Everyone wants to be in the real estate game, right?
The truth is, everyone wants to Profit from the real estate game, but that doesn’t necessarily mean you want to be in the middle of it.
A lot of owners decide to handle the nitty gritty for themselves, because their eyes are on the money prize and they don’t want to forfeit a dime to anyone else.
But how much is your time worth? What about your peace of mind?
Because I can promise you, tenant and property management has the potential to steal all your hours and threaten your sanity if you aren’t experienced in the trials of the industry.
But beyond your personal reasons, there are professional and financial reasons why hiring a property manager is without a doubt your best option as a property owner.
Now, you may think that you can handle the responsibility of managing your own property, and you may be right. But the real question is, do you actually want that responsibility?
Answering maintenance requests in the middle of the night, dealing with cranky tenants with the odd electrical or pest problem that isn’t your fault, keeping up with collecting rent…there are so many things to consider.
You have to handle tenant agreements, leases, the tenant interview process, property upkeep, safety regulations, tenant questions and concerns, you name it.
Sounds exhausting, right?
That’s why the first undeniable pro to hiring a property manager is:
1. Reduced property management responsibility for you.
If time is money, not only will hiring a property manager lower your stress, but it will also increase your profits. Directly, having your hands off means allowing a professional come in to minimize your costs, which is a huge bonus.
But on top of that, a property manager allows you to be a hands-off owner with time to seek other profitable ventures while still maintaining a constant flow of income from your property.
Doesn’t that sound like the dream?
2. Property managers aid in vendor savings.
In addition to your property manager handling all the property upkeep, utilities, maintenance issues, and so on, your manager will also be the one to schedule the vendors that do the dirty work.
In the big wide world of real estate, there are many vendors that try to take advantage of inexperienced renters and owners, and upcharge astronomically for services.
But, with an experienced property manager, you aren’t just paying to get rid of the hassle, you’re also paying to get access to industry connections through your manager.
Property managers generally have a roster of vendors they prefer to use and have worked with before. These venters have a strong incentive to offer fair rates and good service, or else they will lose the consistent business of your manager.
This way, you can be sure never to get gipped on a simple maintenance job, and you don’t have to be the one to chase down the vendor!
3. Tenant sourcing and screening is streamlined.
Tenant sourcing and screening can be one of the most difficult, time intensive, and risky parts of being a property owner.
The first fear with tenants is admitting someone unsuitable due to income, behavior, or some other reason. When offering a lease to someone, you want to be sure that they will make payments and be respectful of the property, or else you could be the one that loses money.
In addition to making sure you find responsible renters, it can be hard to know how to carry out the application process.
The laws governing suitable questions for potential tenants are strict and detailed, and you could be financially at risk if you accidentally ask a wayward question.
With a property manager though, you are removed from liability and you are handing the reins to a trustworthy employee that knows the rules inside and out.
Property managers also know how to haggle with tenants and are experienced in the leasing process, meaning they know how to answer tenant questions and ensure that the acceptance process runs smoothly.
In the end, if you account for vendor costs, potential harm to your property, potential rent left unpaid, possible civil costs, and you own peace of mind, I think you’ll see why going it alone with a property is not the best, or the most lucrative option.
With a property manager, you get to step away from the stress of property ownership and management, but you still get all of the benefits—including that large chunk of change that lands in your bank account every month.