If you are investing in a property with a view to renting it out, sooner or later you will have to decide whether or not you want to hire a property manager. You can offload most of the hassle and legwork which comes with owning a property by investing in property management.
Yet, at the same time, you might assume that hiring a property manager in Centennial, Littleton or Aurora will cost you a lot of money and will not be worth your while. Regardless of whether it makes financial sense or not, you need to understand what a property manager actually does before you consider hiring one.
The foremost responsibility of property managers is to deal with the tenants; using their experience and expertise, they filter the list of interested parties and then screen them so that you get the best tenants. In addition to managing tenants, they also handle the maintenance and repair on your property. Property Managers know the market and will be able to get you fair rental value for your property. They will ensure that you get the best value for your money. This way, you can create a passive income stream without being directly involved in the process.
However, if you still aren’t convinced about the benefits of professional property management, there are some specific situations in which you absolutely should hire one. Let’s go over a few of them:
Owning Multiple Units or Multiple Properties
If you have multiple properties or if your property has multiple units, managing it can become difficult. Managing individual units is difficult and the more units there are, the more difficult it will get for you to handle the task. If you have a fulltime job, you will have a hard time balancing the responsibilities with your work.
Location of your Property
If you don’t live near the property you own, it can be difficult for you to get down there in case of an emergency. Even if there isn’t an emergency, you will have to be actively involved in the running of your building, which can eat into your schedule. The constant commuting can also get tiring after a while. This will only increase the hassle of managing the building for you.
Passive Income Property
Some property owners are in it just for the investment and they don’t want to be actively involved in managing their investment. If you fall into that category, you will have to hire a professional to manage your property for you. This is a great option if you don’t want to be hands-on as a landlord and just want to benefit from the passive income that you generate from it.
Photo credit: New Home, Mark Moz (link to his page: https://www.flickr.com/photos/106574022@N04/), Source (link to: https://www.flickr.com/photos/106574022@N04/11477884125), CC by 2.0 (link to: https://creativecommons.org/licenses/by/2.0/)
Planning on Building a Portfolio of Investment Properties
If you are getting into property investment for good, i.e. you want to invest in more properties in the future, it is better to hire professional property management so that you can stay in control of your properties even if you are not directly involved in managing them.
Lack of Time
The other category of property owners are those who are interested in managing their properties on their own but they don’t have the time to do it. Managing your work and family along with managing your property can be extremely taxing, placing extra strain on your health as well as causing stress.
Investing in Properties with Complex Legalities
Some properties are located in areas or are parts of programs which require a lot of paperwork. For instance, if you have invested in a property in an affordable housing project, there will be several regulations and laws that you have to keep pace with. This can involve a lot of hassle, especially when it comes to the legal requirements. A property manager will ease your burden because they know the ins and outs of managing a property in a special zone or which is part of a program.
Last, but not the least, as long as you can afford the cost of hiring a professional property manager, it is always better that you exercise that option. As you can see from the points mentioned above, managing a property involves performing a number of tasks. This can get stressful for you and you will have a hard time keeping everything under control.
If you find yourself in any of the situations mentioned above, you absolutely should consider professional property management services. The money you spend on hiring a property manager will be worth your while and eventually, increase the value of your property and lead to a higher rental income for you.