Do You Need a Property Manager?
Renters Warehouse Blog
When many people think about the benefits of hiring a property manager, usually convenience comes to mind.
But a time-savings isn’t the only thing that property managers have to offer. They also bring experience and professionalism to the table, and can provide you with peace of mind as well. In some cases, they can even help you to maximize your returns. For instance, since they’ll be experienced with filling vacancies and screening tenants –a good property manager will be able to help you reduce downtime, and keep your property cash flowing. A win-win for everyone!
Take a look at these benefits of hiring a property manager:
- They’ll Find Qualified Tenants for You: This means lower vacancy rates, and less downtime in between tenants.
- They’ll Take Care of Maintenance and Repairs: Maintenance and repairs can help you to keep your investment in good condition, preventing future, more extensive repairs. This will keep your tenants happier as well.
- They’ll Handle Rent Collection: And can even help to increase on-time rent payments, since they’ll be prompt and proactive in responding to unpaid rent.
- They Can Help You Navigate the Legal System: Landlords have certain responsibilities and obligations, and landlord-tenant laws vary from state to state. A good property manager will be familiar with relevant legislation and will be able to help you stay in compliance.
- They’ll Serve As a Point of Contact for Your Tenants: Helping to alleviate some of the pressure. No need to worry about 2 a.m. phone calls.
Wondering if you could benefit from a property manager? Here are a few things you should consider if you’re still on the fence.
Do you live far from your rental?
If your rental property is located out of state, or a good distance from where you live, then hiring a local property manager isn’t a bad idea. This is especially true for landlords who live out of state but is also the case for landlords who live a few hours away and can’t keep a close eye on the property or be readily available for any emergencies.
Do you own multiple rental properties?
Managing one rental isn’t too bad, but as your portfolio grows, so do your responsibilities and the tasks. Before long, you’re spending all of your time trying to find tenants and keep up with repairs, which means less time for overseeing your investments or growing your portfolio. If you’re thinking about scaling, a good property manager is invaluable.
How much experience do you have?
You’ve done plenty of research on the area and neighborhood. You’ve run the numbers and understand what makes a good investment. You’ve made the purchase. Now what? Overseeing a rental property is a whole different ballgame. If you don’t have much experience as a landlord, then you’ll want to ensure that you do your research ahead of time so that you know which pitfalls to avoid. Or, you could hire a property manager to help you get it right. There is a lot more that goes into renting than simply finding ‘a good tenant’ (although that’s certainly part of it!) and you don’t need to learn everything the hard way.
Do you high have vacancy rates?
High vacancy rates can be damaging to your bottom line. A property manager can help to keep your vacancy rates low –and reduce time in between tenants. (At Renters Warehouse, we place tenants within 11-17 days on average). Learn more about reducing tenant turnover.
Here are a few tips for keeping vacancies down:
- Price your rental right: The sweet spot; not too high, not too low is key for helping your property to rent faster, and keeping your current occupants in place longer.
- Know where to advertise: A good property manager will be able to get your property in front of a wide audience, helping it to rent faster.
- Conduct careful tenant screening: A good tenant screening process will help to ensure that only qualified applicants, who are able to pay the rent and abide by the terms of the lease, gain access to your rental.
Do you enjoy hands-on management?
Some people are more hands-on than others. If you enjoy overseeing your rentals and doing DIY work from time to time, there’s no need to rush out and hire a property manager. If, however, you’d rather not be spending your free time doing repairs and maintenance around the rental, then you’ll want to consider outsourcing.
Do you have time?
Being a landlord can be a full-time job. Especially if you have multiple properties, or own property out of state. Even if you enjoy the aspect of being a hands-on landlord, you might not have the time, especially if you have another job. In this case, hiring a property manager is an ideal solution.
Are you familiar with landlord-tenant laws in your area?
As a landlord, there are a number of rules and regulations that you’ll need to follow. There are landlord-tenant laws at the federal level and state level as well. Then there are local ordinances that you’ll need to be aware of. State laws often concern issues like rent increases, security deposits (how much you can charge, deadlines for processing and returning them), notice that you’re required to give your tenants before entering the property, the eviction process, and more. A good property manager should be familiar with landlord-tenant laws in their state, and will be able to act in your stead to ensure that the property is managed in a way that’s in compliance with the regulations.
Can you afford one?
Of course, before you enlist the help of a property manager, you’ll want to run the numbers to make sure it will fall within budget. If you’re looking for a rental property to invest in, then it’s a good idea to factor in the cost of a property manager from the start. With this approach, you’ll have flexibility later on. If you do decide to enlist a property manager down the road, you’ll be able to, while still generating decent returns that are in line with your goals.
You don’t have to be a new landlord to benefit from a property manager. In fact, many experienced landlords and investors choose to hire property managers to help them manage their rental portfolios. This allows them to outsource the day-to-day work that’s involved with overseeing rentals, freeing them up to focus on other aspects of investing. At the end of the day, it’s about finding a solution that works best for you; one that’ll help you to reach your investing goals.
Owning rental property can be financially rewarding, but overseeing the rentals can be a lot of work. A property manager can help to make the prospect of investing in rentals hassle-free. They can also help you to ensure that you’re getting the most out of your investments. Visit Renters Warehouse to see how outsourcing can make it easier for you to grow your rental property empire.
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