If you have managed your property for years without any concerns, why would you ever consider residential property management? After all, you have done all the jobs a property manager would do without having to pay fees. Well, if you are reading this post, then you likely are starting to consider the benefits of property management.
When you look at the property management fees most firms charge, you might feel like are losing money. However, paying for peace of mind or to free up your time might be worth it. Let’s review some of the things to consider when deciding if residential property management is a good investment.
Benefits of residential property management
Think about the following items and how they relate to you. There are often opportunity costs that come with managing your own rental properties that you may not have considered.
Frees up time
This is a given when hiring property management. You no longer have to spend your time speaking with prospective tenants, verifying their financial information, collecting rent, and answering an unending stream of questions. If you have been self-managing for a while, this is probably second nature to you. You likely do not even realize how much time it takes to run your properties.
Here’s a great way to assess the value of residential property management. Start logging all hours you put into managing your units. From simple conversations to depositing checks, keep track of everything. Add it up to see your total weekly time commitment.
Now think about what you could do with all that time!
Stop worrying about maintenance
If you have been doing this long enough, then you know that properties often have unexpected maintenance issues. Even small things like installing a new garbage disposal can be a headache when trying to coordinate around your schedule and the tenant’s. And when the tenant wants their new washing machine now, it can stress you out.
A management company will clear guidelines regarding maintenance so that you and the tenant know who is responsible for what. You can authorize the residential property manager to perform maintenance on issues under a set dollar value. This way, they can keep your property in great shape without bothering you.
No legal concerns
Do you keep your leases up to date? Do you and your tenant agree to set terms regarding the rental? Many landlords do not worry about these issues until they are faced with a legal problem. A worry-free tenant might have a complaint that becomes a massive battle. If you do not know your rights as a landlord, you may grant the tenant more than their fair share or illegally infringe on their liberties.
With a management company who is abreast of all housing laws, you can be sure that you are always on the right side of the law. The property manager will keep the leases up to date and handle all legal battles, including evictions.
Travel and out-of-state ownership
Have you ever worried about your rental property while traveling? What if the tenant has an issue that needs urgent care? If this happens, you will have to bother a friend to work with the tenant until you come back. This added stress might dissuade you from taking an extended trip.
If you want to move or buy a property in another state, how are you going to manage your rentals? While you can have the tenant continue mailing you a check, you will rarely see what is happening at the property.
A property manager will be your eyes and ears. They will check up on the unit and verify that the tenant is taken care of and following the rules. You can start to build a multi-state or international portfolio with the help of a trustworthy residential property manager.
A common goal that many real estate investors have is to acquire enough properties to become self-sufficient. With this rental income, you can quit your job and simply manage your properties…right? Well, it is not always that simple. A large portfolio often means taking care of properties all over a city or large area.
While you may be generating a high income, you will have many tenants to attend to. They will have questions about maintenance and payment. Some will complain about rental rates and damage charges. On top of this, you will still have to market each unit and schedule tours. It quickly becomes an overwhelming experience.
To help you out, you can use a residential property manager to take over as many units as necessary. The benefit of having a large portfolio is that you are often able to get a better rate on management fees.
How to get residential property management?
If you live in a major city, there are probably dozens of management firms fighting for your business. In a less populated area, you should still have a handful of managers to consider. Comparing each of these firms and their proposals will take some time. They often do not clearly outline their fees, making it harder to accurately assess their value.
Make choosing a residential property manager easier by listing your properties on www.theBurbz.com for free. You will never have to pay to find a property a manager. Firms near you will provide their proposals so you can compare their terms. If needed, you can ask questions to learn more about these companies. Once you find a property manager you like, you simply award them the property and begin working with their firm.