Real estate investment properties require time, money, and attention to maintain. While money comes and goes, time is something you can’t get back. How much time do you spend managing your investment properties? Do you ever wish your investments weren’t so demanding?
If you own an apartment complex, you probably have a property manager handling daily business. It’s next to impossible to run an apartment complex without a team of people, manager included. However, if your rental units are single-family homes and you’re trying to manage everything on your own, a property manager can also be a huge blessing in your life.
Should you hire a property manager? Yes, absolutely. Even if you only have one rental unit, a property manager (or professional management company) is a must.
Property managers free up your time
Having a property manager makes owning investment properties nearly hands-off. That gives you more time to pursue additional investments or tend to things in your personal life. A property manager can free up as little or as much of your time as you need by performing a wide variety of services.
If you’re not sure what services you need, most property management companies will offer a free analysis of your rental property to see what they can do for you. For example, you might only need someone to fill vacancies and handle evictions. Or, you might want a full-service property management package that handles everything including tenant screening, evictions, rent collection, and maintenance.
Whatever your needs, a full-service property management company will fill.
Property managers handle legal issues swiftly
A professional property manager will have the experience needed to handle legal matters swiftly and in accordance with the law.
Every landlord is bound to experience legal issues at some point, whether it’s an eviction or having to sue a tenant for extensive damages. Pursuing legal action is exhausting and costly, but also carries severe consequences when not handled properly.
Improper evictions carry the most risk because if a landlord illegally evicts a tenant, or breaks the law in the process, the tenant could win the right to remain in the unit. For example, there are many things a landlord can’t do during an eviction, like turn off the electricity, change the locks, shut off the water, or move a tenant’s belongings onto the lawn.
Additionally, landlords must follow state laws for giving proper notice to vacate before filing an eviction with the court. Failing to follow the law can result in huge fines including having to pay a judgment to the tenant.
Property management companies are great with conflict resolution
Ideally, your relationship with your tenants would be conflict-free, but that’s not always how it works out. Many landlords and tenants have ongoing disputes for various reasons. Many disputes arise in light of needed repairs or when it’s time to return the security deposit.
Professional property managers know exactly how to handle conflict in the moment and take them through to resolution. They also keep strict, detailed records and have bullet-proof lease agreements to fall back on when there is a disagreement, misinterpretation, or misunderstanding of the rental terms.
A property manager will save you money
Repairs and maintenance are two of the biggest expenses landlords have to deal with. Depending on the age of the investment property, a landlord can end up spending tens of thousands of dollars in roof and plumbing repairs alone.
Hiring a property management company gives landlords access to better rates for repairs from local contractors. Since property management companies deal with numerous properties, some contractors provide discounted services because the work is virtually guaranteed.
Want passive income from your investment? Let someone else do the work
If you’re committed to creating a hands-off investment that generates passive income, you need a property management company to do the work for you. You can’t create passive income if you’re constantly chasing emergency calls at three in the morning and running around filing evictions.
If you haven’t outsourced your landlord duties yet, it’s time to consider what life would be like if you didn’t have to work so hard. Do you enjoy being a landlord? Are you passionate about your duties? If not, then hiring a property management company is the best solution.
I’m a single mother of 2 living in Utah writing about startups, business, marketing, entrepreneurship, and health. I also write for Inc, Score, Manta, and Newsblaze