Property Management - When to Utilize a Third Party

Many home owners are finding their homes sitting stagnate in a slow home market and are finding their options limited after relocating for work to either letting their homes sit empty or renting them out. Renting can be a great option if it is done right. The biggest fear most home owners have is renting to tenants who abuse the property, do not pay the rent and the situation ends in costly litigation. Unless the homeowner knows the potential tenant personally there is little to calm those fears. A realistic option is to use a property management company.

A property management company will screen all potential tenants, do a credit check and take care of the repairs that are a natural part of home ownership while the tenant is in place. Having a third party collect rent, enforce rules and ensure your best interest is protected is the smartest move an absentee landlord can make.

In order to find a property management company that is a good fit there are a few options available for homeowners. The first option is to consult with the real estate agent who is handling your home sale. Renting out a home that is for sale can be trickier since many tenants do not like to have potential buyers doing walk through and they face the unexpected potential of a home selling, forcing them to relocate unexpectedly. If this is your situation having your real estate agent act as the property manager can be the best solution if it is available. The agent will know your house and can make sure the potential tenants are going to be cooperative towards maintaining the home and allowing potential buyers to see it.

If your home agent does not work for a full service real estate agency and they do not handle rental management you will need to find a property management agency that you trust.

Whether you use your real estate agent or a management company you need to fully understand the services they offer, how they screen tenants, how they handle tenants who fall behind on rent or do damage and should come to a very specific agreement with you regarding how your property will be managed in your absence.

You may end up paying a portion of your mortgage even with renters in place since a soft market has also created lower rents and homes are not necessarily renting for what they would have rented for before the home mortgage crisis. However paying a portion of your mortgage is still better than paying the whole amount and leaving an empty home behind while you wait for the sale to come through.