One of the biggest problems with setting up a rental business is the financial cost and your own effort that comes with building the capability to deal with your renters’ problems. Any number of issues can occur in your own home, so when you expand those problems across the 5 and upwards properties that you own, the problem becomes very significant. A broken boiler, a malcontent tenant, a lack of rent-pay, will become increasingly common occurrences as your portfolio of properties begins to expand.
One of the easiest solutions to this scenario is to pay for property management services. The reason why this is a valid option is because you don’t need to develop your own system to manage your tenants and your properties, as they will essentially bring a ready made, white label management system, and staff. All you have to do is pay for it.
The downside to property management companies is that they can be pretty expensive. In an ideal world, you would use them while you steadily build up your own systems and put them in place, bu there is a significant period of time, between being small enough to not need property management services, or being large and developed enough to have developed your own, where paying for these services becomes the best option.