It can be a wise decision to enlist a property management firm to tend to your property if you're a property owner. Generally there is already a good leasing system set in place on managing properties. They also tend to have a good relationship with vendors such as eviction attorney's and maintenance teams who are required to run a good management set up in the event such services become necessary. Typically, property management companies can handle all of the calls that tenants will make, even if they're early in the morning or late at night.

There are however, some drawbacks to hiring a property management company. These companies can charge up to ten percent of the gross annual rental fees, and that can account for a very large percentage of your cash flow. Not every management company is the same and some of them don't have good leasing policies or systems in place. You'll need to do your research. 

Another concern is that of the property management company hiring employees for such things as repairs. Some of the contractors may charge referral fees when they are given jobs.

The owner will have to pay for any work that is required to be done on the property and these fees can become very outrageous if they're not carefully monitored. Thus, if the team that does the work isn't good, you may have to pay more for extra time, extra parts, and sadly, having the repairs fixed if they weren't done right in the first place. Since having the work done makes the property more marketable, most property management companies tend to over do it on this aspect and it can wind up charging the owner a lot of money that the owner hadn't planned on having to pay. 

Most companies are really good about watching these fees, but some aren't so it will behoove the owner to do their follow up and make sure that the work is getting done. The owner could also tell the property management company which company they wish to use and to only use that company exclusively. The property management company often has an incentive to use a specific company but both parties should agree upon what is being done and who is doing it. Otherwise, the property management company may be fired. Since some tenants will trash the property, and property management companies know this, there is often some incentive to put such tenants into a rental in order to reap the benefits of using a company of their choice. 

Property owners usually ask property managers if tenants are good or bad. It's sort of like asking a barber if you required a haircut. Of course they're going to say yes. A good tenant to a property owner may not be a good tenant to a property manager.

When you figure in the cost of the lease fee in order to get a new lease ready, it can behoove the property management company to renew a lease. Some property management companies use a newer system and the land lord is charged for the new lease on new tenants in order to help reduce fees. Sadly, property owners and property management companies are often at odds with one another when it comes to money terms.

This leads to the questions, should one even consider hiring a property management firm in order to manage ones property at all? This shall be continued......