Real estate investors often debate the question: “Why hire a property manager?”. The decision is a hard one to make, especially for those who subscribe to the “do-it-yourself” mentality. Many don’t want the extra expense when they can do the work themselves. However, the benefits of having a property manager for your investment far outweigh any drawbacks.
Today we are breaking down five main benefits of hiring a property management company:
Any experienced real estate investor knows that there is a litany of stressors that come with ownership. Finding the right tenants, keeping them, navigating legal matters, collecting rent, maintaining the property… the list seems never-ending, especially if you have more than one rental property. By delegating many of these responsibilities to a professional property manager, the worry and stress becomes a team effort rather than having it all on your shoulders.
Because of the numerous tasks that are required to properly manage a property, not only does a professional property management company help alleviate stress, they give you back your time. Even if managing your property is your full-time job, imagine what you could do without the time drain of daily tasks easily handled by a property manager. Instead of chasing down rent, for example, you can spend your time looking for that next investment, growing your portfolio, and focusing on the big picture.
Hire A Property Manager to Protect the Value of Your Property
Rental properties require routine maintenance. From routine tasks like lawn care to major maintenance emergencies like a busted pipe, owners must take care of it all. By hiring a property manager, however, the burden of responding to tenant requests, fixing a problem, and/or scheduling and hiring outside help is taken off the owner’s plate.
When looking to make upgrades or renovations or when fixing a major maintenance issue, property managers also have the benefit of having an established list of vendors and contractors. Professional property management companies will have vetted reliable and trustworthy vendors so you as an owner are not experiencing the headache of hiring someone without knowing if they will do a good job.
Hire A Property Manager to Manage Tenants
Turning a unit can be expensive and time consuming. From market research to advertising a property, turning a rental can cost upwards of $2500. Why not invest this money in a professional company to do the work for you?
Not only is it expensive to find the right tenants, it takes an investment of time to keep them happy. You want to keep your rental leased for as long as possible, and happy tenants are more likely to stay. Being responsive to their needs and requests, running regular maintenance on the property, and doing what you can to make it feel like home can all take up your time. Furthermore, tenants oftentimes like the reliability and impartiality of communicating with an experienced property management company rather than a single landlord directly.
Many do-it-yourself real estate investors rely on lease templates found on the internet. While these can be fine basic contracts, having a professional property manager looking out for your interests adds some relief. Property management companies know the ins and outs of lease agreements. They will be sure to include anything important that could be missed by doing it yourself.
Housing Regulations and Property Laws
Every state, (often cities and counties), has their own unique property laws as they relate to rentals. It is your responsibility as an investment property owner to stay current on the ever changing rules. Having a property manager in your corner can save you from any legal trouble in the future. Remember “I didn’t know” is NOT a valid legal defense.
Some real estate owners argue that the cost of hiring a property manager is just another expense to the bottom line. However, because of their expertise, overall dedication to maximizing the value of every property combined with time savings, any costs can actually lead to financial gains over the long-term.
Long story short, save yourself the time, money and sanity and hire a property manager. At Auben, we believe that two pillars of property management are communication and transparency.
If you are currently making the decision to hire a property manager we are here to help! Click the link below to be connected to our analyst for your FREE Portfolio Analysis today!