First, you go out and find that perfect rental property. Now, you need to attract great tenants. Then collect rent on time. What if something breaks? Time to fix it yourself or call a handyman. But there are many tasks that a professional property manager will allow you to take care of other things while they handle your property for you. Read on to see the top eight signs you should hire a property manager.
If you’re thinking about hiring a property manager, you may be wondering if it’s worth the expense. After all, you need to pay them which takes a portion of your profits.
Signs You Should Hire a Property Manager
In no particular order, here are the main reasons a top-notch, local property manager could be good for your
1. Overall workload
When you’re managing multiple rental properties, it can become almost impossible for one person to cover all the bases. Dropping the ball could cause major problems for your business. For this reason, outsourcing some tasks can be beneficial for all concerned. For instance, using a financial advisor like Lincoln Frost to help you manage your business finances can help to alleviate some of the strain.
Many landlords who were active in managing their properties became exhausted and eventually decide to hire a property manager. A good property manager has all the skills and knowledge needed to maintain your rentals and you can take advantage of that.
2. You live far away from the rental property
One of the signs you should hire a property manager is that your investment properties are quite some distance from where you live. The reason why is simple. Even if you do get home often, there will inevitably be times when something goes wrong without you there, and being far away will create delays in resolving the situation.
You may not want to bother with things like repairs or evictions – not to mention anything that involves meeting with tenants face-to-face. Good property management companies handle all aspects of the property for you so you can focus on the rest of your life.
3. Too many vacancies for too long
You’ve done everything you could to keep your tenants happy and get them to stay. Yet, after six months, half of your units are empty and your tenants are unhappy. Your vacancies are lasting much longer than they used to. What you need is a property manager.
Every vacancy is one too many. Not only does each vacancy cost money, but empty units also cost landlords credibility with their tenants.
4. You find it difficult to keep up with local laws
This one is pretty simple. If you find you spend hours trying to keep up with local laws and regulations, find yourself managing many investors, and/or are worried that you may not even be operating legally (e.g. collecting rents properly), then hiring a professional property manager is a no-brainer.
At times it can be difficult to keep up with all of the rules and regulations related to renting properties. From parking permits to cleanliness to extra tenants, there are many areas where you could make a costly mistake. Good managers already know the ins and outs of local property management, and can help you avoid problems.
5. Difficulty screening good tenants
As a property owner, finding good tenants can be challenging. If you are a hands-on landlord, you might find it difficult to screen applicants in person. Also, the screening process can really eat up your time and energy.
It is possible to outsource these tasks to an experienced property manager. They can help you find qualified tenants who pay rent on time and respect other people’s property.
How much does property management cost? Do your homework and compare multiple organizations. When you pick the right property management company, the cost should be offset by the benefit.
6. Being a landlord is stressing you out
Being a landlord can be extremely stressful. Tenants will always come up with honest reasons for not paying rent on time. Plumbing problems will most often occur overnight. Then there are all the small issues that accompany each and every investment property.
Managing your rentals can be a full-time job. That might not leave you any time for other priorities in your life.
Instead of stressing out about finding new tenants and billing them late fees, why not hire a property manager to help? Property management companies offer guidance and support when it comes to rental properties. You won’t have to worry about things like late fees or keeping track of income.
7. You are not familiar with financial processes and bookkeeping
If you are not good with numbers you might want to hire a property manager. There’s a good amount of bookkeeping and number-crunching that goes into properly owning investment properties
When you hire a professional property manager, you can leave all financial processes in their hands. It will be their job to keep track of expenses, update your balance sheet, and make sure that your company has enough cash for new investments.
8. You’re just too busy
Here’s probably one of the most obvious signs you should hire a property manager—you are too busy. They handle all the day-to-day management details. This includes things like collecting rents, doing repairs, communicating with tenants, and managing vacancies.
Managing properties is a lot of work. It can easily take up to 40 hours a week or more even without a large portfolio of properties. If you’ve got your hands full running other aspects of your business and don’t have time to take care of all the day-to-day management tasks, then hiring a property manager is a good fit for you.
For a landlord, the thought of managing rental properties can be quite overwhelming. You might already have your hands full running a business and dealing with employees.
But to avoid most of these headaches in the future, consider hiring a property manager. Money spent can well be worth it.