If you decide to buy a property you will find that it is one of the best ways for you to build a portfolio and create residual income. However, many people are unsure as to whether they should buy a property and deal with the management of the property themselves or if they should work with a property company to find an investment property and look after it for them.
Let’s take a look at the benefits and negative aspects of managing the property yourself and using a property company so you have a better idea of what you should do.
The Benefits of Using a Property Management Company
There are many benefits associated with using a property management company. Companies such as these are usually up to date on property laws and requirements. Some companies can even offer a full end-to-end service covering financing, furnishing and after sales.They can help you establish how much you should charge your tenants. They will also assess the rent for you to make sure you’re getting the right amount of money.
You won’t need to communicate with your tenant as they will, and they’ll even respond to an emergency should it arise. What’s more, is they know who to call if an electrician is needed, for example.
A property management company will also deal with a change of tenants, inspections, applications and security deposits.
The Negative Aspects of Using a Property Management Company
The only real negative aspect associated with using a property management company is the effect that it has on your profits as you will need to pay for the management service. However you don’t have to worry about managing the property yourself or the time it will take. You won’t have advertising expenses, administration costs and the costs associated with processing an applicant.
The Benefits of Renting a Property out Yourself
The clear benefits of renting a property out yourself is the money. You get to keep all of the rent that a tenant pays you. What’s more, is you can rent the property out to whoever you please.
The Negative Aspects of Renting a Property out Yourself
The negative aspects of renting a property out yourself include searching for a tenant, having to inspect the property, advertise the property and dealing with security deposits. You will have to be prepared to do a lot of work especially if there is an issue with the property.
If you can afford to let a property management company deal with your buy to let property you’re more likely to have a good tenant, and any property issues will be dealt with.