Posted by Dave T on November 10, 1998 at 20:45:42:
I use professional property managers for all my rentals. I pay between 7 and 10 percent of gross rents collected. Property management is always an expense item I include when I do a cash flow analysis for any rental property I may consider purchasing.
For me, professional property managers remove the headache of dealing with tenants and toilets. I do not have to be on call day in and day out. The property manager does the preliminary tenant screening, reference, income, and credit checks. I approve a tenant’s application when all the preliminary checks suggest a likely candidate tenant.
Having professional property managers also allow me to invest in many areas of the country without worrying about being an absentee landlord. I currently have holdings in MD, OH, and SC. My time is free to investigate and acquire additional property only because I delegate the property management to licensed professionals.
The professional property manager knows the applicable state landlord/tenant law and keeps me from running afoul of the law as well. For example, I did not know that in MD, the law requires me to pay interest on my tenant’s security deposit held in escrow, but my property managers did.
In my opinion, the small management fee is well worth the cost.