Are you a landlord looking to hire a property manager to handle the day-to-day tasks of managing your rental property? Goodman Properties is here to help. With over 20 years of experience in managing rental properties, we understand the importance of finding the right property manager who will ensure a worry-free rental experience for both landlords and tenants. This blog post will explain why, when, and how to hire a property manager for your rental.
What Does a Property Manager Do?
‘Should I hire a property manager?’ Many landlords contemplate on this at some point, and for a good reason. As your business grows and you add additional properties to your portfolio, or you move out of town or state, it becomes increasingly difficult to self-manage. Even if you own a single rental property, the legal and financial aspects of self-managing your rental are sufficiently complex to cause headaches.
Whether you are contemplating the idea of hiring a property manager, or you are already in search of a property management company for your rental investment, you’ve landed well. In this guide, we’ll walk you through why you may need a professional to manage your rental, when to ask for help, and how to hire a property manager.
But let’s start with some definitions. What exactly is a property manager? A property manager is an individual or an organization hired by a landlord to handle the day-to-day tasks associated with renting out a residential or commercial space. These responsibilities typically include collecting rent payments, managing maintenance requests from tenants, coordinating repairs, handling tenant disputes, finding new tenants for vacated units, keeping detailed records and filing taxes related to rental income.
Property managers should be knowledgeable about real estate law and local laws related to renting out residential and commercial spaces. Additionally, they should also have experience negotiating leases and contracts as well as be familiar with basic accounting principles that can help maximize profits from rentals.
When hiring a property manager, it is important to consider both the experience they bring to the job as well as their rates. It is advisable to read reviews from past clients to get an idea of how the individual or organization has performed over time. Also, make sure that you get multiple quotes so that you can compare the prices and services offered between different companies.
Aside from cost considerations, pay attention to customer service policies. Many reputable companies provide customer service 24/7 which could come in handy during emergencies or if problems arise between tenants. Additionally, look for organizations that offer transparency and timely communication throughout the process. This will ensure that you’re kept up-to-date regarding all of the goings-on regarding your rental property.
When considering whether or not to hire a property manager, don’t forget to factor in the potential tax benefits that come with using one. Property managers often have access to tax credits, deductions and other types of assistance that could reduce the amount of money you would owe each year.
Finally, make sure to research any potential candidates thoroughly before signing any contracts.
When Should You Hire a Property Manager?
There are many situations in which you’re better off by hiring a professional property manager, and we’ve listed them in detail below. Generally, you want to hire a property manager when you do not have the time, know-how, ability, or interest in managing your rental. Here are some practical examples:
You own property out of state – When you own a rental property that is located out of the state or town you are based in, you obviously can’t maintain boots on the ground, and won’t be there when the tenant faces a problem and needs your help. Yet property management companies maintain entire local teams ready to act as soon as there is a need. Hiring a property manager will save you from dealing with countless issues that you won’t be able to resolve from afar, like maintenance, renovations, property inspections for move-in or move-out, and many other activities that require your presence on site.
You have limited time – Imagine your already busy schedule. You probably have a full-time day job or even more, or you are a full-time investor looking to grow your real estate portfolio. Managing your property is not an 1-hour-a-month job! It implies constant work on accounting, maintenance, and tenant communication. Add in more properties, and you’re soon looking at a full-time job. Before deciding whether or not you go for a professional solution, you’ll need to analyse how much free time you have, and whether you want to use it to manage your property. If you don’t have a lot of free time, then hiring a property manager to deal with the day-to-day management of your rental property will save you from the trouble of not responding in time to your tenant because you were caught up in other activities.
You are an investor who owns several rental properties – If we have still not emphasized it enough, here you go: managing multiple properties can turn into a full-time job very fast. Add in the lack of business networking with vendors to take care of your portfolio’s maintenance and turnovers, and you’re set for the wrong path. Or property management companies have processes in place and expert teams that are focused precisely on maximizing your rental income.
You are not interested in hands-on management – At times coordinating maintenance can sometimes spiral out of control if you don’t take the hands-on approach, and managing your rental property can feel like a burden. If you’re not into receiving emails and phone calls from your tenant requesting maintenance, if you think that collecting rent is hard, and you do not have a large network of vendors you can tap into when maintenance or repairs arise, then you’re better off with a property management company taking care of your rental, because they will lay down an entire apparatus of procedures, and put at your disposal an entire team of experts to take care of what you would otherwise take care of alone.
Having a property manager gives you peace of mind and ensures that your rental is being taken care of at all times. Also, these professionals are highly trained and qualified in their field, so they’ll know exactly what to do if problems arise or tricky conversations come up with tenants. With all these benefits, it’s no wonder why so many owners decide to bring a property manager on board; so why not consider making this decision yourself?
How to Find the Right Property Manager
So you have decided you need a property manager. There’s no simple recipe on how to hire a property manager, but a mixture of documentation, the right questions at the right time, and clear expectations on both sides should set you up for success.
Imagine dealing with a property manager who will constantly dodge your calls all while they ignore the needs of your tenants because you thought it was just as easy as ABC and didn’t care to check their references or qualifications. You don’t want that. So how do you properly select your property manager?
In short, you want a property management company that:
Has a track record of success.Is transparent and honest about their processes, behaviour, and charges.Will represent your interests.Is fast in solving issues. Communicates clearly and at key points during the tenancy.
The Benefits of Hiring a Property Manager
The Pros of Hiring a Property Management Company
Many investors choose property management companies to manage their assets because of advantages such as:
Expertise – Managers have a degree of expertise and experience in managing rentals that cannot be equalled by someone outside of the industry. This allows them to know the in and outs of pricing, how best to advertise properties, do tenant screening and much more. Property managers also have a vast knowledge of Fair Housing Laws and many other aspects that would give you a headache only when thinking about them.Free Time – Because property managers can do virtually anything in your name, they will free up your time so that you can spend it on whatever you wish, from family to new business opportunities.Maintenance Outsourcing – Maintenance issues can be exhausting especially when a tenant calls in unexpectedly. Property managers will not only respond to these maintenance issues quickly, – some have 24/7 call centers! – but they always have multiple vendors lined up and ready to tackle the job, which will save you the time and hassle of finding the best vendors.Turnover Reduction – Property managers have the know-how to increase the tenancy duration, and therefore maximize your income. Many managers have special welcome procedures for new tenants, and maintain good communication with existing ones, in order to make sure that they have a good experience in your rental, and that they want to renew the lease. Boots on The Ground – Managing a rental portfolio is complex to start with, and doing it while being outside of the city or state in which it is located is nearly impossible. Many investors that do not live in the same location with the rental, or have a large portfolio hire property managers to have the ‘boots on the ground’ for their rentals. Rental Income Maximization – Property managers are experts in optimizing your rental revenue, from marketing your rental for the highest possible price to increasing your tenancy rate and obtaining discounts for maintenance work because of their business relations with vendors.