As an owner of investment properties, you're always looking for ways to cut costs so you can increase your profit margin. One of the costs you might be considering is whether or not to hire a property management company. A lot of landlords think that if they manage the property on their own, they can save a lot of money.
However, that's not always the case. So, should you hire a property manager for your investment properties?
Here are five things to consider when you're making this big decision.
1. How Many Properties Do You Own?
There's a big difference between trying to manage one property and managing five properties.
Even with just one investment property to manage, it can feel like a full-time job when things start to go wrong (tenants not paying rent, repairs needed left and right, etc). But when you're juggling multiple properties, it's nearly impossible to manage them all on your own.
If that's the case for you, then you should definitely work with a property management company to either help with the duties or to take them over altogether.
2. How Far Away Do You Live?
Managing a rental property requires you to visit the property frequently to perform home inspections, complete maintenance tasks, and do repairs as needed. If you live far away, this just isn't possible unless you work with a local property manager who can be your eyes and hands for the property.
If you live far from your property and you work with a real estate manager, you can limit your visits as much as you want. The property manager will report back to you on your property and take care of all the duties that require in-person work.
3. How Knowledgable Are You?
What do you know about the local real estate market, how to market your property, writing a lease agreement, or doing repairs for your property? Unless you're very knowledgable in all of these areas and everything else that you'll need to do as a landlord, you should hire outside help.
Property managers have a deep understanding of everything that goes along with renting out an investment property, and they have a ton of experience handling any issues that may arise.
You shouldn't leave your investment up to chance and risk cutting corners on things that need extreme care and attention. Leave it to a company that has the knowledge and experience to get the job done right.
4. Are You Detail-Oriented?
One of the most important traits of a landlord is the ability to notice details and small things that can or will go wrong on the property. Without a keen attention to detail, you can easily overlook issues with the property, issues with your tenants, and more.
If you're not detail-oriented, work with a property manager. Not only do they know what to look for, but they can pick up on small details that you wouldn't normally overlook or ignore.
5. How Busy Are You?
Do you work full-time, spend your free time raising a family, or love to travel a lot?
Managing properties can become a full-time position, and one that doesn't allow for breaks or time off. You never know when the air conditioner unit will die or a tenant will break a lease agreement.
If you're busy and don't have time to give your landlord duties the full attention they need, you absolutely need to work with a property manager. That way, you can focus on the rest of your busy life without worrying about neglecting your investment property or your tenants.
Yes, You Should Hire a Property Manager
Unless you want to be a full-time landlord, you should definitely hire a property manager to help with all of your properties. Working with a property management company will save you time and money in the long-run, so it's an easy decision.
Here at Professional Real Estate Management, we will take care of all of your investment property duties including filling vacancies, collecting rent, performing maintenance and completing repairs, and much more. Contact us to learn more about how we can help you manage all of your properties.