Is Outsourcing Your Property Portfolio Management a Good Idea?
The question of whether to outsource your property management or do it yourself is always answered with mixed reaction. While many people argue for this, others argue against it. However, outsourcing or doing it yourself, highly depends on your skill set and what you want. Choosing which one is better for you depend on answering certain questions that best relates to you.
The first thing you need to consider if you should outsource for a property manager or if you should do it yourself is the skills and experience. Like any other business, the level of your skills plays an important role in determining the success story of your business. If you don’t have the needed skills it is advisable you hire someone who does, but if you are willing to learn you can do without outsourcing for one. Apart from the needed skills, there is the need for you to have considerable experience in the field before you venture into managing your properties yourself. Even if you are willing to learn, it will take longer time for you to get the needed experience.
The next thing you need to consider before managing your properties yourself is how your current lifestyle aligns with your property business. If you are a busy person, you may not have time for your business, which will apparently suffer. Instead of killing your business because of your busy schedule, it is better; you give it to a competent manager who will move your business forward while you go on with your busy schedule.
Furthermore, outsourcing your property manager helps you in covering more grounds, while speeding up your process. If you have multiple properties, there is no way you can effectively manage all of it, even though you are highly experienced. The duty of the property manager in this case is to ensure that your properties are well taken care of, even in your absence. In other words, since most of them have their own property management company, they also have staff that covers other cities; which you cannot do alone.
It is cheaper to outsource a competent property manager than expected. The property manager, depending on your agreement, collects only 8% to 12% of the rent, while you keep the rest for yourself. This makes it easier for rent collection as many of the tenants do not have personal relationship with the property manager. Even if they though, the property manager will be concerned about collecting his percentage than the relationship he has with the tenant.
In conclusion, the advantages of outsourcing a property manager give you more peace of mind than doing it yourself. The skills and experiences needed in property management requires a full time property manager.