When it comes to managing rental properties, everyone’s situation is different. One of the first decisions you’ll face is whether to hire a property manager to help with your rental business. It’s important to consider the reasons why hiring one may be a good or bad choice. Here are some considerations to help you determine whether hiring a property manager makes sense for your specific needs.
Do you own and manage more than one property?
The more rental properties you have, the more responsibilities you have to keep up with. Acquiring additional properties means that you have to answer to more tenants, which can be a lot of work at times. And, if the properties are not located near each other, then the situation can be even more challenging.
If you start to feel overwhelmed, you may want to hire a property manager to take some of the pressure off of you.
Where is your rental property located?
The further you live or work from your rental property, the harder it can be to manage the on-site needs. It can be very difficult to respond quickly to complaints and requests if you’re not within a short drive.
Do you have a plan of action if a tenant has a major issue while you’re away on vacation? And, what if you’re in an area with no phone or internet service for an extended period of time? Remember that that African safari trip you’ve been planning for months? Who will help your tenant(s) with that unexpected major plumbing leak while you’re gone? Who will help get them situated into temporary housing until the issue is resolved and water damage repaired?
Costs and stress can add up fast. Trying to save money as a DIYer has the potential of actually being very expensive in the long run. This is especially true if you’re not well prepared for the unexpected. Rental property insurance will help with some of the financial burden. But, dealing with large issues takes more than just an insurance policy. If you hire a property manager with a good track record, they will help tend to your properties in the necessary ways. This can help mitigate a lot of your risk as a landlord and rental property investor.
Do you work full-time while being a part-time DIY landlord?
If you are working full-time in a different profession while serving as as a DIY landlord on the side, things can get tricky. Consider hiring a property manager if your day job doesn’t allow you to drop everything to deal with urgent issues. It may be the difference between the success or failure of your investment.
Being a landlord comes with a lot of responsibilities and requires a lot of attention. Nobody wakes up expecting to field a new issue today at one of their properties. But, it’s bound to happen eventually and catch you totally off-guard. A property manager can take away some of these responsibilities. They can work with you to maximize your return investment.
Are you new to being a landlord? Or, just to owning property?
If this is the first time you’re investing in real estate, hiring a property manager is the safe play. This will help you learn more about the process and allow you time to decide if you want to become a DIYer later on. Learning through the process of making ignorant mistakes can be very costly. For someone who is just starting their real estate investment journey, hiring the wrong handyman or letting months pass by before filling a vacancy can quickly eat at your income. Remember the bank loan you need to pay on the other end.
Of course, hiring a bad property manager can also be costly. It’s important to carry out your due diligence so that you can choose the right one.
What does your financial standing look like?
When you hire a property manager, they generally operate on a fee basis and can be costly depending on a few factors. This includes the size of your property, the location of your property, and how many rentals you have. It also depends on what you’re hiring them to manage. Do you just need help with tenant placement services on a one-time basis? Or, do you need full property management services, including maintenance and repairs.
Assess your finances thoroughly and carry out due diligence on any prospective property managers.
Whether you prefer DIY mode vs. hiring a property manager, the PropHub platform allows you to easily switch between either mode at any time. Register for free to learn more about how the power of choice drives everything we do at PropHub to help every landlord succeed.
To read our previous blog post about how to find good tenants, see here!