{"id":76581,"date":"2019-09-15T05:00:25","date_gmt":"2019-09-15T11:00:25","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=76581"},"modified":"2024-01-27T10:01:24","modified_gmt":"2024-01-27T17:01:24","slug":"2016-01-25-property-management-worth-it","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2016-01-25-property-management-worth-it","title":{"rendered":"Premium Property Management Really IS Worth It: Here’s What It Can Do For You"},"content":{"rendered":"

Property management is a tough business with a bad rap (much of it earned, by the way)! For investors who <\/span>have <\/span><\/i>taken on landlord responsibilities<\/a>, you know just how demanding it can be. Managing an investment property is both challenging and time consuming and requires a bit of personality dexterity. <\/span><\/p>\n

Most real estate investors, however, never deal with the nitty gritty details of property management, even if they understand what goes into it. That is because most real estate investors participate in the this massive investment market in a passive way. They have no experience with property management, so they have no idea what makes it tick.<\/span><\/p>\n

Unfortunately, that <\/span>fact<\/span>\u2014<\/span><\/i>the reality that most mis<\/span>understand the gargantuan task of property management\u2014means that too many investors are willing to overlook quality to save on costs.<\/span><\/p>\n

We understand, really. After all, you\u2019re in this business to <\/span>make <\/span>money, and if you\u2019re spending a <\/span>ton <\/span>on property management, it means fewer dollars in your retirement accounts when rent is due. Right? Ben Leybovich wrote a classic article about the challenges of affording property management<\/a> and received over 100 comments!\u00a0<\/span><\/p>\n

However, when you are in the middle of the real estate game, it is real life. It ain’t practice! You don’t have time to make the mistake of trading your time to save a few dollars, just like you do not have time to step over dollars to grab the dimes. When it comes to the notion that you can save money and build your retirement by doing the management yourself, my only advice is: not<\/em><\/span> so <\/span>fast.<\/span><\/em><\/p>\n

\"property-management-team\"<\/p>\n

Premium Property Management Is Worth It\u2014Really<\/h2>\n

Here\u2019s the thing about property management: You get what you pay for. The difference between good property management and bad property management isn\u2019t always <\/span>immediately <\/span>noticeable to real estate investors. Why? Because good property management isn\u2019t something you <\/span>have <\/span>to notice, and bad property management does everything to hide just how bad it is.<\/span><\/p>\n

Related:<\/strong> 80 Smart Questions to Ask BEFORE Hiring Your Next Property Management Company<\/a><\/em><\/p>\n

Making comparisons based solely on price will come back to haunt you when you end up with chronically late rent payments, a property that\u2019s falling apart, broken lease agreements, poor communication, improperly set expectations, and high tenant turnover. Bad property management can not only hurt your long-term investment success, but it can also damage one of your most valuable assets\u2014your reputation.<\/span><\/p>\n

Your management team is the on-the-ground, public face of your investment business. That\u2019s <\/span>big.<\/span><\/i><\/p>\n

So really, what does a good property management team look like? What benefits do you get for investing in premium service? Almost as important is how do you set good expectations on the front end?<\/span><\/p>\n

What Ideal Property Management Looks Like<\/h2>\n

You\u2019re In-the-Know<\/h3>\n

Solid property management teams make sure they are in constant communication\u2014especially about the big things, the milestone events. While they don\u2019t overload investors with updates, they don\u2019t hesitate to offer reports, documentation, and property status updates. Good property managers are organized and never try to hide things from you; they\u2019re proud of the work they\u2019re doing and have a genuine interest in providing quality services.<\/span><\/p>\n

That does not mean things will always go smoothly. There can and will be hiccups, but simple peace-of-mind communication goes a long way, and the best of the best make this a standard operating procedure.<\/p>\n

Interview questions when hiring a property manager might include:<\/p>\n