Pro's and Con's of Renting from an Individual vs. a Property Management Company
@Steve Rozenberg I think it all depends on the company or person. If you are a tenant, you want someone who responds quickly to any problems the property has and doesn't wait to fix things. You also don't want a landlord stopping by constantly for no reason. I think we have all had good and bad landlords before.
You need the same considerate style from both. As an owner/operator that means you grow into the job. When vetting a PM, it is hard to determine.
@Steve Rozenberg When I get calls asking if I'm the owner of the property, I get suspicious. Often times folks with evictions or other issues look for mom & pops who don't screen well, hoping to get under the radar with little deposit and no credible background check.
Whether you are a Landlord, Tenant, or Pm, you'd better have a screening process for the other two.
Individuals usually are lower traffic units maybe duplex, 4 plex, single family homes.
Were a property management company has usually lots of tenants in a very concentrated area.
Individual don't have as many amenities usually like a pool or work out room but peace and quite are priceless.
I think each can be as attentive as the other to their residents needs.
Individuals can save on repairs and paying a management company to lease, make readies, find, and manage tenants. Those savings translates to big money if added up. The con is that you will spend more of YOUR TIME doing it. It can also help you qualify as a "real estate professional" and help with deducting losses on non rental income under certain criteria if you actively participate in managing your rentals on your federal tax returns. Please check IRS for 'real estate professional" definition.
Management Company can SAVE YOU TIME but you will pay for it.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing