Hiring a property manager makes it easier to take care of your rental property management, but if you choose the wrong one, things could go very wrong. It’s up to you if you want to hire a manager for your real estate investment. No one else but you knows what your business needs. Taking care of your rental properties can be a lot of work. There are repairs, showings, screenings, and collecting rent. It might be time to think about hiring someone who can take care of the day-to-day tasks and emergencies that come with owning rental property. Read on to find out the pros and cons of outsourcing property management if you think it’s time to hire a manager.
The Good Things:
Money and time for you:
Do you have a full-time job and want the rental property to be a source of passive income, or do you want to be very involved in managing the property? Managers can take care of everything that comes with running a rental property. You’ll have more time for yourself and won’t have to worry about tenants directly. This will give you peace of mind because you’ll know your property is in good hands.
Expertise in the field:
A property manager has probably been doing this for many years. They know all the ins and outs of the market and how to price properties well. Most of the time, they can shorten the time that a rental is empty. They know how to find good tenants and have dealt with tenant disputes, roommate changes, lease breaks, evictions, and more. These things can be hard for a normal landlord to handle, especially if they have never run a rental property before. Property managers have also learned about fair housing laws and local laws that can affect landlords and tenants. Some of these rules are very specific, and it would be easy to break them if you didn’t read them all.
What’s wrong with it:
No longer in charge:
If you want to be in charge of every aspect of your business as a property owner, hiring a property manager is not the best choice for you. When you hire someone else to run your rental business, you give up a lot of control over how things are done. A property management company will hire its own employees, screen and approve tenants without your help, and may even make small changes to the property as part of maintenance or upgrades.
A property owner who is careful with their money might think that hiring a property manager is an unnecessary cost. When people are trying to decide if they want to hire a property manager, the cost is the biggest thing that stands in their way. Property management is a paid service, and people who think they can do it themselves might be put off by the first dollar signs. The fee for property management could be close to 10% of your rental income, which is a lot. Some companies charge owners of rental properties based on the size of the property, its condition, and its type and location.