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Published On: Wed, Oct 11th, 2017

Property management company ‘spruces up’ Elizabeth House in Laurel

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To manage or have managed? That is a question many realtors are asked about properties by their clients. There are, of course, benefits to both scenarios. Costs are reduced for self-managed properties, but the care and dedication that comes with hiring a property management firm can significantly outweigh any savings that you might incur doing it yourself.
According to Nolo, hiring a property management firm can help with multiple properties and prevent legal issues from occurring. As a self-managing landlord, it can difficult to keep up-to-date with the changing regulations and ensure that your properties are maintained to the best of your ability. The choice can be a difficult one to make.
Real estate agents are frequently burdened with this conundrum, but 10 members of Forbes Real Estate Council have provided their formula for deciding between self-managing properties and hiring a property management firm. Here’s what to consider when facing this dilemma:

Forbes Real Estate Council members offer their insights.
1. Who Can Do It Better
For each and every decision we make as a fully integrated real estate firm, we ask ourselves one simple question: Can we really do it better than the third party? With property management, our initial question starts there. If someone can do it better than us, whether it’s because of scale, costs or resources, we are more than happy to hand it over. Those questions, though, are not always simple. – Ridaa Murad, BREAKFORM | RE

2. Skills And Resources
This decision may be about skill set and resources, not all about numbers. A landlord who is a contractor or handyman may need help with assessing tenants, and an HR pro who may have great experience assessing people may need help from a handyman. When working with investors, I ask questions about resources so they are set up for success. A great property management company could save money. – Michelle Ames, HorsePower Realty/Realty Executives Metroplex

3. Your Ultimate Objective
If you’re a new real estate investor, the initial objective is to understand the dynamics associated with managing properties in order to add layers of experience to your belt. When you accumulate a sizable portfolio, the question is: What’s your ultimate objective? I’ve seen seasoned investors fall out of love with investing because they self-managed and it ran their life. Awareness here is key. – Abhi Golhar, Summit & Crowne

4. How Much Your Time Is Worth
Hiring a property management firm is cost effective if you add up all the hours you spend per month managing, multiplied by the properties you own/manage, multiplied by your typical hourly wage. If the property management fee is less than the amount you calculated, then hiring a property management firm is essential.

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