There is a notion among rental property owners that the more things they can do the more money they are saving. While this may work for some items it does not apply to every aspect of the property. With every task you perform there is something that must be sacrificed. In many cases what you give up is worth more than what you put into the property. Whether you own one single family rental or a portfolio of multifamily properties you should at least consider taking on a property manager. Whatever you lose in your bottom line will be gained with increased time and decreased stress. A property manager may allow you to focus on other areas of your business that can produce greater amounts of revenue. The right property manager can make you forget that you actually own rental property. Here are five reasons why you should consider hiring a property manager.
- Finding Tenants. One of the most difficult tasks that landlords face is finding good tenants for every lease. It is not enough to fill the vacancy you need to find the best possible tenants. If you become frustrated and annoyed with the process you will eventually crack and rent to the next interested tenant that comes your way. Here is where a property manager can offer some perspective. Instead of rushing to the house for every showing your property manager will take care of these appointments. Not only will they handle property showings but they will screen every prospective tenant so you know exactly who you may be renting to. One bad tenant will completely change your view of the property. Instead of looking at cash flow and equity accumulation you will think about eviction and lost revenue. With good tenants your property will run like the well-oiled machine it should be. Your property manager will work to make that happen for you.
- Handling Repairs. No lease is without some minor repairs. Unless your property is completely updated you can expect at least a few phone calls during the course of your lease. Even if these calls are minor in nature you still need to find the time to get the work done. The longer you make your tenant wait the more you open yourself up to issues down the road. Not only will you need to call around to find someone to get the work done but you need to drive to the property and meet them at the property. This time consuming task is something a property manager will handle. In most cases they have established relationships with plumbers, electricians, landscapers and general handymen that can quickly get things done. They will meet at the property and make sure everything is finished to completion. You still have to pay for the work but you don’t have to drop what you are doing and find someone to complete the job.
- Collecting Rent. Everything in a rental property revolves around finding good tenants and collecting rent. If there are delays or issues receiving rent you need to stop what you are doing and redirect your focus. Some landlords do not have the right personality to chase tenants for rent. They are either too stern or too lenient and let a few days slide. A good property manager acts as a buffer between you and your tenants. They initiate contact with your tenants as little as five days after the first of the month. They know that they do not get paid from you unless the rent is received. This motivates them to do everything legally to ensure the tenant sends their check in a timely fashion. In most cases you are only notified if there a problem and don’t even have to worry about depositing the funds in your account.
- Local Rules And Regulations. Not knowing or understanding local rules and regulations can open the door to major problems. Even if you are a seasoned landlord it can be difficult staying on top of changes in zoning or local housing rules. This is one of the areas where your property manager will help. Not only is a good property manager on top of local laws but they are updated on fair housing and other federal laws as well. This is especially important if you rent to college students or have town specific rules that are constantly changing. Breaking these rules can mean a hefty fine or in some cases the loss of a student housing permit.
- Less Stress And More Free Time. Dealing with even one rental property is a lot of work. You may not have any issues for several weeks then out of the blue be hit with two in one week. When issues do hit they require immediate action. You need to put whatever else you are doing on the back burner until the problem is figured out. This not only increases stress but takes away from growing other aspects of your business. A property manager takes care of your rental property and allows you to run your business. You don’t have to deal with tenant phone calls at all hours of the night. You don’t have to drive to the property to assess a running toilet or handle a tenant dispute. Some months you may question if a property manager is really needed and others you will be thankful you have one. You can’t put a price on being able to run your rental property stress free and without constant badgering.
There are times in every business when you need to think about the big picture instead of just the bottom line. A property manager may cut into monthly profits but usually help increase it in other areas.
