If you’re at the beginning of your real estate investment journey, it can be tempting to handle the management of your properties yourself and save the cost of hiring an outside company to do it. However, managing your properties and juggling all the logistics can be time-consuming and stressful in the long run, so you might find that you need a property manager. Approximately 54% of landlords in the United States choose to work with a property manager. This is indicative of how significant property management services are to property owners. If you’re wondering whether you need to hire someone else to handle all the details involved in managing your properties, here are signs that point toward yes as an answer.
What Does a Property Management Company Do?
A property management company is responsible for your rental property’s day-to-day operations, including collecting rent, paying bills, maintaining the property, and dealing with tenants. While this may sound like work that you can handle, it can be quite helpful to have someone else handle these tasks for you, and focus on more important things, like growing your business.
Factors to Consider Before Hiring a Property Manager
Property managers can be a great asset for landlords, but they also come at a cost. Before answering the question, “Do I need a property manager?” Consider the following factors:
The Size of Your Rental Portfolio
The number of rental properties you own is one factor to consider when deciding whether or not you need a property manager. If you only have one or two units, you may be able to manage them yourself. But if you own several properties, or if they’re located in different areas, it may be worth your while to hire someone to help you out. A larger portfolio typically requires an outside firm to handle things like collecting rent and handling maintenance requests.
The Location of Your Properties
Whenever you ask yourself, “Do I Need a Property Manager?” One of the most important factors to consider is the location of your properties. If your properties are all in the same city, it may be easier for you to manage them yourself. However, if they are spread out across different cities or states, keeping track of everything may be difficult, and you may benefit from hiring a property management company.
Level of Experience
If you’re a first-time landlord or do not have enough experience, you might need a property manager. A good property manager will have the experience and knowledge to help you navigate the ins and outs of being a landlord. They can also help you find and screen tenants, handle maintenance and repair issues, and deal with difficult situations. If you’re an experienced landlord, you might be able to manage your properties independently.
Time Availability
A property manager can help if you don’t have the time to manage your rental property. Being a landlord takes a lot of time and energy, from finding and screening tenants to dealing with repairs and maintenance issues. If you’re not prepared to handle these responsibilities, it’s best to hire someone who is prepared. You can spend your time making money from your other jobs.
Can You Afford the Services?
There are many benefits to having a property manager, but their services come at a cost. Can you afford to pay for their services? The average property management fee is 8-12% of the monthly rent. If your rental property brings in $1,500 per month, you can expect to pay about $150 per month for a property manager. The fee depends on the size and location of your property, as well as the services that you require. It is vital to ask potential managers what they offer, such as advertisement and marketing strategies or rent collection services. Make sure that they have had experience with properties similar to yours, and don’t sign any contracts before you read them.
Final Thoughts
Owning an investment property can be a lot of work. There are many things to consider, from finding the right tenants to maintaining the property. If you’re unsure if you can handle everything alone, it might be time to consider hiring a property manager.
We offer comprehensive property management services at Roy & Company Real Estate & Investment Services. We’ll take care of everything for you, from finding tenants to maintaining the property. Contact us today to find out more about our services.
