Three (Bad) Reasons Rental Owners don’t Hire Property Managers
Though many rental property owners choose to hire professional property managers, some still make the decision to manage their investment properties personally. Here are three reasons that homeowners choose not to hire property managers, and why they might need to reconsider.
Not Understanding What a Property Manager Does
Many property owners think that all property managers do is collect rent. However, there are many other duties and tasks that good property managers handle on a daily basis. Tenant needs must be met. Repairs need to be scheduled and completed. Vendors must be vetted and paid. Empty properties must be marketed and rented to quality tenants. State and Federal laws and regulations must be complied with. A professional property management company does much more than just handles the rent money once a month.
Landlords Think They’ll Save Money
Many people who invest in rental properties do so for the second income but most don’t understand that keeping a rental property profitable can be difficult and risky. It can seem like a good idea to manage a rental property personally but even a single mistake can turn a property into a financial burden. Professional property managers such as Martin Feinberg protect property owners from costly errors. They help maintain properties, get rents paid on time, and keep good tenants in properties longer. An efficient management company will save more money for the property owner in the long run than it will cost. Besides that, property management fees are tax-deductible but personal time spent working on a property is not.
Managing Properties as a Hobby
Many people who choose not hire professional managers do so because they think of their rental property as a hobby. They assume that they can successfully manage their property for a few hours and few dollars a week. That’s not usually how it works though. Managing even just one property can seem like a full time job. Many property owners do not understand everything that is involved in investment property ownership and quickly learn that their hobby is taking all of their extra time. There is nothing wrong with delving into investment property ownership as a hobby, but owners need to understand that it is a time-consuming hobby that can quickly become very expensive without professional knowledge and experience.
Professional property managers may seem like an added expense that can easily be avoided, but their knowledge, connections, and skills can actually save owners time and money. In most cases, utilizing a professional property management company with a good track record and proven references will end up being a worthwhile investment over time.