Why Hire a Property Manager
Good morning to you @Steve Rozenberg
That is a great question. From my own personal experience I hired my PMs because I really didn't want to deal with the amount of work it takes to manage a property.
I am still of course much involved in all the decisions with the exception of emergencies that need immediate attention but they always notify me. I say yea-nay on tenants and set the rental $ but still look to them for their advice.
After all, they are managing several other properties and have a database full of data that gives them better information. I still use sites like rentometer.com but ideally, the PMs information collected over time is much better. I can all but get into their system myself so my way around that is to just ask the PM and we discuss what I want to have happen, within the market. They are not like other PMs that I hear want to manage the property as though they own it themselves.
And then to have multiple properties just extends into the time I would rather use doing other things. For me it was also the distance, I own property in MD and live in FL. When I was moving away I needed someone to take the day-2-day and manage it. There are also those things like eviction or dealing with an errant tenant.
I've been fortunate and blessed to have good tenants. One was a little far reaching when she replaced the carpet without asking or getting approval and also painted all the walls-color. When her lease was up she didn't do the proper notification and then wanted all of the security back. We had documentation on the carpet, paint and the damages that the security barely covered. So, where the PM comes in was addressing the complaint the tenant filed with the state. Luckily I had pictures, dated, that showed the property condition prior to her move in and the lease that specifically stated the terms. With my documentation and the PMs documentation we addressed these concerns with the state agency. They didn't side with the tenant for obvious documented reasons.
So, "why" hire a PM, for those of us that cannot manage long distance or even want to, or deal with the hassle or horror and even having a great tenant (there is still paper work, etc).
Have a great weekend!
Thanks @Daria B. I agree with all that, I always feel that collecting the rent is really the simple part of the equation. You get the right tenant, put them on an auto bill pay and that is done.
The real thing a PM does is protect your asset and make sure the owner does not get sued and complies with all the local and federal laws. They are there to protect the owner (sometime from themselves) and the tenant along with their rights. Enforcing the lease and abiding by all laws both parties are obligated to comply with.
The best way I can think of it is since I came from the Airline industry as a pilot, people don't pay for the easy no brainer flight from A-B, they pay the pilot alot of money for the scnario when your flying across the Atlantic ocean in a snow storm and you lose an engine and have to decided where to land and how to put the engine fire out and deal with the emergency, thats when people would pay any amount to the pilot.
Same for a PM, its when they save them from a fair housing or discrimination lawsuit or housing violation and risk losing their lifesavings.
Just my opnion...
Oh my gosh yes @Steve Rozenberg that is paramount to making sure being on the right track to success. And I've been there "They are there to protect the owner (sometime from themselves) and the tenant along with their rights. Enforcing the lease and abiding by all laws both parties are obligated to comply with.". All because I just didn't know and they had the rules and said 'no we/you can't do that and here is why'. It pushes me to read more and discover, which I think makes me a better owner. I'm always learning and hope I always do!
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