Almost half of all homes in California are occupied by renters. That percentage continues to grow every year.
If you are a property owner or landlord, you are always looking for ways to stay ahead of the competition while optimizing your bottom line. This often means deciding whether to outsource responsibilities or handle things on your own. Which is best depends on your unique circumstances.
This article compares in-house versus third-party turnkey property management services. It will help you determine which is suitable for your Riverside real estate investment.
Advantages of In-House Property Management
An in-house property management setup has a few benefits. The main one is that it allows property owners more control over the daily operations of the business.
This includes greater flexibility in decision-making and the ability to handle problems directly. It is an ideal setup for those who prefer a more hands-on approach.
This extends to tenant relationships. An in-house team will naturally have more face-to-face and direct interactions with renters.
A final advantage is potential cost savings. If you are not outsourcing to a company, it is money in your pocket. Also, it allows you to contract out for particular projects as you see fit.
Advantages of Third-Party Turnkey Property Management
The main benefit of hiring a third-party management company is that it shifts responsibilities to someone else. This can free up time and alleviate stress for the property owner.
It lets someone else deal with property disasters or uncooperative tenants. It can also allow you to be less confined to the business in general and focus on other business or personal obligations.
Next, third-party turnkey property management companies may be much more effective than in-house staff. They can leverage experience, expertise, and tools to ensure smooth operations.
This applies to many different aspects of property management. If you need marketing and tenant placement, these companies will know how. If you require grounds maintenance, accounting, bookkeeping, or legal services, you get that with a one-stop shop.
This brings up another advantage of hiring third-party companies. You might assume it costs more, but that depends on how you look.
As mentioned, reputable rental management companies will likely be more efficient. That means they can tackle repairs or respond to tenant requests even if you are away from the office. They can likely fill vacancies faster, which means more income for you.
Also, most companies will allow you to choose the services you need without paying for the ones you don't. This can eliminate the sense that you are "losing money" by going with an outside company.
Learn More About Riverside Property Management Services
Now that you understand the pros and cons of in-house and third-party turnkey property management, you can determine which is right for you. Both offer unique advantages and drawbacks that are important to consider.
PMI Riverside is a real estate asset management company that offers many different types of services. These include marketing and tenant screening, rent collection, grounds maintenance, accounting, and more.
Reach out to us today to schedule a free rental analysis.
