What is the difference between a management company and private landlord?
In the past, all rental units were managed by a private landlord, someone who owns all or part of the building managed. Over the past twenty years, however, the percentage of rentals that are managed by management companies has increased dramatically. Larger management companies tend to have higher rental rates than smaller companies or private landlords. The main reason for this is because the larger management companies charge a management fee to the property owners (often around 6%). Management companies usually can afford to offer more services, such as longer office hours and 24×7 emergency maintenance.
