One of the most important decisions to make as a real estate investor is whether or not you should hire a property manager to handle your rental properties. Can you effectively manage your properties on your own? Some people do so quite effectively. That said, most landlords are better off hiring a professional property manager. Whatever path you chose, it pays to be informed so that you make a wise decision. Here are the 7 reasons why hiring a professional property manager is the right choice for most REIs:
- You Will Make More Money Over Time With A Property Manager. A good property manager will save you money over the long haul by finding the right tenants and managing all aspects of your landlord-tenant relationships (collect rents, take care of routine and emergency repairs, handle conflict situations, etc.). When one of your properties is vacant, a property management pro knows how to find qualified new tenants quickly, decreasing income loss due to vacancy. Also, do you know the optimum amount of rent to charge? An experienced management company conducts thorough market studies to set the right rental price for your properties, striking that all-important balance between maximizing income and achieving a low vacancy rate.
- Property Managers Know The Law. Ensuring that you comply with all state and federal laws regarding discrimination in screening and choosing tenants is crucial if you want to avoid legal hassles. If you need to evict a tenant, a good property manager knows how to handle it in the most efficient way possible within applicable law boundaries. A single lawsuit from a disgruntled tenant can cost you thousands of dollars in legal fees, even if you prevail in the case. On top of the usual legal issues you have to deal with, the COVID crisis has added even more concerns. Do you know how the COVID pandemic has changed the federal and New York State laws and regulations regarding tenant-landlord relationships? At Sterling Property Solutions, we do, so our clients don’t need to keep up with the latest property management rule change from Albany or Washington, D.C.
- Your Time Is Valuable. Odds are that you have significant demands on your time. You probably have a full-time career, family responsibilities, and much more to deal with every day. Every minute you spend dealing with tenants is a minute you could have spent doing something else. Here’s an aspect to freeing up your time that’s not often mentioned, but it should be. Suppose you don’t have to answer midnight calls to fix a leaky faucet or spend a weekend running down a contractor to clean up the mess left by a fallen tree. In that case, you could be focusing on finding more investment properties to purchase, which could considerably increase your income.
- Let A Pro Handle Your Vendor Relationships. As an REI, you know that eventually you’ll need the services of a handyman, a contractor, tradesmen, and suppliers. Do you know who to call when you need these services? Maintaining relationships with vendors is a time-consuming task that requires not only work but also expertise. A savvy property manager not only knows which phone to ring at 8 pm at night to get a service person at a rental property at 8 am the next morning, but they also oversee all maintenance projects making sure that the work is done on time and within budget.
- It’s Important To Have A Buffer Between Yourself and Your Tenants. Renting out property is a business. Getting too personally involved with your tenants can cause problems. Your interests are best served by keeping your relationship with your tenants on a strictly professional level.
- Investment Flexibility. If you’re like most REIs, you likely invest in properties close to where you live. This is natural but also unnecessarily limiting. For example, at Sterling Property Solutions, we have clients who live in other states and overseas. There might be a great investment opportunity in a neighboring state or even across the country you would love to pursue. If you use a professional property manager, where you live is less relevant.
- Peace of Mind. I left the most crucial reason to hire a property manager for last. Peace of mind as an REI means that in regards to the entire property management equation – from finding tenants, to managing them, to taking care of your properties, addressing legal concerns, time management, the whole experience – you can lay your head down at night and say, “My property manager has got this.” What’s that worth? For many REIs, it makes sense to pay an excellent property management firm a fair fee in exchange for knowing that everything is being taken care of at all times.
At Sterling Property Solutions, we are all about helping investment property owners maximize their income and minimize their headaches. Whether you’re new to being an REI or you have multiple investment properties, we can help you. Please give me a ring at 914-355-3277 or send me an email at Linda@Sterlingpsi.com.