Should I Hire a Property Management Company for a Single Rental Property?
Hiring a property manager for your single rental property can be worthwhile if your time is limited, you live far away from your rental, you're concerned about legal compliance risks, or if costly repairs and unexpected vacancies are impacting your return on investment (ROI). On the other hand, managing your own rental property can be a good alternative if you have ample free time, prefer a more hands-on approach and are fully confident that you understand local rental regulations.
What Does a Property Manager Handle for One Rental?
When you hire a property manager for your single rental, they handle the daily tasks that keep your investment thriving. Their key duties often include:
- Marketing: They market your property to attract high-quality tenants quickly.
- Tenant screening: They screen applicants to ensure reliable renters for your property.
- Rent collection: Your manager collects rent and enforces late fees if necessary, saving you stress.
- Maintenance: They coordinate routine cleaning and maintenance with vetted vendors, helping your property retain value.
Property management companies also offer accounting and financial services. They'll manage your expenses, file property taxes and create compliance reports for you.
How Much Does a Property Manager Cost for One Unit?
Property managers for a single unit generally charge 8% to 12% of your monthly rental income. For instance, a $1,600 rental might incur a $160 fee at a 10% rate. Some companies offer a flat rate, typically ranging from $100 to $200 per month, depending on factors such as your property's square footage and the services provided.
You'll also find a leasing or new tenant placement fee, which is often 50% to 100% of the first month's rent. Additional charges may apply for services like lease renewals or evictions.
If these costs are less than the value of your time, including the avoided vacancies and the legal risks associated with noncompliance with landlord-tenant laws in your state, hiring a manager can be worthwhile.
A Quick Decision Guide: Hire for One Rental or Self-Manage
You should consider hiring a property manager for your single rental if:
- You've faced tenant or vacancy issues.
- You don't have time for self-management.
- You travel frequently or live far from your property.
- You're unfamiliar with state rental laws, like security deposits or late fees.
Even if you're comfortable with screening and compliance, a manager can save you valuable time. Perhaps you want to be hands-on, but are worried about compliance. Professionals are committed to understanding rental laws, including Fair Housing, helping you avoid violations. However, if you're local, have ample time, and know all the rules and regulations, you might not need one.
Hire a Property Manager in Central Pennsylvania
Founded by landlords, Harrisburg Property Management Group manages over 2,000 rentals in Central PA. We understand your needs, offering comprehensive services to free your time and maximize returns, even for a single rental.
Contact us today to determine if our management services are a good fit for your property.
