One of the most important decisions a multifamily property owner will make about his or her property is whether to hire a manager. Yet, many forego consideration of this option for the simple fact they have misconceptions about property management as a whole. These misconceptions tend to stem from the following 3 property management myths:

1. Property management is too expensive. This is probably the biggest misconception about property management, but the truth is that it could be much more expensive to manage a property independently than to hire a professional. They not only have access to economies of scale that allow them to save money by hiring in bulk (maintenance), they also have lots of experience in marketing, assessments, and collections—aspects of property management that tend to drain the inexperienced property owner.
2. Property management is only for large multifamily properties. Property management is a viable option for any size property. Fees are based on revenue, not a set rate; so a property manager’s services are designed to fit the needs of each individual property.
3. Property management isn’t difficult. It takes experience to manage a property well. It is a full-time business with many facets. A professional property manager is going to handle every aspect of the investment for you from discovery and purchase, to marketing and tenant assessments, and collection and accounting. And even more. Property management done right is best done by someone who knows the commitment requirements and has the resources to dedicate to it.

Bottom-line? Property management can make or break a multifamily property investment. The key is to have the right person(s) in place to handle the task.