Many landlords face the question…
Do I really need that property manager?
We’ve covered the basics by establishing what property managers do. Now, it’s time to understand if professional management services might be a good fit for you.
In this article, we’ll highlight the key advantages of working with a professional property management company.
Time – Do you want more free time?
Property management duties consume time. Do you have a work/life schedule that supports the heavy time investment required?
It’s important to consider that emergencies need a timely response from the landlord. It’s a justified expectation from the tenants that you’ll address situations as quickly as possible.
If you have a full-time job or own multiple rental properties, you might not have the flexibility to address tenant issues in a timely manner. Neglecting the needs of your property and its tenants is a surefire way to reduce the value of the rental property, and to lose money to a higher turnover rate.
If you have other time investments going on in your life, you might benefit from hiring a property manager.
Experience – Do you have the right skill set to manage your own property effectively?
Knowledge backed by personal experience predicts success in managing a rental property.
There’s a great chance of making many mistakes when learning on the go. In some business sectors, it’s not a bad approach. In property investment though, housing laws and other unexpected aspects set you up for the potential of incredible financial loss and liability.
Reliable property management companies diminish these risks because they have years upon years of relevant experiences. When they are backed by useful skills and a strong workforce, you can relax while they take care of your rental property.
Choosing Tenants – What’s your screening process?
Lets’ face it, finding good tenants isn’t always that easy!
There are times when seemingly perfect people turn out to be problematic tenants. Plus, the selection process and its various outcomes may create a lot of stress.
A good property management company utilizes every aspect of a background check to do a thorough job of selecting the best tenants. It’s not impossible to do this all yourself. But it definitely consumes time and may become an emotional burden.
Hiring a property manager puts a shield between you and the potential stressors.
Communication – Are you willing to talk to your tenants when needed?
Even if you love talking to people and solving problems, time-sensitive and demanding communication with tenants can become overwhelming. This is especially true in cases where you have more than one property.
For example, you might get two unexpected situations in different properties at the same time. How do you prioritize if they seem equally urgent?
When all the complaints, repair needs, and maintenance requests pile up, you might need some help! That’s where having a property manager comes in handy: their job is to keep that line of communication open, and to address tenant concerns in a timely manner.
Trust – Would you trust a property manager with your investment property?
Trust is an important part of any transaction. When you hire a property management company, you will trust them with your investment.
For some people, this might be a challenge because they aren’t sure if the other party is responsible enough. Hiring a company with few experiences, if any, could end up creating serious losses instead of the expected returns.
Choosing a reputable company is essential. Check their credentials and ask for references. Let them know that you’d like to see case studies, if possible.
Emergencies – Are you prepared to handle emergencies in a timely manner?
Landlords aren’t expected to arrive at the speed of an ambulance. But for many tenants, the anticipated reaction time isn’t that far off from actual emergency services.
And in some cases, the situations are real emergencies that do need swift intervention. If you live in another area, how quickly could you respond?
And imagine there’s flooding in one of the properties at four in the morning. How will you respond if you live out of town?
Having a local property manager is key in these situations. Responding to emergencies is an important part of owning rental property. Handing this responsibility over to the property manager could save you from lost time, wracked nerves, travel expenses or other unexpected costs.
Costs – Is it worth the costs?
We have reached the final frontier before making the big decision!
You need to be sure that you can handle the cost of hiring a property manager. And you need to determine if that cost is worth the added benefits.
The particular cost depends on many factors, including the number and type of needed services along with the size of your property.
Still, you can be sure that most property management companies charge anywhere between 5% to 10% of the net rental income.
Let’s say that your property rakes in $1,500 in rent per month. If they charge 10%, you need to give away $150. And in the case of a 5% fee, you’ll pay only $75.
Still, you should keep in mind that managers might apply a tenant placement fee as well. In other words, you’ll pay a fixed amount or a month’s rent for every vacancy filled by them. The particular fee depends on your negotiated contract.
Final Decision – Are you ready to partner with a property manager?
As you can see, everything has a cost. The question is whether the cost is worth the added benefits of professional property management.
Looking over the main advantages of working with a property manager will help you determine if you’ll benefit from professional management services.
Going through and answering these questions honestly should help you in deciding whether you can benefit or not.
But don’t stop there!
We recommend that you continue the learning process until you feel you truly understand and are ready to make the decision.
If you have any questions, gives us a call and we’ll do our best to point you in the right direction!
If you’ve decided you ready to partner up with a professional team of property managers, give us a call and see if we can be a good fit for your needs!
Do you want to team up with us? Contact Rogue Real Estate Sales & Property Management!