If you own or are looking to own an investment property, you know that this type of investment can be financially lucrative, if done right. Managing an investment property takes a lot of time and effort with tasks that include, finding tenants, collecting rents, and maintenance. Some owners want to and try to manage their properties on their own. This might make sense if you live close by, are handy, and have extra time on your hands. However, for most investors that is not the case. Here are the top six reasons why you should hire a property manager:
Finding the Best Tenants
Property managers will find you the best tenants. They will conduct in-depth tenant screening. This includes conducting credit and background checks, verifying employment, and collecting previous landlord references. You want to ensure you find the best tenants, because good tenants will make a world of difference and bad tenants will cause many headaches.
Property managers will handle all maintenance issues that may arise at the property. Most maintenance issues that will come up are small but can cause headaches if you are not familiar with how to solve them. Property managers have a team of trusted professionals they work with, so any issues at the property can be resolved quickly and properly. They are also able to handle any major issues that arise as well. Having relationships with trusted professionals allows property managers to get quotes and bids on big jobs quickly as they know who to turn to to get the job done.
It is important to do routine inspections of your property to ensure tenants are keeping it clean and there is nothing that needs to be addressed. Even if tenants are keeping the property in good condition, they might not notice something that needs to be addressed. Property managers know what to look out for, so by doing routine inspections, they are able to stay ahead of any issues that may come up in the future.
Buffer Between Tenants and Owners
Property managers allow owners to keep a professional distance between themselves and their tenants. Owning an investment property is a business and property managers allow you to treat it as such. Getting too personal with your tenants can cause you to become lenient on certain issues and can cause issues between you and your tenants. Property managers ensure things get handled properly.
Property Managers Know the Law
Property managers know the law when it comes to dealing with tenants. They will help you avoid discrimination when it comes to screening and selecting tenants. In the rare case there is an eviction, many property managers have relationships with reputable attorneys who can help you handle the process appropriately to save you time and money.
They Will Make You More Money
Many investors are hesitant to hire property managers due to the cost involved. Yes there is a cost to hiring a property manager, usually a percentage of the property’s rent. However, a property manager will actually allow you to make more money over time. Finding the best tenants and setting the proper rental price allows the property to get the best return on investment. They help you maximize your income and minimize vacancy rates. By making sure your property stays in the best condition, property managers allow the property to increase in value as well.
Hiring a property will give you peace of mind. All of these factors combined will give you peace of mind knowing that your investment property is being managed properly and will yield you the highest return possible. It is important to have a good relationship with your property manager so you are in the loop on everything that's happening at the property, and more importantly, so you feel comfortable with how your investment is being managed.