Did you know the median price for a home in Nashville, TN was $421,000 in mid-2022?
That's good information to know if you're interested in purchasing a rental property sooner rather than later. You might want to invest in an investment property for cash flow, property appreciation, or investment diversification.
One thing to keep in mind if you wish to join the ranks of investment property owners is how you'll look after your property. You can either do it yourself or hire a third-party property manager.
Keep reading to see the pros and cons of each property management method.
In-House Property Management
Some rental property owners go with in-house property management. That might be a convenient course of action if you think you have the right skills.
There are some pros and cons of taking care of your investment property independently versus hiring a property management company.
The Pros
When taking care of your property without help, you can do things your way. If you like to have things done a specific way and prefer not to delegate, you might want to be your own landlord rather than depend on a service provider.
Another possible benefit is that you can potentially save money since you won't have to hand over a percentage of rental income to a property manager.
The Cons
While you might want to do things on your own, handling things independently means you might make errors a property manager wouldn't. Mistakes are easy to make if you own a rental property but have no experience as a landlord.
Remember, as well, that keeping all the rent proceeds might be enticing, but doing so might cost you more in the long run. Outsourcing property management can offer benefits and advantages justifying the expense.
Third-Party Property Management
Another option to consider is third-party property management from a reputable company. It's the way to go if you want to enjoy being a rental property owner.
You'll find that there are some pros and cons to consider if you're exploring hiring a property manager.
The Pros
You can count on a property manager to handle every aspect of owning an investment property.
A service provider can help you find tenants, collect rent, take care of the property, provide customer service, market your rental property, fill vacancies when tenants leave, advise on how much to charge for rent, and more.
The Cons
When considering the types of property management services available, you might initially wonder whether you need to part with any of your rental income. You might consider that a negative if you want to keep all the rental income.
Depending on where your rental property is located, you might find that there's no property management firm servicing that area. That can be an issue since you won't want to hire a third party that is located too far away.
Do You Need Help With Property Management?
If you own an investment property, you'll need to decide whether to handle property management independently or hire a property manager.
If you look at the pros and cons of each option, you'll see that hiring a property manager is a good investment.
At PMI Music City, we offer all the property management services you need. Get in touch to learn more.
