Owning rental properties can be a great way to earn money while investing in your family’s financial future. However, if you own multiple-income properties, you may quickly become overwhelmed if you attempt to manage these properties on your own, and you may find yourself wondering if it is time to hire a property management company to assist you. While hiring a property management company may seem like an unnecessary expense to some landlords, you may be surprised by how much of an asset a property management company can be, as they can help you to get the most out of your rental properties. If you currently manage your income properties yourself and are unsure whether hiring a property manager is right for you, continue reading for a look at a few of the signs that you would benefit from working with a property management company.
Your Time is Limited
Unless you have made being a landlord your full-time job, it is likely that your time is limited. If you work a regular job while also trying to maintain your rental properties, you may quickly find yourself spread thin trying to take care of all of your responsibilities, and you may find that you no longer have time to do the things you love like spending time with friends and family. This problem will only worsen as you begin to take on more properties. In fact, many landlords find that the most properties they can manage on their own is two or three if they also work full-time. If you feel like you are making major sacrifices in your personal and professional life because you are spending so much time managing your rental properties, this is a clear sign that you should consider hiring a property manager. They will be able to remove a great burden from your shoulders by handling much of the day-to-day property management, allowing you to get back to doing the things that you love.
You’re Not Passionate About Being a Landlord
Let’s face it, not many people are passionate about being a landlord. Property management can be extremely stressful and time-consuming, and if you see rental property ownership merely as an investment, then you may not have a desire to handle the day-to-day struggles that come with being a landlord. Fortunately, you do not have to be a hands-on landlord to be a successful real estate investor. If you are tired of the 3 a.m. wake-up calls from disgruntled tenants, and you want to take a more hands-off approach to rental property ownership, then it may be time to consider hiring a property management company. An experienced property manager will do the hard work for you, allowing you to step back from the downsides that can come with owning income properties.
You Have Multiple Properties
As we previously mentioned, there is a limited number of properties you will be able to manage on your own before you become overwhelmed. After a certain point, it will become nearly impossible for you to keep track of all of your properties on your own, as taking care of property maintenance, filling vacancies, handling tenant complaints, and collecting rent can quickly become overwhelming if you have more than a couple of properties. However, if your goal is to continue to grow your real estate portfolio, you will likely reach a threshold fairly quickly where you find yourself unable to manage your properties on your own. This is when it is critical that you bring in an experienced property management company. By hiring a property manager, you will have a peace-of-mind knowing that your properties and tenants are in good hands, even as you continue to expand your real estate portfolio.
Your Property is Part of an Affordable Housing Program
It is particularly important that you hire a property management company if you own, or plan on purchasing, a property that is part of an affordable housing program, as this can make property management even more complicated. With many of these programs, the landlord receives financial assistance, often in the form of grants, low-interest loans, or tax credits, in return for renting at least a part of their property to tenants earning below a certain income level. However, when you are part of one of these programs, you must abide by a complex set of rules and regulations that can leave even a seasoned landlord vulnerable to making a critical mistake. Fortunately, a property management company will have experience handling affordable housing programs, and they will be able to help ensure that you adhere to proper procedures.
You’re Tired of Dealing With Tenants
Over time, you may find yourself growing exceedingly tired of dealing with tenants. This is particularly true if you own multiple properties, as you may find yourself tired of constantly fielding phone calls from tenants, handling maintenance tasks, and handling emergency repairs. Dealing with tenants can be particularly troubling if you seem to constantly have problem tenants who are irresponsible and/or who do not pay their rent on time. This is where hiring a property manager can be particularly useful.
Not only will your property manager handle tenant complaints for you, and oversee property maintenance and repairs, but they can also help you handle problem tenants. A skilled property manager will make sure that rent is collected on time, and, if it comes to it, they can also oversee the process of evicting bad tenants while following proper eviction protocols. Even better, property managers are great at screening tenants, which can help ensure that you do not take on any problem tenants in the first place.
You Have High Vacancies
As a property owner, if you do not have tenants, you don’t make money. High vacancies and/or turnover rates can then reduce your profits by leaving you with empty units. If this is a problem that you have been struggling with lately, then you’d likely benefit from hiring a professional property manager. Property management companies have the marketing experience to help you fill vacancies at your properties quickly. They also know what it takes to keep tenants happy, which can go a long way in helping to reduce turnover rates.
As you can see, there are many situations in which property owners stand to benefit by hiring a property management company. In fact, unless you plan on making property management your full-time job, and you are passionate about being a landlord, most property owners would benefit from working with a property management company from day one.
Feel free to contact us to learn more about how you will know if you should consider hiring a property manager for your rental properties