Pros:
• Provides a steady stream of income. Property management involves renting out property to tenants, which results in regular rent payments that can form the basis of your business.
• You are the boss. As with any other small business, you will have the freedom to manage your own business and make decisions that best serve you.
• You can add value to a property. By managing a property, you can help it stay in great shape over time, increasing its value and making it more attractive to tenants.
• Relationships with clients may become strong. Property management is very much a people business, and you may develop strong relationships with your clients.
Cons:
• It can be time-consuming. Property management requires a lot of attention to detail and staying on top of paperwork, tenant concerns, rent collection, maintenance issues and more.
• High costs associated with starting. You may need to pay for things like insurance, marketing and legal fees when starting a property management business.
• You will be responsible for tenant issues. You may have to deal with late-paying or unruly tenants which can be difficult and stressful.
• The market may limit your growth potential. The real estate market can be unpredictable, and this may limit your opportunities for growth.
• You may need to pass certain exams or obtain licenses. Depending on where you live, you may need to prove your knowledge and expertise by passing an exam or obtaining a license in order to manage properties.