If you’ve been wondering if you should hire a property manager or do it yourself, hopefully by the time you’ve finished reading you will have some idea of what works best for your situation.
While many hands-on (DIY) landlords manage their rental properties themselves, some opt to hire a property manager to take care of some or all of the landlord’s duties.
What is a property manager responsible for?
In essence, property managers save you time and lessen the stress and worry associated with being a landlord, including:
- ⬥ marketing the rental
- ⬥ managing tenants
- ⬥ collecting rent
- ⬥ attending to maintenance requests, and
- ⬥ handling legal issues
They are frequently employed by a business that manages your home’s rental in return for a fee that is typically between 7% and 10% of the monthly rent.
Why would I want to use a property manager?
If at least one of the following situations applies to you:
- ⬥ You have several rental properties available
- ⬥ Your to-do list for property management seems endless
- ⬥ You don’t live close to your rental
- ⬥ You aren’t interested in self-management
- ⬥ Your time is limited or worth more than hiring a property manager would cost
If you want to manage your own rental properties, you might be able to find a property management company to help with some of the work while you handle the rest yourself. If so, they might reduce their property management fee for you.
Do I need a property manager?
Depending on how much time you’re willing to spend on rental tasks or if you’d prefer to just pay a property management fee rather than handle everything yourself, you may or may not need a property manager.
Here are some reasons why you might decide to handle some tasks on your own or hire a property manager to handle everything.
Hiring a property manager to take care of some of the duties of the landlord will:
- ⬥ limit your need to respond to tenant calls about urgent repairs or deal with evictions, which will free up some of your time
- ⬥ possibly save you money on costs associated with property management
- ⬥ provide you with a knowledgeable individual who is capable of handling significant issues like litigation and maintenance
- ⬥ give you discretion over any duties you choose to assume as a landlord
Employing a property manager to manage all landlord duties will:
- ⬥ save the time you would have spent performing landlord duties
- ⬥ cost more in the end, but many property owners accept this trade-off
- ⬥ give you the peace of mind that your rental property is being managed by knowledgeable experts
How to find a property manager
If you haven’t purchased your investment property yet, find out if any local property management companies will take on a single rental.
Many businesses only want to work with people who own multiple properties or apartment buildings and complexes, so they may not be interested if you currently only have a single residential home available for rent.
Here are some steps to help you find and hire a property manager:
- Check with a real estate agent or your friends and family for recommendations.
- Research property investors’ associations in your state, neighborhood or online forums for reviews.
- List a few property management businesses that might fit your needs.
- Compare each company’s fees.
- Verify the certifications and licenses of each business.
- Read the property management contract for each potential property manager.
- Examine the properties that your potential property manager is currently managing
- Set up interviews with various property management businesses to determine which one is the best fit.