When to Hire a Property Manager to Manage Your Investment Properties
You should consider hiring a property manager if:
You have lots of properties or rental units.
Managing one rental property can be difficult and time-consuming. Managing multiple units can quickly become overwhelming. The more rental properties you own the more likely it is that you will benefit from hiring a professional property manager.
You don’t live near your rental property.
Many people buy investment properties out of state or in other communities. If your rental property is not located near your home, hiring a property management company will enable you to know what is going on in your unit, without you having to be there to find out.
You’re not interested in hands-on management.
Some landlords are well suited to the challenges of finding good tenants, maintaining properties, and staying in compliance with local and federal laws. Others view rental property ownership strictly as an investment opportunity and have no interest in hands-on management. In such cases, a property manager makes it possible to benefit from a rental property without dealing with the stress of managing one.
Your time is limited.
Successfully managing a rental property takes a lot of time and focus. Even if you enjoy being a hands on landlord, you might not have the time to devote to it, especially if you have a separate day job. Using a management company may be the only way to make property investment work for you.
You’re suddenly inundated with management tasks.
Having a growing business is usually a good thing. However, too much growth may mean that you need a substantial amount of help to manage everything properly. At that point, hiring a property management company might be the only way to keep your investment property profitable.
You don’t want to be an employer.
Some rental property owners must hire a resident manager or other employees to help with their properties. When that happens, they are no longer just an owner; they become an employer. Being an employer means handling payroll and dealing with other legal requirements and considerations. Using a qualified property manager allows owners to avoid those and other hassles.
Your property is part of an affordable housing program.
If you take part in an affordable housing program, owning investment properties can get complicated. Typically, in these programs the landlord receives financial assistance, which may be in the form of a grant, low-interest loan, or tax credits, in return for agreeing to rent at least part of the property to tenants earning below a certain income level. This means that landlords must comply with a complicated set of rules to keep their benefits. In such cases, it’s usually worth hiring a property management company that has expertise and experience with the particular housing program in question.
Property ownership can be a good and lucrative investment, but managing rental units yourself can lead to expensive pitfalls. Knowing when to hire an experienced property manager like Martin Feinberg can make all the difference.