Finding a property manager is not as easy as it may appear to be. There are many issues that your local property manager will need to address regarding your property. Whether your local property manager knows how to deal with those issues depends on their experience to an extent. More importantly, it depends on the firm they belong to.
This is where you have to decide between hiring a big property management company or a relatively smaller one. Going forward in this blog post, we will look at the pros and cons of each type of property management company. Hopefully, you will be able to identify which type of property manager is more likely to address your concerns better.
Large Property Management Companies
Large companies are generally associated with more professionalism and consistency in dealing with their clients. So, in finding a property manager from a large company, you are most likely going to have more trust in their service. While this may not be the case with all large companies, this has been observed in general.
On the other hand, if you do go for a large-scale property management company, your local property manager will likely not be as dedicated to you as that of a smaller company.
Let’s see some of the strengths and weaknesses of large property management companies.
- Solid structure and consistent system – Like mentioned earlier, it’s more likely that a large property management company will have more rules and regulations. They will also have very consistent ways of doing business, so you know exactly what you’re getting into once you decide to hire one of their property managers in your area
- Cost effective – It’s obvious that as the scale gets larger, the cost of things generally becomes lower. Property management companies are not any different in this regard. Property managers from large companies might be able to charge a lower monthly fee to owners because they have large portfolios. With the comfort of this income, they can entice owners with lower fees and do more business
- Reliable – With larger companies, you know they won’t shut down one morning, leaving you with confused tenants. They have stable income from their large book of business. You’ll get monthly checks with little delay
- Lack of flexibility – While the solid and consistent structure of a large company may sound safe and trustworthy, unfortunately, it won’t be very flexible. The company’s established policies may make it difficult to get exclusions or discounts
- Lack of communication – Again, with a larger company, you are just another client to your local property manager. You are not their only concern. To get your issues noticed, you will probably have to go through a painstakingly long process
- Lots of paperwork – There won’t be a single thing, no matter how insignificant, that you will be able to get done without having to sign. At times, it will seem unnecessary, but it’s something that just comes with the weight of a large company. It’ll also help cover you in case you do not get the agreed upon service
Small Property Management Companies / Individual Property Managers
Finding a property manager who will be genuinely dedicated to your property is the dream. Local property managers from big management firms are unlikely to have this attribute. They just have so much on their plate that your issues might be pushed aside.
On the other hand, with a smaller property management firm or even an individual property manager, the chances of getting personal attention increase significantly. This is especially true if your portfolio brings in more income than most properties. However, there may be some downsides to being a big fish in a small pond. Let’s delve deeper into what works and what doesn’t with smaller management firms.
- Availability – A local property manager from a smaller firm will be available for you because they won’t have too many other properties to look after. This is a great plus if you like to be heard often and get instant feedback
- Customization – If a large property management company has its hand tied when it comes to flexibility, smaller companies will make sure you have the exact opposite experience. In most cases, they will even alter their ways of conducting business to accommodate you. This is perfect if you have unique properties or want to do something like performing your own maintenance
- Assistance – A local property manager from a smaller firm is likely to assist you in most matters that might fall outside their scope. For example, they can do more property inspections or work with you to help move out furniture
- Lack of reviews – Smaller companies tend to have a small number of clients. If these few clients aren’t leaving reviews or other feedback, you may not know the best and worst parts of doing business with this small property management firm
- Accountability – Small companies may not have an established set of policies. You may end up with bad tenants or legal issues if your local property manager uses poor judgment. Be sure your property management company has a handbook to ensure their affairs are in order
- Lack of stability – Your property manager may only have a handful of units to look after. If they lose too many of these units, the company may become insolvent. They could close up their shop and leave you with wasted time and money
Compare local property managers to get the best deal
We can see from our discussion that there is no black and white solution to the problem of deciding between a larger and a smaller property management firm. Both have their fair share of advantages and downsides. You need to review your properties to determine which management firm will be the best fit.
After doing this, list your property on Burbz for free to get proposals from local property managers. You can compare their fees and terms to see which management firm will be the most effective.