Managing a rental property is not easy. In fact, the amount of time and work required to manage a property makes it equivalent to having a full-time job.
You’ll need to market your property continuously, especially if you have vacant units. Finding a good tenant also takes a lot of time as you review applications and screen them effectively. You also need to stay on top of the maintenance of your property to ensure that it looks attractive. This will help you keep your tenants long-term.
Aside from hiring a property manager to take over these responsibilities, its a good idea to hire one for the legal protection they provide. Different states have different laws that govern landlords and tenants. Having a property manager working on your behalf will help you navigate important statutes of these laws. This will ensure you don’t run into costly legal issues.
Property managers also provide organized systems and streamlined business practices for you to take advantage of. They’ll take the confusion out of financial paperwork and help you manage your investment effectively.
Reasons to Hire a Property Manager:
1. The Proximity of your Rental Property
If you live in another state, how much time can you dedicate to your rental property? In case emergencies happen, like a burst pipe, how easily can you travel to your rental unit? How much time does it take you to travel back and forth? Can you respond immediately to maintenance issues? If there are tenant complaints and disputes, and your presence is needed, can you get to the property quickly?
These questions are important to consider. Hiring a property manager to perform maintenance and emergency services will save you from stress and transportation costs. When your property is located far away, you should evaluate the costs of your time and money it takes to travel there. Hiring a property manager may save you a lot in the long run.
2. The Number of Units you Own
How many units do you own? How many tenants are you managing? Do you have a good system set up to organize your financial records?
When you have multiple properties, the time you need to spend on your business also multiplies. You’ll be engaging in more maintenance and addressing more tenant requests and complaints. You’ll also need to divide your time inspecting each property carefully. Having a property manager will help relieve you of the stress of constantly juggling each property’s and tenant’s needs. It will allow you to concentrate on tracking your rent income instead of tackling a neverending to-do list.
3. Your Property Management Experience
Are you new to owning a rental property? Are you confident enough to handle the problems and stresses that come with being a property owner? If a tenant damaged your property, do you know any reliable and professional contractors? If you do, will they give you reasonable or discounted fees? Do you know the laws regarding security deposits?
If you lack property management experience, it’s essential that you hire a property manager. This will save you from making mistakes that will equate to financial loss. It will also help protect you from potential lawsuits in case your legal knowledge is insufficient.
4. How Much Time you Have for Property Management
Can you allocate the required time to manage your rental property? Are you working a full-time job in addition to managing your property? Are you juggling several obligations? Do you like managing your property and can perform marketing, tenant screening, and rent collection on your own?
Managing a rental property is essentially another full-time job for you. Property management will certainly take up a huge chunk of your time. A property manager will free up your schedule and allow you to focus on your other activities.
5. If you Have High Turnovers and/or Limited Cashflow
Do you have a solid marketing plan? Do you have a wide network of licensed repairmen and long-term vendors that will provide you with discounts? Are vacancies and limited budgets causing you undue stress?
Hiring a property manager ensures you have someone who has the expertise to market your property effectively. A property manager will conduct a useful rental analysis to discover the best features of your unit. This will make their marketing efforts more strategic and effective.
When you need to make repairs or improvements to your property, a property manager can help out immensely. They’ve likely already built solid partnerships with licensed contractors and vendors, meaning the cost of repairs won’t be as much for you.
6. Your Tenant Management Skills
Are you open to constant communication with your tenant? Do you have the patience to handle frequent tenant requests and complaints? Are you prone to stressing out when it comes to facing property management problems?
Having a property manager to manage the tenants in your rental unit will relieve you of a lot of stress. They can enforce your lease agreements and act as your professional representative. They’ll spare you from the constant expectation of being responsive to tenants at all times.
They’ll help you avoid legal disputes with tenants as they’re knowledgeable when it comes to the laws you need to follow. If an eviction situation occurs, a property manager will shield you from financial and legal damage.
These are just a few of the reasons you should consider when deciding whether or not to hire a property manager. If you live far from the property and you have several properties, a property manager will be a necessity. If you don’t have the appropriate property management experience then a professional manager is important. Leaving your rental business under the care of a property manager, such as RE/MAX Infinity Property Management, is overall a good decision to make.