For Investors rental properties are one way to build wealth. Some property owners manage their property themselves and others hire a property manager to manage their property. People who choose to manage their property themselves may save money management fees but they need to handle all the responsibilities of a landlord.
Some real estate investors decide to hire a property management company before even purchasing their first rental property. Others think that hiring a property manager at 8-12% of the monthly rental value of the property is worth the money or not. Below we will discuss some of the points, you should consider as a real estate investor to understand hiring a property manager is worth it for you or not.
Firstly, Understand Your Property Management Needs
Some of the investors aren’t prepared for the work involved with being a landlord. While some may able to find properties that require little time, energy and efforts in maintaining. Others underestimate the management of a rental property. And some consider property management fees non- affordable or irrelevant.
Be Realistic About Your Experience
If you own your own home and have an idea of what landlords do with rental properties. You may also be aware of the skills necessary to deal with tenants and management issues you’d meet with an investment property.
If you’ve only researched and heard real estate success stories only, you may have a much bigger learning curve. You can be successful. There’s much more to being a landlord than most people realize. You should use your ability to handle conflict, and stay focused on your property as a business.
Know the Property and Type of Tenants You’ll Attract
If you have an investment property that requires a lot of work, make sure you carefully consider the money and time necessary to prepare it for tenants. You need to do property inspections in a timely, you may need to invest in repair or maintenance before your first earning. Ignoring repairs may cost double later. Therefore it’s better to don’t underestimate prices and finish early and under budget, it’s all a bonus for you.
What does a Property Manager offer?
There are plenty of property managers not worth their fees but not all property managers the same. Some of the property managers do more than they asked to do for your property. You should be sure to exercise caution, interviewing multiple managers, and check reviews and reference before hiring finally.
Some property managers allow owners to totally involved with the property management and some only involve them for taking approvals for work to be done.
Tenant Placement and Management
The manager will market and show the property to tenants. They’ll also need to do background, credit and reference checks before selecting a tenant.
However all this depends on the property manager and contract, or it may be based on some portion of the monthly rent. Most of the property managers charge a full month’s rent to place a tenant. Moreover, it’s the property managers responsibility to respond to tenant complaints and repair requests. They have to manage tenant’s move-in and move-out, deal with key and lock changes. Finding potential tenants and managing them is the most important responsibility property manager do, even though it comes at a price.
Hiring of Contractors
If you are managing your property on your own, you need to do maintenance and repair work yourself. This needs to arrange contacts of contractors yourself on time to handle routine maintenance and emergency repairs. Whereas small property management team generally have a list of contractors they trust to do quality work on the properties they manage. Most of the owners like to be involved in the maintenance or turn-overs of their units and decide to complete the other remaining required tasks and emergency calls together.
Management of Finances
Property managers get the bill and pay for all repairs. At the end of the month, the property manager provides you with an income and expense statement. At that time, you may receive a disbursement of funds or you may have to send the management company money. Till then all the finance are managed by the property management company, London.
Legal Issues Addressed
One of the most important things an experienced property management team does for an owner is addressing legal issues regarding the tenants and the property. He will guide you and help you handle all the legal issues regarding property and tenants.
Is Hiring a Property Manager Worth the Money?
Hiring a property manager or not depends on your goals and your property needs. For some investors, it isn’t worth the money they may be owners or full-time landlords. Other owners, who skip management, may found property management an easy task.
Some people have no other chance therefore they find it worth it to value in hiring a property management team and have very little involvement with the rental unit.