As a property manager with years of experience in the industry, I have seen many developers face the challenge of deciding between hiring a professional property manager or building an on-ground leasing office. While both options have their pros and cons, ultimately, the decision should be based on the developer’s specific needs and priorities.
It is important to note that regardless of whether a developer chooses to hire a professional property manager or build an on-ground leasing office, having a good understanding of fair housing and property management laws is essential. Property managers and developers alike must be knowledgeable about these laws to ensure that they are managing their rental property in a legal and ethical manner. Violating fair housing laws can result in costly lawsuits and damage to a developer’s reputation, so it is important to take these laws seriously.
Furthermore, understanding fair housing and property management laws can also help developers and property managers avoid discriminatory practices and ensure that all tenants are treated fairly and equally. This not only helps to create a positive and inclusive environment for tenants but also helps to ensure long-term profitability for the rental property.
Pros of Hiring a Professional Property Manager
One of the main advantages of hiring a professional property manager is that they have expertise in managing rental properties. Property managers can assist with everything from tenant screening, rent collection, and lease agreements to maintenance and repairs. Additionally, property managers have a network of industry professionals that can help keep a property running smoothly. With their experience, property managers can effectively manage the day-to-day operations of a rental property and ensure that the property is profitable for the developer.
Another benefit of hiring a professional property manager is that they can provide a more flexible and cost-effective solution. By hiring a property manager, developers can outsource the work and focus on their core competencies. This can save time and money in the long run. Property managers can also be hired on a contract basis, meaning the developer can hire them only when needed, saving money on payroll expenses.
Cons of Hiring a Professional Property Manager
The biggest disadvantage of hiring a professional property manager is that they can be expensive. Property managers charge a fee for their services, which can be a significant expense for developers. Additionally, developers may have less control over the management of their rental property. Property managers may make decisions that are not in the developer’s best interest or that do not align with the developer’s long-term goals. Here is how Eclipse Property Management handles Pricing.
Pros of Building an On-Ground Leasing Office
One of the benefits of building an on-ground leasing office is that the developer has complete control over the management of their rental property. The developer can set their own policies and procedures and ensure that they align with their long-term goals. Additionally, having an on-ground leasing office can give developers greater visibility and control over the day-to-day operations of their rental property.
Another benefit of building an on-ground leasing office is that it can be a more cost-effective solution in the long run. While it may be more expensive upfront, having an on-ground leasing office can be cheaper over time than hiring a property manager. Developers can save money on management fees and other expenses associated with outsourcing the management of their rental property.
Cons of Building an On-Ground Leasing Office
One of the main disadvantages of building an on-ground leasing office is that it requires a significant upfront investment. Developers need to invest in the infrastructure, staff, and equipment necessary to manage their rental property effectively. Additionally, managing a rental property requires a lot of time and resources, which can be a challenge for developers who have other priorities.
Another disadvantage of building an on-ground leasing office is that it requires a significant amount of expertise. Developers need to have a deep understanding of the rental market, tenant screening, and lease agreements, among other things. Developers who lack this expertise may struggle to effectively manage their rental property.
In conclusion, having a good understanding of fair housing and property management laws is crucial for developers and property managers. It can help ensure that they are managing their rental property in a legal and ethical manner, avoiding costly lawsuits and maintaining a positive and inclusive environment for tenants.The decision to hire a professional property manager or build an on-ground leasing office ultimately comes down to the developer’s specific needs and priorities. Both options have their pros and cons, and developers should carefully consider these before making a decision. Regardless of which option they choose, developers should always strive to manage their rental property in a way that aligns with their long-term goals and ensures profitability.