Is Hiring a Property Manager the Right Move for You?
Maintaining an income-producing investment property takes a lot of time and effort. Have you considered whether it is worth the price of hiring a property manager to keep up with your investment property?
You save a lot of money by keeping up with your property yourself. However, is keeping up with your property demands the best use of your time? Would you rather use that time pursuing your family, hobbies, or career aspirations? Hiring a property manager can save you time and provide space for you to pursue more life opportunities.
Reasons to Hire a Property Manager
Property managers are individuals or teams hired to manage property on your behalf. This property can range from homes, condominiums, short-term vacation rentals, shopping complexes, or any other form of property. According to Zillow, you should consider hiring a property manager or management company if:
- You have multiple properties to rent.
- You feel overwhelmed with property management tasks.
- You live far away from your rental.
- You're not interested in hands-on management.
- Your time is limited or more valuable than the cost of hiring a property manager.
If you are interested in handling a portion of your property management demands, you may be able to outsource the remaining tasks. For example, you may be able to maintain the landscaping for your property but may need to hire-out the task of cleaning out the gutters. Handling more tasks personally will decrease the property management fee.
What is Expected of a Property Manager?
Property management comes with a multitude of responsibilities. Daily tasks include handling security and basic upkeep to maintain the value of the property. These tasks may include:
- Cleaning the gutters.
- Fixing a leaky roof.
- Lawn care.
- Overseeing home improvements.
- Checking-in on plumbing.
While these responsibilities are simple, they are time-consuming. This is especially true if you decide to own multiple homes. It can be costly and time-consuming to travel for basic maintenance issues. For example, owning a lake house or a beach home could mean owning property located hundreds of miles away from your permanent residence. By hiring a local property manager, you will likely save time and money. Their work will help maintain your property value and allow you to be stress-free in owning your second home.
A property manager will likely have more tasks beyond day-to-day maintenance– especially if your additional property is designed to be a rental property. Managing a rental would now include overseeing tenants. Managing tenants comes with multiple various responsibilities including filling vacant units, collecting rent/payment, answering questions, as well as solving maintenance issues.
Tenant management fluctuates depending on how you rent out your property. Tenants can be long-term; such as renters for an apartment or house. On the other hand, these tenants can even be short-term. Short-term renters may use a home or an apartment for a weekend vacation rental. If you decide to rent out your home as a short-term option, property managers would help guests check-in, manage cleaning crews, and respond to customers’ questions. If your residence is rented out consistently, these responsibilities can take up your time. You may find it more cost-effective to hire them out.
How to Find a Property Manager
Once you have decided it is right for you to invest in a property manager, it is time to do your research. First, start by looking up property management companies. Find out if there are any individuals or companies located close to your property. Research a business’ or an individual’s reviews and compare prices. Verify that the company you are considering can handle the needs of your property. Lastly, see if the company will service your property. Many companies will have set requirements for the properties they service.
There are many other factors to take in consideration when seeking out a property manager. Zillow goes on to provide more practical steps to help you find and hire a property manager:
- Ask for referrals from friends, family, or your real estate agent.
- Check reviews online or with a state or local apartment association.
- Make a list of a few companies that may fit your needs.
- Compare the fees of each company.
- Check each company’s licenses and certification.
- Read each company’s property management agreement.
- Inspect properties currently managed by the companies you’re interested in.
- Organize interviews with a few companies to see which one is the best fit.
The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.