Do You Need a Property Manager?
Written by: Veronique Hart, Property Management Specialist - Published: Nov 22, 2022
You may have reached a point in your rental investment career where you find yourself questioning whether hiring a landlord or property manager is right for you. Many real estate investors are wary of paying for this service because they are unsure what they will receive in return. However, there are many benefits to hiring a property manager who can help you grow your business and protect your investments.
Interested in searching for a property manager near you? There are thousands of experienced property managers nationwide. According to the National Association of Residential Property Managers, approximately 38% of all property managers have worked in the industry from 3 to 10 years. Another 51.7% have worked in the industry from 11 to over 20 years. This vast wealth of experience can be extremely valuable to rental property investors like you.
Top 10 Reasons Property Owners Hire Landlords
What are the most common reasons to hire a landlord or property manager? While every property owner has different needs, many eventually make the choice to hire property management. The following guide presents the top 10 reasons you should consider hiring a landlord for your rental properties.
1. Properties in a different city
While most property owners begin investing in local properties, as their business grows they may look at other markets in different cities or even states. However, as a property owner’s geographic distance increases, so does their need to regularly check in on their investments. When you hire a local landlord, you can acquire properties in many different cities with the assurance that someone is available to handle the day-to-day responsibilities of managing a rental property.
2. Accurate rent prices
If you own rental properties in multiple cities, it may be difficult to keep track of local market fluctuations in each area. Even cities that are in close proximity to each other may have widely varying rental prices. The more properties you own, the harder it is to ensure your properties are accurately priced. A property management firm is designed to keep track of the average listing price of similar properties to ensure you are charging tenants an accurate price for the size, location and amenities of your rental units.
3. Relationships with reputable contractors
One of the major benefits of working with a property manager is that you will benefit from their connections with reliable local contractors. If you need to hire a plumber, electrician, painter or other maintenance staff in another city, you won’t need to go through the hassle of remotely vetting these contractors yourself if you have hired a property management firm. Without the connections of the property manager, you could run into unreliable contractors or find yourself overpaying for maintenance jobs.
4. Years of management experience
Are you new to property management? Many property owners begin investing in rental properties to begin a new career or to invest in passive income opportunities while employed full-time elsewhere. If you are new to rental property ownership, the years of experience of a property management firm can prove essential to the success of your investment. Most property management firms have dealt with every possible form of complaint, issue or repair situation that you may not have prior experience handling.
5. Compliance with local regulations
To maintain your rental property, it is important that you abide by all applicable local laws and regulations. While this is difficult enough when managing multiple properties, this can become even more complicated if your rental properties are across state lines. Local property managers have the specific knowledge and experience to ensure rental properties meet all local guidelines, including scheduling regular inspections and preventative maintenance. By hiring a landlord or property manager, you can ensure you won’t be hit with surprise fines for not abiding by local guidelines.
6. Filling vacancies and screening tenants
A vacant rental unit is an investment that is losing money. When tenants move out, it is important that you fill that vacancy as soon as possible. If you are juggling multiple rental properties, you may not be able to post a listing, screen tenants, process applications and schedule move-in dates on your own. Luckily, filling vacancies and screening tenants are two of a property manager’s main jobs. Once your property manager receives a tenant’s notice, they will immediately work to find new tenants to fill the vacancy.
7. Face-to-face interactions with tenants
If you own multiple properties or live in another city, you may not have the opportunity to have many personal interactions with your renters. Many tenants may be put off if there is no one they can easily reach if they have questions or concerns. A local property manager can have regular, face-to-face interactions with your tenants to ensure both tenant satisfaction and smooth operation of the property. If you own an apartment complex, tenants may even see and interact with office staff from the property management firm every day.
8. Prompt maintenance
Another benefit of the landlord or property manager’s proximity to your rental property is that, when issues arise, maintenance requests and emergencies can be addressed promptly. In fact, if the property management firm employs its own on-site maintenance workers, issues in your rental units can be addressed the same day by reputable staff. Prompt maintenance is important both for immediate tenant satisfaction and for long-term upkeep of your rental property investment. In fact, conducting regular preventative maintenance is one of the ways a property manager can ensure a return on your investment.
9. Marketing property
If you have a high vacancy rate, the problem may be that your rental property isn’t being advertised effectively. As a rental property investor, your professional experience may not be in property marketing or creating rental listings. Even if you have experience marketing your rental homes, marketing multiple properties can quickly become a full-time job. A property manager will either market your property themselves or use in-house marketing teams to ensure your property listings reach the right audience.
10. Prioritizing owner’s time
Lastly, the best part of hiring a reputable landlord or property manager is the time and energy it will save you. If you are free of the day-to-day responsibilities of running a rental property, you are free to focus on either your primary occupation or expanding your rental property business. For this reason, it is important to hire an experienced property manager who will clearly communicate with you and conduct themselves professionally when dealing with tenants.
Should You Hire a Property Management Company?
In conclusion, if you find yourself in a position where you would benefit from on-the-ground, day-to-day management of your rental properties, hiring a property management firm can help. A quality property manager will give you the security you need to expand your rental investment portfolio and focus on the growth of your business.