There is a general misconception that is common among owners of rental property that the handier they are with all the intricate details that concern their property, the more funds they retain in their coffers. Deciding whether to pay someone for a job you think you are capable of doing can raise a lot of concerns, albeit legitimate in some quarters. But just before you begin to get that smug feeling of satisfaction you get when you discover that you may have stumbled upon a multi-million dollar idea or had a eureka moment, it may be wise to take your foot off the gas for a moment and critically analyze the pros and cons of such a measure. Managing a property can be more work than it actually looks like at first glance. No denying, you can actually rake in a few bucks by doing it yourself but it is important to estimate just how much you are going to have to give up for the few extra checks. More often than not, what you give up is not commiserate with what you stand to gain. Every time you go out of your way to perform a task or fix a problem, there is always an aspect of your convenience that must be sacrificed. And this prompts the question; – is it really worth it? Is it really needful to do so much for so little when you can easily take a breather and rest easy from all fussing of property ownership by leaving all that work in the hands of a capable and competent property manager? These questions ask why you should hire a property manager.
It does not really matter whether the property in question is a single family rental or a portfolio of multifamily properties, adding a property manager to your employ is vital if your long-term goal of expanding your network of housing options is to be ever achieved. A property manager does not just free up time on your cluttered schedule, he/she is neither a whip hand nor the one you send to kill the boogeyman. Property management entails much more than doing the dirty job and keeping everyone happy, it has a domino effect on other areas of your business. Instead of getting cranky over a defaulting tenant or racing against time to cash paychecks, you can focus on the more essential details.
Now, the naysayers might want to argue that you may be parting with a substantial amount of your money on a monthly basis, the conventional 10% fee directly chips away at your cash flow and renders the rental less profitable. Another reservation is the knowledge and control you may stand to relinquish to a property manager. But just as it is with making every other business decision, it will be wise to juxtapose the merits and demerits. From the perspective of property management – be it real estate, paying the monthly fee is indeed worth much more than having to handle all the problems that actual property management brings with it on a monthly basis. Whatever losses that may have been incurred in your bottom line will be more than regained in increased time and decreased stress. Almost anyone can pass for a rental property manager but not everyone can necessarily do a good job of it. Some connections, expertise and people skills are indeed pivotal to successfully managing a property. By placing your property in the hands of a good manager, you are given leverage to shift focus to other aspects of your business that can yield greater amounts of revenue. It is like outsourcing a job to a personnel so that you can focus on the bigger fish you have to fry. Below are good reasons you might want to consider hiring a property manager.
- SCOUTING FOR TENANTS:
It is not always easy for landlords to find the ideal tenant for every lease. Often, it is the most difficult job that a landlord is faced with. It is certainly not enough to simply fill the vacancy or assume the position of the one who has to find the best possible tenants. The entire process can become very complicated, so much so that you become frustrated and when you do baulk under the pressure and difficulty, renting to the next interested client may very well be your last resort, which may yet prove a bad decision. This is where a property manager swoops in to save the day. Instead of jetting off a tangent at every request of your property showing, your property manager will effectively handle these unpredictable property calls while you sip cocktails at the beachside. And it gets even better. Their job does not stop at mere exhibitions, they also make it a point of duty to screen prospective tenants so you are sure who you are doing business with. A single tenancy gone wrong could give you a jaundiced view of the property. Your thoughts will constantly hover around eviction and lost revenue instead of cash flow and equity accumulation. Tenancy is a vital cog in the property machinery. It could make or break the reputation of your property in quarters even beyond your scope. This is why you cannot afford to get it wrong. A property manager ensures a good reputation for your business by handling tenancy matters with utmost expertise and diplomacy.
- REPAIR WORKS:
It is a well-known fact that repairs pop up every once in a while for every lease. You can expect at least a few phone calls during the course of your lease. You will still need to find the time to get the work done, however minor the issue. Be it a clogged up sewer or a leaking roof, the longer you make your tenant wait, the more you leave room for grievances down the road. Not only will you have to get someone to do the job, you may also have to get yourself to the property and this time-consuming affair is what a property manager can handle. A good property manager has established relationships with plumbers, electricians, janitors, handymen and the works. They get your property fixed in good time to the delight of your tenants. You will still have to pay for the work, but with your money only and not with your time and convenience.
- RENT COLLECTION:
Finding good tenants who will not default in such matters as the payment of rent is the nucleus of everything about rental property. Delay in rent receipt is a bad sign and a clarion call to redirect focus. A matter as sensitive as sensitive as this requires the right personality which a great many landlords are wont to have. They are either too stern or somewhat too lenient and let a few days slide. A good property manager acts a semi-permeable membrane between you and your tenants. He is like the emissary you send to broker peace. They know your tenants personally and are aware of the just the right manner to go about prompt rent collection without leaving grudges in their wake. They know their paycheck hinges on the payment of the rent and this motivates them to do everything within the confines of the law to ensure the checks come as at when due.
- ADHERENCE TO LOCAL RULES AND REGULATIONS:
Ignorance of local rules and regulations governing lease agreements can cause major problems and open the door to countless litigations. It can be very difficult to keep tabs on all the housing laws as they are constantly being redacted and promulgated, even for a seasoned landlord. This is another reason to hire a qualified property manager. Not only is a good property manager conversant with local laws but they are also attuned to fair housing and many other federal laws as well. Ignorance of the law is no excuse to flout the law and a property manager will ensure you are not found wanting as the repercussions and blowbacks may be overwhelming.
- A BETTER TIME SCHEDULE:
Even a single rental property is a lot of work. There are entire weeks you may feel like having a property manager on your payroll is an unnecessary expense and then out of the blue, you are hit with three problems on your property in a single week! Immediate and decisive action is required when problems do arise. This entails that every other of your activity or commitment be put on hold until the problem is fixed. This could land a damaging blow to your other businesses and culminate in the accumulation of stress. A property manager generally solves this problem, eliminates the downtime and gives you freedom to carry out your other businesses. You do not have to take calls at odd hours, drive all the way downtown to assess a faulty plumbing or a blown out fuse or abandon your business to attend to a random government inspection. Some months, you may question the veracity of having a property manager, and others, you will be more than grateful you have one. Being able to run your rental property without stress is not one of those things you can put a number on.
In order to nurse any business venture to success, there are times when a look at the big picture instead of the bottom line is imperative and this is one of such times. The need for a property manager cannot be overemphasized.
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