Hiring a property management company is your own decision. This decision may not be for all. The following are some of the things to take into account to help you in identifying whether or not you get the services of a property manager.
Your Property’s Location Compare to your Main Residence
The distance your house and your investment has to do with how tough it is to manage your investment property. When your main residence is located in a certain state and your rental property is in another state, it will be more challenging for you to look for tenants, handle tenant complaints and quickly respond to any emergency, handle maintenance problems and make sure rent is collected on a timely manner. Also, the time it will take to reach your property and the cost of getting there will add up.
Think about the Number of Units you Own
An increased number of units would mean increased responsibilities for you. When you get more tenants, you should expect more maintenance problems, vacancies and complaints. Additionally, when your units are spread throughout multiple properties, your commitment and time tend to increase since you will need to deal with the cash flow of every individual property and commute from one property to another to handle problems.
Check your Experience before you Hire a Property Manager
When you wish to invest in real estate; however, do not know the main things about property management, getting the help of a professional property manager like Asurent can be a good move. Learning to manage a property on your own can be pricy. Property investors who just started out should know that failing to hire a good repairman and taking too long to fill vacancies will eat into their possible income. Mistakes like being accused of discrimination as you didn’t understand Fair Housing laws can result in the collapse of your investment.
Can Afford the Hiring
Before hiring a property manager, it is imperative to evaluate your finances. Property managers will charge a certain fee. On average, they will charge between 4 percent and 10 percent of your property’s monthly income. Property managers will charge nearly 10 percent for a single family rental property. Properties with at least ten units may be charged between 4 percent and 7 percent. Additionally, a number of property managers will charge tenant placement fees, a bonus to find a tenant.
Do you Have Time to Manage your Investment Property?
When you work full time as you invest in property and cannot provide the required attention to your property, the investment success could rely upon a great property manager. Don’t forget that time is money and handling your property will take time. When you feel like your daily obligations to manage your property impede on time which could be better spent to make more money at your full time job, it would be better to hire an outside manager.
Do you have the Willingness to Give up Control
A property manager can have the responsibility to collect rent and file taxes for the property. Will you give somebody else this much control? Although they are likely to have the experience and certification, does the manager have the passion for your investment?
Author Bio: Patrick Rogers has been a landlord for more than two decades. He recommends Asurent Property Mgt to those who choose to hire property managers for their investment properties.