Depending on the type of property and the situation of the owner/landlord, property management can save a ton of time and energy. It also has a sizable return on investment, especially when you consider all of the time consuming – and dollar consuming – responsibilities associated with managing the property.
The following are some questions to consider that offer insight into whether hiring a property management company is the right decision for your property.
Is a Property Manager Necessary?
How Close to Your Home Is Your Rental Property?
The more miles between you and your investment property, the harder it is to manage. If your primary residence is a substantial distance from your rental property it will be more difficult to market to new tenants, respond effectively to tenant issues, and to respond quickly to emergency repair situations. In addition, routine maintenance can be more problematic if you are doing it yourself.
When the distance between your home and investment property is a commute, it is a solid indication that you could benefit from a property management company.
How Many Units Do You Own?
The more units or properties you own and invest in, the less time there is to handle everyday responsibilities. With more tenants, an owner is required to handle more maintenance, tenant issues, and turnover you will have to tackle.
In addition, if your units are spread across multiple properties, you will spend even more time managing the cash flow of each individual property, as well as physically commuting from property to property to handle issues.
Do You Have A Lot of Experience Managing Property?
If you don’t have experience as a landlord, managing property can be pretty overwhelming. It is a good idea to discuss the situation with a locally focused property management team, in order to get a grasp of all the responsibilities and details. Understanding what managing a rental property entails is the first step.
When you are just starting out as a property investor, choosing the wrong maintenance contractor or having lag time between tenants could cut into your potential income. The job of an experienced property management company is to maximize your revenue.
GET IT RIGHT
Some issues are more important than others when it comes to property management. But it is vital to choose a company with full knowledge of federal and local housing laws. The regulations regarding discriminatory housing practices, for instance, can change yearly. Not only that, but each county and even municipality can have their own laws and codes. Working with an experienced, local Westchester property manager is the best way to avoid issues.
Hiring a property manager without enough experience, or who doesn’t have your property’s best interest at heart, can eventually lower the value of your investment.
This is why it is so important to do your research and thoroughly screen a property manager if and when you decide hiring one is right for you.
Do You Have the Time to Manage Your Property?
If you have a full-time job while you are investing and don’t have enough time to dedicate to the upkeep and marketing of your property, the success of your investment could be highly influenced by the quality of your property management company.
Everyone knows – time is money. If you decide that the day-by-day responsibilities of managing your property take too much time from your other career or investment pursuits, hiring an outside manager is likely the best choice for you.
Do You Have a Vacancy Issues or Cash Flow Problems?
The top property managers, like Sterling Property Solutions are skilled at marketing all types of properties, including residential, commercial and condos. Look for a firm with local market knowledge that will allow their marketing plans and network to find new, high quality tenants for your property.
A good property management team will also have a large, local network of affordable sub-contractors and repairmen to resolve emergency issues.
Lower your possible risk of costly lawsuits by working with a property management team that has comprehensive knowledge of local tenant/landlord law.
What is Your Tolerance for Dealing With Tenants?
Many property owners and investors find dealing with tenant issues is one of the most difficult aspects of property management, including rent collection, disputes, and maintenance issues. Good property manager are highly experienced and successful at resolving conflicts. They have a comprehensive knowledge of landlord-tenant law, and can act as a shield, or cushion, between you and tenant problems. Additionally, if the tenant understands they are working with a highly professional third party, they may behave more professionally.
Whether to hire a property manager isn’t always a straightforward decision. A lot of factors come into play. But if you are new to property investing, or your time would be better served following other pursuits, then picking the right property manager is a great choice.