Property management is a tough occupation. However, it certainly is not an unimportant part of the real estate and investing arenas. For property owners, property management companies are vital.
We should not underestimate the importance of property management. Some property owners can truly earn passive income when they lean on the assistance of property management professionals.
Your realtor will likely help you purchase an investment property within a month or a couple of months and then you may never see them until it’s time to buy or sell again. The property manager must find the best way to rent your property, keep in touch with tenants and continuously assist you with maintenance issues – and all of this on a daily, monthly and even yearly timeline.
Unfortunately, a lot of homeowners decide to sell their home rather than turn it into an investment. And we’re here to say that’s just a wasted opportunity for long-term financial gain!
Landlords don’t think they need management companies
Some property investors don’t think property managers are necessary. They think they can handle operating rental units and maintenance with tenants in place, all while having a full-time job and possibly even a family that needs some of their time as well.
These landlords may only have one property on the market, therefore, it’s a bit easier to stay organized. And some other self-managing owners may have several rentals, and still try to oversee the business alone. But the plain truth is that managing even one property by yourself and doing it incorrectly could lead to BIG headaches.
For instance, keeping up with legislative changes on the local, state and federal level is very important. We can’t stress that enough. But no one specifically seeks out landlords to tell them, “this changed,” which if left unchecked could mean legal troubles. The harder it is to stay up to date with new legislation and rules, the more necessary it is to have a professional property management partner. Legal variables are constantly changing.
However, even though some investors may find the process difficult, some often don’t realize that they can hire a property management company to help them with the complexities of being a landlord.
And some landlords may think that paying a part of the rent to a management company is a waste. But in the grand scheme of things, property management fees are comparable to many of your regular monthly bills.
So investors should be asking themselves what their time and energy is really worth?
Some landlords believe property managers provide minimal assistance
When a landlord hires a property manager, they should never have to speak one-on-one with their tenant. However, some self-managing landlords choose to hire “assistants” to help with some basic day-to-day communication or maintenance.
Some property management companies (usually the discount companies) only help the owners with phone calls. And some don’t always show up on location when it’s needed. These types of managers might not even communicate with the tenants at all, and if and when the owner calls about an issue, they may only give advice instead of stepping in on behalf of the owner to resolve the problem.
A property manager could prepare the property to be rented, work on the papers and put up the advertisement online, but then put down the owner’s phone number. This does allow the property owner some control over what happens with their rental. But the question is, does the owner have the time, energy, and know how to manage it all appropriately?
Well the good news is, there are professional full-service, turn-key property management companies with years of experience out there! If you want minimal assistance, you can likely find a property manager that can do that – but should you?
Investors may have had a bad experience with a previous property management company
A property owner may have had a bad experience in the past with a property management company. Understandably, if you were not pleased with a property manager or if their actions landed you in legal trouble or lost you money, you might lack trust.
Property investors hire property management companies to save time and gain a profit, while remaining mostly hands-off with the day-to-day management process. However, on some occasions, certain discount property management companies or unprofessional ones end up bringing more damage than comfort.
If an inexperienced or unprofessional employee was assigned to the investor’s property, that may have provided opportunity for issues and challenges. As property managers deal with property law, tenant rights, property codes and so many more variables that require not only attention to detail, but experience and know-how.
However, although one property management company failed you, it doesn’t mean the next one will. And leaning on partners that truly know what they’re doing and really care about your investment and financial success, is always a plus. It’s best to keep in mind that not all businesses operate in the same way. Some are more professional, experienced and offer more inclusions than others. If you choose wisely, you will achieve a lot of success.
The key to choosing the right property management company is research. You should read reviews and take a look at references. Come prepared with questions and know what your goals are and what you’re looking to gain out of the relationship.
The Bottom Line
Professional and experienced property managers are important to a successful real estate investment. Especially, if your goal is to have your investment more passive than an active part of your life. However, they don’t always get much credit or enough attention. Being a property investor doesn’t have to be so challenging – but you need the right team on your side.
At 1836 Property Management, we have years of experience helping investors just like yourself be successful with their rentals. Contact us today to find out how we can help you improve your real estate investing ventures.
bdm@1836pm.com
512-994-4323
By: Kayla Gonzales, 1836PM Marketing Manager
