Do You Need a Property Manager?

Not all property owners want or are able to properly manage their investment’s needs.

That’s because it usually requires ample time, knowledge, and experience to manage a property.

Are you asking yourself whether to hire or not to hire a property management company?

If you are in the process of deciding whether or not you need a property manager, this post is for you.

It answers common questions that rental property owners ask themselves at this point of their investment journey:

 

1. What skills do I need to manage my property?

Your success in managing your rentals depends on your knowledge and experience in the business. The more you have, the better equipped you are at handling common hurdles landlords face.

Owning a property is a huge investment of your resources. Not only is there the initial financial investment, but it also comes with numerous responsibilities and time commitments as tenants begin to occupy your property.

Losses happen when you run out of time or energy to respond to maintenance needs, chase after rent and more. And these losses can become enormous, especially when housing laws are violated or not met.

This is where having a property manager comes in handy.

They already have the required experience, know-how, skills, and a dedicated team that’s needed to successfully manage your property.

 

2. Will I have the time?

Did you know that managing a property can take more time than a full-time job?

You have to recognize that property management is not just a part-time job, you are on call 24/7.

This is because you need to spend time on the properties when they demand your attention. From tenant complaints, repairs, and maintenance, eviction procedures, to late payments, there is almost always something to get done.

Can you handle that kind of demand? Do you want to?

Is your work schedule flexible enough to accommodate property management duties?

Generally, landlords who have full-time jobs, or investors who own multiple rental properties may not have this time to spare. This can lead to the neglect of the property’s needs, unhappy tenants, and possibly, a high turn-over rate.

If you feel that you won’t have enough time to tend to your rentals and tenants, it’s best you hire a manager.

 

3. How and where do I find good tenants?

A good trick to minimize your stress when running a rental property is by finding good tenants.

Good tenants will report damages that need repairs early before they get worse, are responsible, and pay their rent on time.

Generally, they are also long-term tenants, are pleasant and aren’t a bother to other tenants.

Sounds like a landlord’s dream, right?

To find these tenants requires a strategic process. It includes advertising, thorough screening, filtering, creating lease agreements, and so on.

And if you are not familiar with the process, it can be costly, tiresome and time-consuming.

A property manager will know how and where to find these good tenants. They also have an established tenant screening process in place to do background and credit checks.

 

4. Do I trust someone else to grow my investment?

When you hire a property manager, this will mean that you are handing over the job of maintaining and building your investment.

Are you willing to hand over the reins of managing your property to someone?

Hiring a professional and competent property manager will give you peace of mind that they will care for your property as if it were their own.

Managing it yourself, or even hiring the wrong company, could end with you incurring losses instead of profits.

Reputable property managers will always make sure to grow your business as if it were their own. You just need to make sure that you do your research and hire a company you trust with the job.

 

5. How fast can I respond to an emergency?

Imagine if you live miles away from your property and you suddenly had an emergency.

How will you tend to a plumbing issue that is now flooding your tenant’s apartment?

This is where having a property manager comes in handy.

If you have a property manager looking after your investment, getting these issues resolved becomes easy and more convenient not only for you but the tenant as well.

Think about your travel expenses if you live far away from your property. Often, these costs can be higher than if you were to hire a property manager.

When you hire a property manager to take care of the day to day, you can sleep easy at night. This is just one of the many benefits of working with a property manager.

 

6. Do I know how to deal with different tenants?

Tenants can be demanding, and they want their landlords to tend to their issues immediately.

Is this something that you have the skill and patience to deal with? And what if you have a large number of rentals and tenants?

Different tenants may be calling you at different times of the day and different days of the week.

It’s an endless cycle of repair and maintenance, conflict management and problem-solving. For a first-time investor and landlord, this can be quite overwhelming.

 

7. How much will it cost me?

The last question is: can you afford one?

Note that different property managers charge different rates. This is usually determined according to the monthly rent of your property and the services that you need.

These points and more go into an equation that will affect how much a property management company’s rate will be.

Many managers also charge a tenant placement fee. With every vacancy they fill, you can expect to pay them a fixed amount or even a month’s rent. This will all depend on the arrangement you have agreed to.

 

Do you think you need a property manager?

 

We recommend doing your research and compare property management companies. You can ask around or even ask for referrals. You can talk to landlords who’ve had experience dealing with property managers or read online reviews.

Make sure you are hiring the most suitable property manager that you trust to grow and care for your investment property as if it was their own.