The vast majority of landlords prefer to manage their properties directly or via a designated resident manager.
However, if you have a huge rental estate, limited time in your hand, or live far away from your property, the idea of hiring a property manager might make more sense.
Property owners who prefer a hands-free management style will also find the option very attractive even though it may cost a little more to bring on-board a property manager like myHomeSpot.com.
Before you decide to hire a property management company, it is important to weigh the pros and cons of such an undertaking carefully. Here are some of the things to consider when hiring a property manager.
The Proximity of Your Rental Property to Where You Live
Managing a far away property from where you live can be daunting, especially when handling everyday occurrences such as client complaints, dealing with emergencies, and critical utility maintenance.
The distance factor can also make it difficult for the property owner to collect rent more consistently.
Because of these factors, homeowners who want to keep their property in top shape and save money are highly advised to seek a property manager.
You can find qualified project managers by interviewing prospects, seeking friendly recommendations, and checking real estate directories.
Having Property Management Experience?
Managing a property is never easy because you need property management skills and experience.
For property owners with limited experience, hiring an experienced property manager can help the owner avoid costly mistakes such as hiring the wrong repairman and not being cognizant of the Fair Housing laws.
The law forbids all forms of housing discrimination. Also, property owners whose properties have been roped into the affordable housing program should be aware of the need to comply with the law to qualify for tax credits, grants, low-interest loans, and other incentives.
As you eye a property manager, always remember a good hire will go a long way to safeguard your investment.
Level of Investment in Property Ownership
The decision to hire a property manager can also be impacted by the number of units you own. Owning a higher number of units often translates to more responsibilities and challenges.
A complex with many housing units will always have tenants with maintenance issues and complaints that need to be addressed quickly and in-person on a typical work week.
If you live far away, things can boil over when multiple vacancies, evictions, and critical legal commitments arise.
To save the money that goes to track rental income and long-distance traveling, a more viable option would be to hire someone akin to a residential property manager.
Sufficient Time to Manage Your Property
It may not be plausible to hire a property manager if you have sufficient time in your hand. However, if you are a property owner with a full-time job or commitment, hiring a property manager to look after your property may be the wise thing to do.
The property manager will dedicate his or her to the property and ensure it is always occupied. This will give you sufficient time to attend to your work and other pressing matters as you reap the benefits of your investment.
Little or No Interest in Controlling Your Property Estate
Having a low interest in property control will push you to hire a property manager. Before handing over your property, it is important to know if you are willing to surrender the hold or control you have over your property.
This means giving up control over rent collection, handling lease applications, and filing taxes, among other responsibilities.
Even as you do so, it is important to probe if the incoming manager is passionate about the responsibilities you are about to hand over to avoid compromising the gains you have already made.
Cash to Pay the Property Manager
Whenever a property manager is being brought on-board, questions regarding payment agreements always abound.
As a property owner, you need healthy finances to hire a property manager. Most managers charge a percentage from the monthly rental collections. The amount of money offered can range from 4% to as high as 10% or higher.
Charges are usually higher for single-family rental units and lower for housing complexes with many units. For example, for every single-family housing unit that brings in $1,500 a month, the property manager can receive $150 if you use the 10% stipulated above.
If the property owner offers incentives such as a tenant placement fee, the property manager’s amount will be higher.