Many investors underrate the value they add, but a good property manager can play a pivotal role in the success of your investment.
Most of us have barely enough hours in the day to manage our own households, with work, kids, groceries, home maintenance and other chores to attend to. But once you purchase an investment property, you’re responsible in many ways for managing your tenants as well.
If you would rather not deal with the day to day responsibility of renting out a residential investment property, you may want to consider using a property manager.
Finding the right one is crucial since their responsibilities will be wide ranging – from liaising with tenants to keeping your property safe and secure.
When should you consider hiring a property manager?
Of course we think property managers are an essential partner for any successful property investment, but here’s a look at particular scenarios where they are super important.
You don’t live near your investment property. Having someone close by your investment property with local connections, knowledge and the ability to attend your property quickly, will offer you peace of mind.
You’re not interested in hands-on management. You may not want to spend your days collecting rent, arranging repairs, conducting property inspections, keeping trust accounting accounts and records, filing bonds, locating tenants, adjudicating disputes, managing tenancy breaches, reviewing legislation and lease paperwork, renewing rent and leases to name a few investment property related activities.
You don’t want a relationship (with your tenant). With your tenant. Many people find it easier to use a third party to manage day to day tenancy issues, as many are sensitive and often can lead to difficult conversations such as bond inspections. Using a property manager, you don’t need to have a relationship with the tenant & be placed in difficult situations.
Your time is limited. You may not have the time to invest in managing your own investment property.
You can afford the cost. After weighing up time versus cost. You decide you wish to use a property manager. Ensure you research what service you will actually get and what you are paying for them. Don’t forget the fee’s are tax deductible. We buy houses in Chaska.
You have multiple properties or rental units. The more rental properties you own and the more units they contain, the more you’re likely to benefit from a management company to manage all the tasks and people involved in the process for you.
How much service do you want?
First, you will need to consider your expectations for your property manager’s roles and responsibilities. Depending on how much time and money you want to commit, there are two options: a leasing only or a leasing and maintenance agreement.
As with all investing issues, the next step is to do your research. Find out the rental amounts for properties in the area where your investment is located, and familiarize yourself with relevant tenant-landlord laws. Note that these differ from state to state.