You bought some commercial real estate. You're not alone. Independent landlords own over 24 million units across the US, making it one of the most popular financial investments in the country!
There's a reason for it. It really is a great investment, but you quickly learn that it's a lot of work.
That's where property management companies come in. Let's talk about the pros and cons of hiring one.
The Pros of Hiring Property Management Companies
There are some really great perks that come with rental property management, and passive income has to be the biggest one. Who doesn't like making money without all the work? Yeah, nobody.
When you hire commercial property management, you take an enormous weight off your back. They handle the maintenance and repairs, finding tenants, collecting payments, and all the nitty-gritty details.
Another great benefit, especially if you're new to property ownership and don't have all the necessary skills, is the experience they bring to the table. The right management company will offer plenty of experience in the industry that proves invaluable to all the unexpected challenges that arise in property ownership.
If you're busy with other work and your regular plumber is on vacation, who is going to fix the leaking sink that's about to start flooding the basement?
Property management services offer a quick response time, 24/7, that will provide your tenants and your property the attention it needs when it needs it. You can just sit back and relax.
Shorter Vacancy Time
The current rental unit vacancy rate in Oklahoma County is 8.53%, which is more than twice as high as some states.
Luckily, property management companies have the resources and the professionals to fill your vacant units, offering a shorter wait time to fill those slots. With quick response times and accessible systems in play, it also helps with tenant retention. This benefit is simple, it helps you collect more checks throughout the years!
The real con is the pay cut. You will owe a portion of your rental income to the management company. However, this is usually a relatively small cut compared to the amount of work taken off your back.
If you're willing to remove all the work for a small portion of your rental income, then talk to a property management expert about the prices they can offer you. You may be surprised by how affordable it is!
The only other con you can think of is a lack of control over your property. However, it is still your own to do with as you please, and with the right team with the right experience, you can rest assured that it's being taken care of.
Property management companies offer a lot of great perks to commercial real estate owners, especially if you're planning to expand your business. Without outsourcing, buying a rental property is just buying a job.
With all that free time you have from hiring a property manager, use it to check out some of the tax benefits that come with owning your new rental property!