Lots of landlords start off with no need for any help at all with their property management. They have a very small portfolio and trick themselves into thinking that they are just as efficient with their hand records as any software or management firm. That is clearly a mistake, but the fact is that when the going gets tough and landlords finally face up to needing help, they often make another error. This one has the potential to cost them a lot of money. They choose property management firms over property management software.
When they start to struggle as their portfolio grows, many landlords panic and throw the whole lot into the hands of a property management firm. This can be a major mistake for a couple of reasons:
Of course, first there is the money. Most property management firms charge a substantial block of money every week. The alternative of buying and setting up decent landlord software does involve an initial cost but once that is paid the monthly outgoing is minimal, if anything at all. In contrast, a property management firm will cost a huge block of cash and it will charge increasingly more as your portfolio grows.
Landlord software does not work like that.
It does not care how big your portfolio gets, it just allows you to enter more into the system and does not hit you with a huge bill for the privilege.
Another thing that landlords do not anticipate about property management firms, is the sense of disempowerment they bring with them. Most people go into property in their own business to achieve a sense of being in control of their future and their finances. With a property management firm you lose all of this. They take over the whole thing and you have little say in how they run things. They may claim you will but when it all comes down to it they have their policies. On the other hand, property software dramatically reduces the hours you spend running the show but still allows you to be completely in control and in charge.
Property management software allows you to build your own reputation just with the help of a tool to make things a lot easier. When you hire a property management firm, you are placing your business reputation, the most vital thing of all, in the hand of strangers. Some of them are probably very good but no matter how good they are mistakes are made and it is a very frustrating feeling when those mistakes that harm your business are not even your own.
If you are getting to the point where your property portfolio is growing and becoming unwieldy, do not make the knee jerk decision to turn it all over to the property management firms. Not without at least giving property management software a try first. It will help you to reduce your hours and maintain control, so it really is the best of both worlds
