To manage or not to manage, that is the question. And it’s a big question at that. Whether you are a seasoned real estate investor with a rental property or a newcomer to the world of investment properties, you might be asking yourself whether it is smart to hire a property management company. Ideally, a property management company will take the hassle out of maintaining a property, finding tenants, collecting rents, and all things related to your rental property, but the services come at a cost. So when is it a good idea to hire a property management professional?
What to Expect?
First, let’s discuss some of the expectations you should have from a property management company. There are a number of services that they should provide so that you can rest easy knowing your property is cared for effectively.
Some of the services you can expect from a property manager include, but are not limited to
- Finding and screening tenants
- Removing problem tenants
- Maintaining properties through a network of contractors including electricians, plumbers, and other professionals
- Managing owner expectations and providing excellent customer service
- Collecting rent
- Responding to tenant complaints
- Ensuring compliance with local bylaws and regulations
Why Hire a Property Manager?
So now that you have a sense of what to expect from a professional property management company, you’re asking yourself why you’d want to hire a property manager. There are many reasons, but they all boil down to one key benefit – they take the hassle out of managing a rental property. From dealing with problem tenants and tenant complaints to chasing tenants for rental payments, managing a property can be a very time consuming and challenging task. A professional property manager has the skills and expertise to handle the job efficiently so that you don’t have to worry about it.
For most investors, working with a property manager is the smart decision. First and foremost, you likely have more than one investment property, or if you’re just entering the property investment market you likely have other work responsibilities that make it difficult to effectively manage a property. If you have your own business or career to focus on, your property manager will actually save you time and money.
In addition, the most experienced and successful real estate moguls know that they can’t be an expert in everything. Property managers have connections in the community to ensure your rental property is maintained by experts in their field. Obviously, you’re not likely to become an expert janitor, plumber, electrician, landscaper, and handyman, but it is also very time consuming to build relationships with these experts in your community. Your property manager already has the connections to manage your property.
Ultimately, when deciding whether to manage your property on your own or hire a professional, you need to ask yourself how much time you have to put into the venture. Most of us are already busy professionals and a property manager will help optimize your return on your investment property.