If you’ve taken a risk and have invested in a rental property, then you may be surprised to see that there is a lot of work that goes into managing your property. Essentially you’re the landlord, so you’re responsible for the entire property. If a pipe bursts, you have to call a plumber. If the HVAC system goes out, you have to call a repairman (or woman).
These responsibilities can be even more taxing if your rental property is a multi-family home or apartment complex. While many people are able to be the property managers of their own rental properties, many seek the help of a property manager or a property management company. Here are three reasons why you should at least consider hiring a property manager for your rental property.
#1: Property Managers Lessen Your Workload
Hiring a property manager will no doubt lessen your workload. If you’ve invested in multiple properties, it can be extremely difficult to keep up with managing all of them. This is even more true if you own properties in other cities or other states.
The typical responsibilities of a property manager not only include tending to maintenance issues, but property managers are also responsible for collecting rent from tenants, meeting with potential tenants to show them the property, and they also advertise any vacancies the property has. Having someone to tend to all of these responsibilities for you gives you more time to focus on other investments and endeavors you may have.
#2: Property Managers Are More Skilled At Management
If you own a single-family rental property within the same area as your primary residence, then it can be very easy and feasible to manage it on your own. The upkeep of your property will be similar to the upkeep of your personal home. However, owning more than one single-family rental property, owning multi-family properties, or owning a combination of the two can be quite challenging.
As mentioned above, one of a property manager’s responsibilities is to advertise vacancies. If you just have one single-family rental, it won’t be too hard to advertise it on rental listing sites. On the other hand, when you have a multi-family rental you’re going to want to have close to no vacancies on the property, and it may be a little more difficult to find a number of suitable tenants. This is where having a rental property management team can ease your worries about finding tenants.
#3: You Still Make Money From Your Rental Property
Of course, hiring a property manager isn’t free. It is still a job that they’re performing, so you’ll have to pay them. Some companies may charge a commission, while others will have a fixed rate. You should also be aware of what exactly their fee covers, such as maintenance and cleaning, so as to not be blindsided by additional fees later.
Still, with paying a property manager or property management company, you’ll be making money from your rental property. After all, you are still the owner of the property, and property managers are only getting a portion of the revenue that the property brings in. If your property/properties is/are successful, then you’ll be earning passive income, and you will have time to focus on other things, such as your full-time job or hobbies.
The main objective of hiring a property manager is to lessen your workload. You are already the property owner once you’ve bought the property, but that doesn’t mean you have to be the manager. You also don’t have to hire a property manager if you are managing just fine with one or maybe even two properties. However, once you start to acquire more properties (in which you might), it is wise to invest in a property manager. They are skilled and trained in managing properties, as well as keeping your occupancy rate high.