It’s hard to avoid the fact that owning and renting real estate properties is a time-consuming endeavor. If you have multiple properties, it can be very draining.
What happens when you reach the tipping point? This is when you decide that your time is more important than managing a property. Or what if you bought an investment property in another country?
It’s time for you to find a preferred property management company.
What exactly do Property Management Companies do?
Property management companies are the intermediary between you and prospective tenants. They manage tasks like collecting rent, maintaining the property, and finding/vetting renters.
Two big benefits for property owners who own rental properties are:
- These save you time and money.
- They have extensive experience with managing tenants and properties.
Property managers are responsible for managing tenants. They are responsible for marketing the rental property and finding suitable tenants to fill any vacant spaces. Property management companies are familiar with the local area and know where to advertise in order to attract the highest quality tenants.
They will then screen the applicants, gather applications, run background checks, and so forth. They will assist you in tenant selection and protect your investment.
After screening potential tenants, property management companies will execute the lease agreement. They are responsible for managing emergencies, maintenance, coordination of move-ins/outs, and (in rare cases) evictions.
What are the best times to hire a property management company?
1. Too many properties are too numerous to manage on your own
If you want to steadily increase your real estate portfolio, there will come a time when it becomes difficult for you to manage the work on your own. This number will vary depending on what your other responsibilities are (work, family, etc.). It usually reaches 3-5 properties.
If you manage multiple properties, it can be exhausting to just take care of the basics. It is wise to hire a property manager when you reach this point.
2. You may not live in the same area as the properties that you own.
It is very different now than it was a decade ago. You can now rent single-family homes nationwide with data-driven real-estate marketplaces.
This will allow you to purchase investment properties in other markets, which opens up more investment opportunities. A property management company is the best way to diversify your real estate portfolio.
Your property manager will handle everything, including interviews with potential tenants or when a pipe bursts.
3. There is no time
We understand that time is valuable. As a professional, you have many responsibilities beyond your real estate investments. They all require your time, regardless of whether it is your job, your family, or your hobbies.
It’s time to look into hiring a property management company if you feel you are making huge sacrifices to become a landlord.
4. It’s not your passion to be a landlord
It’s hard work to be a landlord. You don’t want to be passionate about your tenants or the responsibilities of being a landlord. It’s time for you to hire someone to manage your investment.
With the right property management company, you can become a successful real estate investor who is completely hands-off.
5. To have it managed, you’re willing to pay a little more
In short, you value convenience and time over total revenue.
You might make more money if you manage your rental properties yourself. As we have already mentioned, there are many situations in which it is more sensible to hire a company to manage your property. In most cases, the sacrifice in income for peace of mind is worth it.
We’ve also seen cases in which paying for professional management of your property can reduce your overall management cost.
This includes controlling maintenance costs and avoiding problems that could result in legal fees, vacant properties, or damages from mishandled repairs.
Why you shouldn’t hire a property management company
If you are passionate about being a landlord, you shouldn’t hire property management companies. If property management is your passion, you can manage them yourself.
You may also find it more practical to manage 1-2 properties locally, especially if they are close to your home.
A property manager is a decision that balances money and time. A landlord who feels managing their property portfolio is too time-consuming or can afford a property manager may make the right decision.
However, professional property management may be too expensive for landlords who want to manage rental units themselves.