Property owners often debate whether to hire a property management company or manage their property independently—whether it’s a commercial or residential property, a single unit, multiple properties, or even an entire building. While there is no one-size-fits-all answer and each case is unique, a property management company can undoubtedly provide peace of mind, relieve a significant burden, and even increase the property’s return on investment.
So how can you determine whether hiring a professional property management service is the right choice for you? And if you choose to manage your property independently, what key factors should you keep in mind?
What does self-managing a property involve?
Property management involves a wide range of tasks and responsibilities that every rental property owner must be familiar with:
Tenant sourcing and screening
Of course, you want to generate income from your property, but selecting reliable and high-quality tenants is crucial. The right tenants will help ensure the property is well-maintained, rent is paid on time, and legal or other issues are minimized.
Maintenance and Repairs
Property maintenance is typically the responsibility of the owner. When issues arise in essential systems such as electricity, water, communications, gas, or structural integrity, it is crucial to quickly find reliable and skilled professionals, ensure the work is done properly, and verify that the pricing is fair.
Rent Collection and Payment Monitoring
Some property owners have no issue handling rent collection, but in cases of conflicts with tenants, the situation can become sensitive and potentially uncomfortable.
Lease Management and Legal Compliance
In Israel, there are laws, regulations, and industry standards that apply to property owners as well. It is essential to understand these legal aspects to be aware of your rights and obligations as a property owner.
Property owners with one or two properties to manage can often handle the various tasks on their own with relative ease. However, not everyone has the available time — especially if they don’t live near the property. Additionally, not all owners are familiar with the legal aspects of property management or equipped to handle problematic tenants. Many also lack the resources to find reliable professionals, conduct bidding processes, and select the best service providers to ensure quality work at a fair price.
The Advantages of a Property Management Company
Whether you own a commercial or residential property, or whether you have a large or small portfolio, a professional property management company can make a significant difference in your life. An established and reputable company has a broad network of professionals across various fields, including maintenance, legal affairs, rent collection, customer service, financial management, property marketing, tenant screening, and more. These professionals are typically experienced and highly knowledgeable in their respective areas, providing you with several key advantages:
- A property management company doesn’t need to start searching for a plumber or electrician to fix an issue in your property—it already has a network of trusted professionals readily available, ensuring quick response times and efficient service.
- The property marketing process is ongoing, allowing a professional management company to find tenants more quickly. Additionally, they conduct thorough tenant screening to ensure reliability and provide you with peace of mind.
- Professional legal support provides property owners with comprehensive protection, ensures compliance with regulations, and helps prevent legal issues.
- Professional property management companies utilize advanced technology, allowing them to receive requests and access information 24/7, coordinate service providers, and obtain quotes quickly and efficiently.
All these aspects of professional property management, along with many others, directly and indirectly contribute to increasing the property’s value and maximizing the owner’s return on investment. A well-maintained property retains its value over the long term, while its surroundings are managed as needed, according to your agreement with the management company. Experienced professionals handle tenant selection, ensuring you get reliable tenants, proper pricing, and avoid costly losses. Altogether, these factors enhance the property’s value, facilitate higher rent collection, and ultimately provide a greater return on investment.
Is Hiring a Property Management Company Financially Worthwhile?
- Self-managing your property requires a significant investment of your time, whereas a property management company handles all tasks quickly and professionally with an experienced and efficient team.
- Ongoing maintenance costs, service providers, and repairs are more affordable since a large management company has greater negotiating power.
- Extensive experience in supervising service providers ensures high-quality repairs, minimizes costly defects, and prevents financial losses.
- Professional day-to-day management, tenant retention, and organized rent collection help maintain steady income and even increase returns on investment.
- Professional contract management and payment tracking help prevent financial losses and ongoing issues.
Examples of Solutions Only a Property Management Company Can Provide
Case 1: A Neglected Property That Became Profitable After Professional Intervention
A property owner found himself at a loss after several years of renting to a family. While normal wear and tear was expected, the property also suffered significant damage due to prolonged tenant neglect.
The property management company stepped in, bringing in skilled professionals at competitive rates for the owner. They restored the property’s condition to the point where its value increased, allowing the owner to raise the rent and improve their return on investment.
Case 2: Dealing with a Problematic Tenant and Saving the Property Owner Time and Money
Dealing with a problematic tenant can be a stressful experience for property owners. However, with the support of a professional property management company, including legal assistance, the process becomes more efficient. This helps minimize stress, shorten legal proceedings, and streamline the resolution.
Case 3: A Residential Building with Significantly Improved Maintenance Under Professional Management
Building maintenance is a complex matter that depends on various factors, including the building’s systems, number of floors, and its purpose—whether residential or commercial.
A professional property management company brings extensive experience in managing different types of buildings. As a result, properties that transition from private management to professional management see significant improvements in maintenance. They benefit from regular preventive care, as well as swift repairs for any issues that arise.
Common Mistakes in Self-Management
The primary challenge for property owners who self-manage is a lack of experience and expertise in the field. Property management is a professional discipline that involves handling complex aspects across multiple areas.
Improper management of these aspects inevitably leads to negative consequences:
- Drafting illegal or unfavorable lease agreements for the property owner, along with selecting problematic tenants.
- Lack of oversight on maintenance and service providers, leading to high costs and substandard work.
- Mismanagement of legal aspects can cause unnecessary stress, lead to additional expenses, and even expose the property owner to legal complications.
Who Can Benefit from a Property Management Company?
- Multiple Property Owners: A professional management company provides a centralized solution for managing multiple properties efficiently under one roof, ensuring a structured and convenient approach for the owner.
- Private Property Owners with No Experience: An experienced management company helps prevent beginner mistakes, offers peace of mind, and maximizes the property’s profitability.
- Remote Property Owners: Those who live far from their property can benefit from a local management company that oversees the property closely and protects the owner’s interests.
Frequently Asked Questions
If you live far from the property and cannot visit it frequently.
If you own multiple properties.
If you lack experience in property management.
If you want peace of mind, maximize your property’s return on investment, and benefit from a comprehensive, high-quality service package.
The cost of hiring a property management company varies depending on the services provided, the number and size of the properties, and whether they are residential or commercial. The best way to determine the exact cost is to request a detailed and personalized quote from the company.
Property management companies conduct thorough tenant screening, significantly reducing the likelihood of problematic situations. Additionally, they have legal teams that provide support in such cases, ensuring a swift resolution with minimal stress and financial loss for the property owner.
Pay attention to several key factors: relevant experience with your type of property, a comprehensive and customized range of services, 24/7 availability, flexible payment terms that suit your needs, and a high level of transparency and reliability.
Ultimately, professional property management provides peace of mind, preserves your property’s value, and helps maximize your return on investment. If you’re looking for hassle-free management and optimal profitability, contact us today—we’ll be happy to assist you.
