4 Reasons Why Hiring a Property Manager is a Good Decision

While real estate investing is a great line of business make copious piles of money, there are a few things to consider before jumping into the fray. This is particularly true if you are considering going the route of being a rental property owner. There are all kinds of reasons rental properties make sense and are a good solid investment.  However, it doesn’t come without a few drawbacks, most of which tend to be financial. 

Many new investors choose to self-manage their own properties, first, to cut expenses and secondly, to better control everything relative to their rental property.  It would be wise, however, to carefully consider the responsibility of self-managing, first, before you buy your rental property and jump in as the full-time property manager.  Here are four reasons you might want to consider hiring an outside property management company:

#1 - On Call 24/7

First of all, if you own rental properties and elect to manage them yourself, which is probably wise unless your first property is a multifamily property, you will quickly discover that your life is no longer your own. You are literally on call 24 hours a day, 7 days a week, to handle problems that may arise from pipes bursting, heating going out, electric issues, noxious fumes, leaky roofs, clogged toilets and window sills and countless other complaints that may erupt at odd hours of the day or night. Your tenants will have your phone number and expect you to always take their calls.

#2 - Rent Collection

Second, you have to play the role of Mr. or Mrs. Mean every month when the rent is due. This is probably the least tasteful task of owning rental properties for many rental property owners and one reason that many resort to the services of a property management agency above all other reasons. You will hear all manner of sob stories in your role as landlord but you need to treat this like a business, even the things about your business you don’t like such as rent collecting and, when necessary, eviction proceedings.

#3 - Maintenance

Third, the constant need for upkeep and repair is often daunting to rental property owners. It’s a sad truth that people do not treat rental properties with the respect that they would treat a home of their own. For this reason, you almost always need to paint and replace carpeting, at the very least, in between tenants. This takes work and time, not to mention the fact that the time that spent painting and replacing the flooring is time that the property is going to be vacant and not bringing in any income.

#4 - Finding, Screening & Keeping Tenants

Finally, there is the constant need to have the property occupied. As the owner of a rental property you will need to find new, good tenants when the old ones leave because every day the property is empty is a day you aren’t making money. You want to have the property filled as quickly as possible and you really want longer term tenants whenever possible. One way, of course, is by making sure that your tenants are treated well, not overcharged, and happy with their homes.

Owning rental properties can be financially rewarding but it is also a lot more work than most people realize. Rental properties require a long-term commitment to keeping the property in good working order and making it a profitable venture for many years to come. If you are considering this business and the above things are a deterrent for you, it might be a good idea to obtain the services of a good property manager.