5 Reasons To Hire a Property Manager if You Own a Rental Property
Did you know that a lack of supply and climbing prices were two primary challenges residential real estate investors faced last year? But whether you bought your first investment property in 2022, already own investment property, or plan to do so in the future, hiring a property manager makes sense. It’s one way to safeguard your investment and position yourself for success.
Are you interested in learning how a property manager can be a game-changer for owners of investment properties? Continue reading for five specific reasons to hire a property manager.
1. Help With Maintenance and Repairs
The reasons to invest in real estate are many. They include the following:
- Steady cash flow
- Protection against inflation
- Tax advantages
- Passive income
- Long-term security
- Investment diversification
But here’s the thing — your ability to take advantage of these benefits comes at a cost. If you spend hundreds of thousands — or more — on investment real estate, you need to factor into the equation some funds for maintenance and repairs.
It’ll be hard to attract, let alone retain, renters if your units are not up to par. Hiring a property management firm means having a third party stay on top of necessary maintenance and repairs. Your investment properties will increase in valuation and attract renters when in good shape.
2. Find Suitable Tenants
Another reason you should hire a property manager if you own investment real estate is the service provider will help you find suitable tenants. Don’t underestimate how much hard work goes into combing over would-be tenants and selecting the most qualified applicants.
A property management firm will have proper tenant search processes. It will know the law to avoid illegal discrimination charges, check for solid credit history, see if there have been past criminal convictions, and check to ensure there’s no history of past evictions.
When a property manager conducts the process of finding suitable tenants, you’ll more likely than not get better tenants than if you handled the process yourself.
3. Get Good Work-Life Balance
Do you want to achieve a healthy work-life balance? If you’re on the go all the time or have too many responsibilities on your plate, you may never be able to achieve this objective.
Purchasing an investment property is one thing. But properly managing it and meeting the needs of tenants is another thing entirely. Unless you want to be tethered to your investment properties and have no time for other things, consider hiring a property management firm. You’ll have a professional third party providing the support you need. It’ll take a load off your mind.
4. Customer Service
Are you okay with tenants trying to reach you at 3 am because of a blocked toilet? Will it bother you if tenants call when you’re eating dinner with your family? Providing good customer service is a must. But that doesn’t mean you have to be the go-to person if you’d rather not be.
Hiring a property management firm means you’ll get the support you need. You can designate the property manager as the go-to person for tenants. If something requires your intervention, the property management firm will contact you for your input.
5. Help With Setting Rental Rates
Do you know how much you should be charging for rent? A property manager will know the going rates for different types of rental units in the area and will help you set competitive rates. The worst thing you can do is overcharge or undercharge. If you do the former, you’ll scare off tenants who aren’t interested in paying more than the going rates. If you do the latter, you’ll attract plenty of would-be tenants. But you’ll also do yourself a disservice by charging too little.
If you’re going to invest in real estate, it pays to consider hiring a property manager. It’s not a requirement. But for the above reasons, it’s the sort of investment that makes sense.