The choice to get involved in real estate investing is a large one and even after the substantial process of determining whether a particular investment is right for you, a number of decisions must be made as to how you are going to manage that property. One option for property management is hiring outside help to give you the luxury of having a hands-off approach to your investment property in exchange for giving up some of your potential profitability.
Obviously, giving up some of the profitability of your investment property is a heavy price to pay but in some situations, the luxury of not having to take care of the day-to-day operations of a property is worth the cost. These are some questions that you should ask yourself about your investment property to determine whether hiring outside property management is something that you should consider.
What Are The Costs?
The cost of rental property management can often surpass just the up-front fee charged by the rental property management company. While that fee will make up the majority of the cost (often between 4 percent and 12 percent of rental payments in most areas of the country), knowing what kinds of services will include extra costs is an important factor in determining whether a particular company fits your investment property.
Evictions are sometimes a part of the rental property process and it is possible that a rental property management company will charge a premium for eviction proceedings. If you want the company to handle things like showings and property walkthroughs, sometimes those activities will incur additional costs. It is important to get a full slate of costs, beyond just the base percentage of rent amount cost.
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