Every property investor has a choice to make at some point: “Is it worth hiring a property manager or should I manage the properties myself?” This post will help you decide.
What do property managers do?
The role of a property manager is to take care of the day to day management concerns of your property portfolio. This means taking care of all contact with the tenants, collecting rent, marketing your property, handling maintenance and more. This frees up your time, making sure you don’t have to worry about anything other than growing and enjoying the rewards of your investments.
The flipside is that you have to pay them. And that cuts into your profits. What you decide will depend on a number of things. Here are 4 reasons you might decide to hire a property manager:
1. You Don’t Want The Day-To-Day Hassle
Some landlords want to keep it all in-house and have absolute control. No middle men, no reason to pay or hire or deal with anyone else. They don’t mind speaking with or dealing with tenants and they’re happy to help make a repair when needed. And, when worst comes to the worst, they’re not shy in asking for their money.
But that’s not everyone, nor should it be. Maybe you’re not that handy and have no idea how to fix a dishwasher. Maybe you’re looking for a safe, reliable investment with as little hassle as possible and you don’t mind paying a little something each month for that freedom and peace of mind.
If that sounds like you, go ahead and find yourself a trustworthy property manager to take care of everything for you and enjoy your investment.
2. You Have Too Many Properties To Handle By Yourself
Some landlords require property managers by necessity. When you have a large portfolio it just isn’t realistic to handle all the problems yourself, chase up all payments, fix what needs fixing and more.
Even if property investing is a full-time business to you, you may well need to hire someone to help you manage the properties when you’re portfolio becomes an empire.
3. You’re Already Too Busy And Don’t Have The Time
Your portfolio isn’t huge and you don’t mind the day to day management but you have a full-time job and a family to think about and you can’t just drop everything when the phone rings and the heating needs fixing.
That’s understandable. And a property manager can help fill the gap on your behalf.
4.You Own Investment Property Outside Your Local Area
Maybe you identified a hot market and were courageous enough to take advantage of opportunities further afield. Maybe you even have investment properties abroad. If this is the the case then you have little choice but to hire a property manager to take care of everything for you.
Can you imagine you get called out because the hot water isn’t working when your tenants move in, you travel hours to get there only to realise they hadn’t turned it on properly? That’d be enough to drive anyone crazy.
I hope you’ve found this useful. If you’re still wondering whether or not hiring a property manager is for you, here are few more valuable things they’ll be able to help you with, as and when they occur:
- Setting the right rental rates. Sure you can check the classifieds and get roughly the right rate but what if you’re low balling and a property manager gets you an extra $50 a month? Could go some way to paying your investment in a property manager for itself.
- Maintaining relationships with contractors. It’s unlikely you’re a plumbing, building, surveying and electrician expert all in one. You’ll need contractors at some point. A property manager will take care of that for you.
- Helping you with legal issues. As a landlord you have to comply with certain laws and update as laws change. That’s a pain. A property manager will help you.
The choice is yours to make. There’s no right or wrong answer as every real estate investor’s situation is different. It’s rarely black or white. But if you’d like more time, less stress, never having to deal with tenants again and you’re willing to pay up to 10% of your rental income for the help, then go ahead. You might be glad you did.
Thanks for reading! Please comment and share if you enjoyed my article…And if you have questions about Real Estate or anything else give me a call, I answer my own phone…619–839–9757