So you took the plunge and invested in a rental property, now what do you? Managing a rental for the first time can feel overwhelming, which is why it can save you time, money and stress to hire a property manager to do it for you.
Here are 8 reasons to hire a property manager:
All landlords will experience tenant turnover; it’s the nature of rentals. Hiring a property manager will prevent you from having to screen applications for new tenants. Imagine the amount of time and stress you will save by not worrying about filling vacancies.
Some tenants can be quite needy. Your time is valuable and it can be frustrating to keep up with endless requests, complaints or concerns from tenants. By hiring a property manager you put in a buffer between you and your tenants. This will prevent you from having to deal with potentially trivial issues.
Managing repair requests
It’s easy enough to receive a repair request, but managing sub contractors and timelines for several units all at once can be a huge headache. Property managers have experience tracking repair requests, from the time the request is submitted to the time it’s completed. A property manager should also keep detailed records which will help to expedite your taxes and protect you from any tenant disputes.
Keeping you in compliance
From equal housing to county specific laws, staying in compliance can be a full time job. Having someone manage your property will help to keep you compliant with national and local housing laws. This will help you avoid lawsuits and in the long term save you money.
Maximizing your profits
Most property managers charge a percentage, usually 6-10%, of collected rent. This will help you to maintain cash flow and ensure you are running a profitable company as opposed to paying a salary for an individual to care for the property.
Rental market knowledge
You could browse Craigslist and other sites to see what similar rentals are listed for, or you could hire a property manager who will be able to conduct a market study to set the right rent rate. Their market knowledge will help you to maximize your profits.
Emergency call management
Unless you love being woken up in the middle of the night by a tenant who has a water leak, hiring a property manager is a great idea. They will be able to field the emergency calls and take care of after hours requests while you have a restful night’s sleep.
Fees paid to a property manager are often considered tax deductible further improving your bottom line. Contact your accountant to see if this is true for you.
A property manager can help keep you sane as you navigate the waters of real estate investment properties. Reach out today to get a no obligation property management consultation.