08 Aug When Should a Landlord Hire a Property Management Company?
Investing in the real estate industry can earn you excellent returns and financial gains – if properly managed and maintained that is. If you plan to buy a property and manage it yourself, however, you might want to reconsider your decision. Professional property management companies have a comprehensive duty. Most real estate investors find it essential to hire a property manager to ensure the smooth flow and success of their real-estate investments.
If you’ve ever owned a home, you may understand just how exhausting property maintenance can be. Now consider the scenario where you’re a landlord that needs to be available for your tenants and follow all rules and compliance issues that come with managing that rental property. You may be able to manage your everyday job alongside this responsibility for a short time. However, the fact is, it can be troublesome in the long run. To help you effectively manage your rental property/properties, we have listed a few reasons why property investors might need and want to partner with a professional property manager.
When to Hire a Professional Property Manager?
If you are unsure whether you need to or if it’s worth it to hire a property management company, below are a few essential factors to consider.
Having a property in a location where you don’t primarily reside can be challenging to manage. You may not be able to travel between the two places frequently – as it might be required for property walkthroughs, maintenance, etc.
Long distance makes it difficult to manage maintenance tasks promptly because you rely on virtual research and vendor promises (whom you may not have a trusted relationship with). This inturn could lead to a poor condition of your property, lowering its market value. If you hire a property management company, their team of pros can look after all the different tasks efficiently and with a trained eye.
Property managers are well-versed in providing regular expert assistance to tenants. And full-time managers will also be available for on-site emergency assistance when the need arises. Moreover, they can collect the rent from your tenants without delays via their lease agreement.
Managing a single property may be feasible for you. However, if you have more than one property located in different areas, you may need the help of a team of property management professionals. Think of it as starting a business. When you have a small shop, you may be able to manage all your customers with a limited workforce.
However, once your business expands, you may need to increase the number of your workers to ensure smooth day-to-day operations. When you have multiple properties, you may need property managers to carry out tenant management, maintenance duties, rent collection, marketing, and so much more.
Real-estate investments require free time and dedication. If you work tough shifts or run a business, you simply may not have the time to attend to your properties. Many landlords ruin their properties due to a lack of attention. Hiring a property manager can be a good fit to ensure seamless rental management.
Property managers will manage tenant applications, check their credit histories, create the agreement, and assist in determining the appropriate rental terms based on the current market, all on your behalf. Property management companies also possess refined knowledge of the residential state laws to protect your rights as the landlord.
Lack of Experience
Real-estate investments pay off well. And while this may be correct, you need the experience to invest and manage your properties correctly. If you have poor knowledge of hunting profitable real-estate opportunities, you might consider having the right real estate team at your side. This includes an experienced agent and property management team. These professionals have vast exposure and experience in the industry and can guide you toward fruitful investments.
Moreover, property management firms can effectively manage your tenants and property. They can conduct proper legal screening of tenants, create legal documentation to avoid contract violations and court time, manage maintenance requests and repairs, and so much more.
Real estate investments can seem fun and easy until you realize that managing property maintenance is 75% of the job. The truth is, your rental will never be profitable if you don’t regularly look after its maintenance needs. If you delay your preventative maintenance tasks or house repairs, you may incur more significant losses down the road. There are many maintenance tasks to keep in check. Plumbing, flooring, roofing, HVAC, and kitchen repairs are some of the most common and significant issues.
If you hire a property manager, you’re able to leave the maintenance worries to the pros that do this work every day. Property management firms keep a thorough check of all the needed repairs for rental properties. They have dependable and reliable relationships with trusted, licensed, and professional contractors, residential service companies, and interior management vendors to ensure proper and timely management of needed tasks.
Finding Professional Property Managers
Hiring professional property managers can be tricky. However, there are few items you can check for and questions to ask to make your decision a little easier. If you want dependable property management services, you must opt for licensed companies with years of experience. Property management firms have the expertise and knowledge to effectively manage your real estate assets.
Property management fees range depending on their business structure, but you can typically assume to pay something similar to your monthly phone bill, etc. You can compare different companies to find the right cost-effective solution for you. But at the end of the day, you always want to consider the kind of peace of mind and performance returns your chosen property management partner can provide.
If you’re currently self-managing your rental property or you’re just jumping into the real estate investing industry, the above scenarios might help you determine why you need to hire a property management company. Professional managers can help alleviate the stress and time constraints of managing your rental property/properties. You can achieve many long-term benefits from your real-estate investments by paying a small portion of the monthly rent profit to a reliable property management partner to handle the day-to-day tasks for you.
Choose 1836 Property Management
If you’re investing or plan to invest in the greater Austin, Tx, area, reach out to our team of professional Austin property managers today to assist you with your real estate investing ventures. At 1836 Property Management, your success is our success.
By: Kayla Gonzales, 1836PM Marketing Manager