Being a landlord involves devoting a lot of time to the job. For some people that is not always an easy thing to do and not spending the necessary time can hurt your market reputation. A lack of response on your part is one thing that can cause you to lose tenants rapidly if you are not giving adequate time to the job. How do you manage such a situation? Hire a property management company and it will be much easier for you to deal with your tenants. The problem is that this is a costly venture and you will have to consider many things while deciding whether you should hire one or not. What we suggest is that you should answer the following set of questions and base your decision on that.
How far is your residential location from your rental property?
If your residential property is very far from your rental properly, it might not be easy for you to manage it. Generally, the greater this distance is, the more difficult it gets. You will not be able to find tenants that easily, and once you do, you will not be able to respond to their complaints that well. And if an emergency arises, it might be too late before you actually reach the unit.
If this is the case with your unit, go ahead and find a suitable property management company. In the long run, you will actually be able to save money, plus you will not lose your tenants because their issues will be dealt with quickly and appropriately.
How many units do you have?
As long as you have a single or even two rental units, you can manage them on your own. In such a situation, hiring a property manager will be too expensive for you. However, as your business grows and you start renting out more properties, you will not be able to cater to all of them that well. Your tenants will increase, and with them will rise the complaints and issues. Moreover, if these multiple properties are separated by great distances, that is even more problematic because it will take time for you to commute, not to mention the fuel costs that are incurred. Obviously, hiring a property manger becomes appropriate in this case so that you can shed off some of your responsibilities onto someone else.
Do you have the necessary skills or a good amount of experience?
Is this the first time you are investing in the real estate industry? As long as you have the skills that are required to manage properties, no problem. But if you lack in this, and have no similar experiences of any sort in the past, you should appoint a property manager. At least, this would ensure that you tend to every issue on time and keep your property well-maintained. More beneficial is the fact that a property management can guide you about laws that need to be complied with. Fail to do this, and a trip to the court should not take you by surprise.
Is there enough time on your schedule to properly manage a property?
As long as you can devote a significant amount of time to your property on a daily basis, you will not have many tenant problems to deal with. However, if you have another job and your rental income is only a part of your total monthly earnings, you probably will not be able to devote the time that is required. In such a case, hire a property management firm, and you will be glad you did.
Is your vacancy rate high?
If your property remains empty most of the time, you are probably not good at marketing. A skilled property manager can easily, promote your property, find tenants, and screen them through rigorous procedures.
Is affordability an issue?
This is the last and the most important question that you must ask yourself. Evaluate your financial position and make sure a property management firm will not restrain your budget. Typically, such a company charges around 4% to 10% of the monthly income you earn from your property. Property management firms for single family housing lie towards the higher end of the range, whereas for multiple housing, lesser costs are incurred.