Deciding to hire a rental property management company can be a valuable tool in your real estate investment business. A property management group can alleviate some of the daily headaches that arise and free up your time to focus on growing your business. These five markers can indicate that it’s time for you to stop managing your own properties and find some professionals to help you take your business to the next level.
1. You’re Short on Time or Tools
Managing rental properties can require a good deal of time and specialized skills. So when you feel like you’re limited on these things, hiring a property management group can alleviate some of the burden and risk. Phone calls can come from tenants any time of the day or night, and the requests and demands can exceed the property owner’s free time and areas of expertise. A property management group has the personnel and professional contacts to resolve tenants’ needs quickly and efficiently. When you use a management company, you free up valuable time that you can use to continue to grow your business, and you gain expert advice and networking to handle the needs of your properties.
A professional property management group can also help you with areas that may need special expertise. If your properties rent to Section 8 tenants or other unique programs, then a management group can help you stay abreast of the requirements and standards to comply with these organizations. Management companies can also ensure that you follow anti-discrimination regulations and appropriate screening measures for a new tenant. Professional property managers also have a finger on the pulse of your local real estate market, and they may even be able to secure higher rent for you by keeping up with local trends.
2. Your Real Estate Investments Are Growing
As your investment portfolio grows, you may find that the daily management of your properties requires more time. If you still have a day job or other responsibilities in addition to the rental properties, then this can take up more of your time than you’d like. Managing two properties may not require much of your time, but coordinating repairs at 20 different properties can eat into your daily schedule. Hiring a professional property management group can free up your valuable time, and it can allow you the freedom to focus on other investments or interests in your life.
3. It’s Challenging to Stay Ahead of Bills and Necessities
Staying float with the daily operations of a rental property can be demanding. When a tenant moves out or stops paying their rent, then you are responsible for preparing the property or moving forward towards eviction. These sticky situations can feel overwhelming and potentially open you up to possible litigation if not resolved correctly. A property management company can guide you in the right steps to take, and in many cases, they will coordinate move-out repairs or start eviction proceedings. Having a professional’s help can alleviate much of the financial and legal responsibility. Commercial leases or affordable housing programs can also be complex to work with, so a management group can handle the details to keep your properties rented without a stuggle.
4. Routine Maintenance and Management Has Become Burdensome
Routine maintenance issues and coordinating with vendors or repairmen can wear you out. If you have a commercial property or multifamily rental, then you may be responsible for paying utilities, landscaping services, trash removal, or homeowner’s association fees. Properties also require intermittent and expensive capital expenditures, such as repaving a parking lot or a new roof. Obtaining bids for the work and paying these fees can require a good deal of time and effort. These issues can be even more challenging if you live far away from your investment properties. A property management company can provide peace of mind and handle many of these aspects of property ownership for you.
5. You Want Passive Income
Investing in real estate can become an excellent source of passive income when you have a management company. Instead of getting calls in the night regarding broken appliances or clogged toilets, you can sleep well knowing that your tenants are well cared for and calling someone else. A management company will relieve you of the inconvenience of dealing with tenants and allow you to enjoy getting checks in the mail.
While hiring a property manager allows you to truly create passive income, it’s important to make sure that you factor in the cost of property management. Typically, a company charges eight to 10 percent of the monthly rent for their services. This expense can be a great way to turn your rental into a passive income stream.
Hiring a rental property management group can take you from stressed and fending off calls from tenants at any hour of the day to relaxed and rested. Their services are ideal for long-distance landlords or those who feel overwhelmed. A property manager can relieve the challenge of coordinating with vendors and help you to create a truly passive stream of income.