When to hire a Property Manager
When to hire a Property Manager
Today property owners look for ways to manage and look over there properties. For this, they could hire a property manager. Some rental property does not necessarily need a property manager, but when they are being used to buy the exact property and the right landlord, the property managers can be very helpful to manage the property. Why should a landlord hire a property manager? And why should he hire a property manager? These are some questions that would help landlords and property owners to see if hiring property managers would be helpful to them and their properties.
- Is your rental property close to your home?
Today most property owners and landlords live far away from their properties and living far away from your properties makes it harder to manage. If a property manager or a landlord lives close to his property, it will make it easier for him to maintain it and respond quickly in time of emergency. Living far from your property would also make it harder to find tenants, and if tenants are for it would make it hard to handle their complaints and to take care of some maintenance issues. It would also take your time and money to go and check up on your property so to save money you can hire a property manager to help you to manage your property.
- How many units do you have?
As the number of your property units increases, so the number of tenants increases the maintenance responsibility also increases. The increase in your property units would also require you to spend more time in regulating the cash flow of each of the properties. Property owners and landlords that own many property units are advised to hire property managers to manage the properties for them because managing many properties alone can be really stressful.
- How much experience do you have in managing properties?
When investing in real estate and you don’t know anything about property management getting a property manager is the best option to help you. If you start property management without any experience learning as you go on would be a very expensive course. Also, a property investor who is new and just starting the business could make a mistake of hiring a wrong repairman and can be accused of discrimination because the fair housing laws were not clearly understood. If you have low experience in property management its better you hire a property manager. Also hiring a bad property manager can spoil your investment.
- Can you afford to hire a property manager?
Hiring a property manager is not free, so before you hire a property manager, you need to check your finances. The property managers are not free; they charge about 4% – 10% of the monthly gross income of the property. A single-family home monthly gross income could be about $1000, and the property manager could be paid about 10% that is $100 paying the property manager 5% that is $50, and that isn’t a good pay that would attract good professionalism. Property managers also charge for tenants placement fees. And these fees vary.
- Do you have time to manage your property?
Property owners and landlords have full time jobs that take most of their time, so if you find yourself in the same condition and you are just investing in property, you wouldn’t have time to manage your property in that case you need to hire property managers to help you in managing your property. If you also realize that property management is taking more of your time and money than you expect that it would, and it is stopping you from concentrating on your other job or not allowing you to check out some other investment opportunities hiring a property manager is the best option for you.
- Are you willing to give up control?
Most property owners and landlords always want to be in control of their property. Property managers are going to be in charge of everything concerning your property from collecting rent, maintenance, paying of taxes, and all are you ready to give up those things to the property managers. Some the property manager may not have the same passion for your investment as you do.
- Are you willing to take on the liability of a property manager?
Property managers have the ability to make decisions regarding your property on your behalf the can also make mistakes on your behalf, and those mistakes can cost you dearly the contract between the property owners and the property managers are contain something called the “hold harmless” this protects the manager except on the grounds of high negligence. So if the property manager violates the Fair housing laws, the property owner or the landlord would be held on account for this. The property owner is always held in an account for any mistake that the property manager makes.
- Do you have a high vacancy rate or problems with cash flow?
Most property owners and landlords are not so good and skilled in finding and screening of tenants. Property managers are very skilled in finding tenants and can quickly screen them. The property managers also have reliable workmen and repairmen that are cost-effective; they can also manage emergency quickly and immediately. Property managers would also help in regulating monthly and yearly cash flow. The property managers also the landlord and tenant laws well, and that reduces the risk of a lawsuit.
- What is your tolerance for dealing with tenants?
Property owners and landlords have less tolerance in dealing with tenants. And it is also very stressful dealing with evictions, maintenance, and emergencies. Property managers are skilled in this the understand the landlord and tenant law well, and they can serve as middle man or buffer between the landlord and tenants. Tenants also tend to behave better when dealing with a third party. So getting a trusted property manager to take care of your property is often the best option.
Checking the questions above would let you see if you need to get a property manager or not.
