Why Successful Real Estate Investors Partner with Property Management Companies

Congratulations on becoming a landlord or growing your real estate portfolio in North Carolina. You’ve now set yourself up to earn a potential recurring income month after month. 

With that said, you’ve only won half the battle at this point. To win the other half, you’ll need to manage your property the right way. And this now brings us to the all-important question – should you self-manage your rental property or should you partner with a property management company? 

Now, being a landlord in North Carolina can be anything but easy. You need to know how to market vacant units, screen prospects, collect rent, file taxes, respond to maintenance issues, deal with tenant complaints, among other responsibilities. 

If you’re just starting out as a landlord, all these responsibilities can prove daunting and overwhelming. It’s for this reason that makes successful real estate investors partner with property management companies. 

In today’s article, you’ll learn everything you need to know in regards to how a property management company can help you meet your goals. 

What is a Property Management Company? 

A property management company is simply an entity whose main purpose is to manage rental properties on behalf of property owners. The following are some of the responsibilities that they can help you oversee.

• List your vacant property. A property manager has the skills and expertise to help create a stunning rental ad. In addition, a good property manager will help market the ad extensively in order to get as many prospective tenants as possible. 

• Screen prospective tenants. A good property manager will have a thorough tenant screening process to ensure only the best tenants get to rent your property. Among other things, they will look at things like a prospect’s income level, credit rating, and rental history. 

• Collect rent on your behalf. Rent collection isn’t always easy. A good property manager can help you streamline the rent collection system. This will ensure you get paid on time, every time.

• Respond to maintenance issues. At some point, a tenant will encounter an issue that will require your intervention. A property manager will save you the time and trouble in handling such issues, whether they happen midday or midnight. 

• Draft a great lease agreement. This is a must-have document in order to run a successful real estate investment. A lease agreement will help avoid potential conflicts that arise from a lack of misunderstanding. A good property manager will know the exact terms to include in order to ensure your interests and investment are protected.



• Advise you during the tax season. All rental income that you’ll potentially receive is taxable. However, the process of filing taxes isn’t the easiest. It can be extremely challenging, especially for first-time landlords. A good property manager will not only help you file your returns, but will also help you take advantage of all tax deductions you may be eligible for.

What Does it Cost to Hire a  Property Management Company in North Carolina? 

The pricing of property management companies usually boils down to either of two models: percentage based or flat rate. For percentage based, you can expect to pay a monthly fee ranging from 8 to 12 percent of your monthly gross income.

Suppose, for instance, that you charge tenants a monthly rental price of $1,400. In such a case, you should expect to pay a property management company a fee ranging between $112 and $168 every month. As for the flat based model, it’s just that: a flat fee. This often ranges anywhere between $100 and $150 per month. 

A good property manager is worth their weight in gold; they can do wonders for your rental property! It’s no wonder successful real estate investors trust them with their investments. 



Is Hiring a Property Management Company Worth It? 

Without a doubt, it is! As mentioned, being a landlord isn’t easy. Between finding a great tenant, ensuring rent is collected on time, and keeping up with maintenance issues even at odd hours of the night, being a landlord isn’t a job for the inexperienced! 

Hiring a property management company can help free up your time, reduce stress, and maximize your income. How will they be able to achieve that? By helping you with the following key responsibilities. 

• Fill your rental vacancies with reliable and dependable tenants that will care for your property, and pay rent on time. 
• Deal with any complaints between tenants, for example, about noise issues. 
• Screen all prospective tenants to ensure you minimize the chances of renting to a potentially difficult tenant. 
• Inspect your property from time to time to ensure it’s in full working order. 
• Keep your property habitable by maintaining it as required. 
• Price your property correctly to ensure it not only remains competitive in the local market, but that you’re able to maximize your income. 
• Keep up with the state and local landlord-tenant laws. 
• Show your property to prospective tenants on your behalf. 
• Draft a foolproof rental agreement to safeguard your interests. 

How to Know Whether to Self-Manage or to Hire a Property Management Company? 

To help you answer this, the following are some important questions that you should ask yourself. 

• Do you have the time to respond to maintenance issues quickly?
• Have you managed a rental property before?
• Do you understand the Fair Housing Act, as well as other North Carolina landlord-tenant laws? 
• Can you market a rental property?
• Do you know the tenant eviction process in North Carolina?

If you answered “no” to these questions, then hiring a property management company is the best option for you. 

Bottom Line

Successful real estate investors partner with property management companies because they understand their immense value. A good property manager will help you meet and exceed your investment goals. If looking for expert help in managing your Charlotte rental property, then look no further than Dawson Property Management. With a portfolio of over 200 doors, you can be sure that we will deliver top tier service.