A property management company can be your biggest asset with your investment properties. They are designed to make the critical decisions on your behalf. There are several things to consider when determining if you need a Property Management company.
Do you need a Property Management Company?
What is the location of your rental property?
Will you be able to go to the property regularly?
If you have to travel to do required maintenance on your investment properties, this creates an added expense and takes time. The further the distance it is from you to the rental, the easier it is to not check on the property as much as you should. Your investment property should be inspected monthly. There are also emergency situations that occur and require someone take care of it immediately. Is it feasible for you to be the one to handle it?
How are you at coping with stress?
We like to think that we are always level headed, but it takes a special person to deal with all of the intricacies of property management. There is much more to it than collecting the rent at the first of the month. Consider these scenarios and think of how you would react to them.
- Domestic disputes
- Arguments with neighbors or tenants
- Illegal business out of the property
- Late night, loud parties
- Having a pet on the property without permission
- HOA violations
- Trash on the property
- Refusal to pay rent
Are you presently overwhelmed with other investment properties?
Even experienced investors can quickly become inundated with managing rentals. There is always something that requires attention, and can take over and get out of hand. A property manager would be able to take care of situations giving you peace of mind.
How many rental properties do you own?
The more properties you acquire, the less time you will have to spend on any specific property. That is where a property manager would be a huge asset. It will alleviate your need to give attention and create opportunity to increase your portfolio.
Are you experienced in maintenance and repairs?
Do you know who to call if you are unable to repair it yourself? Finding reliable workers you can depend on takes time. Maintenance and repairs are a significant concern. You need to have confidence in knowing these are done in a timely manner as well as quality of the repair. A property management company will take care of this for you.
How soon can you get the property rented?
Advertising, showing the property, taking calls and applications take a considerable amount of time. A property management company will take this on for you and get the property rented in less time than if you were doing it all yourself.
Are you ready to be available Day and Night?
You are responsible for any emergency that occurs no matter time of day or night. Emergencies don’t happen every day, but they do occur. A property management company will field the call at midnight when a sprinkler valve bursts.
How would you handle confrontation with a tenant that pays rent late or need to be evicted?
Situations will occur where the tenant is late with the rent. Not wanting to be the bad guy may leave the door open to allowing exceptions. This will only give the tenant the opportunity to take advantage and give excuses regularly. Dealing with late payments needs to be handled immediately. Do you know how to go about evicting a tenant? This is a sad reality Landlords face. A property manager is equipped to handle these uncomfortable situations.
Do you know and understand the laws governing rentals?
Protecting yourself and your property is essential. You must be knowledgeable with the laws and rental agreements in terms of leasing. Lease agreements are the only binding agreement between yourself and the tenant. It would be the property management company’s responsibility to assure these documents are filed out correctly.
Do you have the time to manage your property?
Does it make financial sense for you to manage the property yourself, or hire someone to do it for you? It is something you need to consider when taking on investment properties. They require a huge amount of time and effort. You need to decide if the cost is worth it for your time.