large investments to a third party.
Those reservations aren't unwarranted, and if you want to have a successful rental property business, you need to be fully bought in to whatever route you decide to take.
If you want to DIY it, you need to understand everything that comes along with self-management.
If you want to hire a property manager, you need to understand the pros and cons.
But beyond that, you have to understand that it's all relative.
While you certainly can argue the advantages and disadvantages of hiring a PM, what it really boils down to is value.
Are the services you receive worth the money?
Cons of Hiring an Indianapolis Property Management Company
Arguably, one of the main reasons you may choose to self-manage, is to retain full control over your property and be the sole decision maker.
A LOT of Landlords share this sentiment, and we get it.
Third party PMs are going to have certain processes in place for managing rental homes and they likely won't always handle things the same way you would.
If you want to hire a property manager, you have to be willing to let them do their job.
In some cases, that might mean you don't agree with a certain decision or outcome, but that's an aspect of professional property management that you'll have to accept.
Property Management Fees
An equally, if not bigger deterrent to most people who are considering a PM, are the fees involved.
We understand this mentality totally... "Why would I want to pay someone X% per month when I can do it on my own?"
And, in our experience, there are some DIY investors that do a reasonable job of managing their property. These people have time, are usually handy and don't mind the day-to-day interruptions that come with management.
The reality is that, if you self-manage, you WON'T pay a monthly fee to a management company, or a leasing fee, or a renewal fee, etc.
However, as most PMs will argue - including us - a well-run PM company will actually save most investors money... i.e. we'll lease your home faster than you will, we'll save you money on maintenance because of our volume discounts, etc.
But, I digress.
Keep in mind that finding a "low cost" property manager may seem like a good compromise, but I can assure you that cheaper isn't always better and you will likely end up losing more money in the long wrong if you don't hire a quality property management company at the outset.
Property management fees may reduce your profit margin, so if you depend on every single dollar of monthly income, then it can be a definite downside you need to be aware of.
Pros of Hiring an Indianapolis Property Management Company
We could break this category down into quite a few sub topics, but there's really just two main points I want to hit on.
Peace of MindThe main thing that a professional property management company can - and absolutely should - provide you with, is peace of mind.
A good PM will be equipped with the staff, tools, and processes to handle every little detail of your property, which should make you feel more comfortable with you investment.
All the time that you would have otherwise spent marketing, conducting showings, screening renters, handling maintenance calls and issues, etc. will now be taken care of by the PM.
This provides you with more free time to focus on other priorities.
Valuable Rental Market Insight
Unless you're an experienced, licensed real estate agent, market insight is likely something you have to rely on others to provide you with.
A property management company will be able to advise you on every aspect of the market including rent rates, seasonality, days on market, locations, and much more.
It's difficult to find reliable information in regards to rental market trends, which makes this an incredibly huge perk to having a PM as a partner.
The decision whether or not to hire a property management company should not be taken likely.
If you prefer being hands on and have the time and resources to devote to self-management, then hiring a professional company probably seems like to high of a price to pay.
However, if you feel the pros far outweigh the cons, then your next step is to begin your search for the right property management company.