Your friends will notice it first. You look tired or stressed. You are never free to get together, or phone calls suddenly call you away from activities you looked forward to for weeks. Your family complains about your long hours, and you can’t remember the last time you took a week off. These are real life situations that prompt you to think about hiring a property manager. Here are questions to ask about your rental business.
Think About Hiring a Property Manager
Is Your Home Close to Your Rental Property?
The more miles between you and your investment property, the harder it is to manage. The time it takes you to get to the property and the cost of getting there will add up. Hiring a good property manager can make sense and save you money.
How Many Units Do You Own?
As the number of units you own increases, so do your responsibilities. The more tenants you have, the more you will have to deal with maintenance issues, complaints, and vacancies.
Do You Have Experience Managing Property?
If you want to invest in real estate but don’t know the first thing about property management, hiring an experienced property manager can be the right choice for you. Learning as you go can become very expensive. It is critical to do your research and thoroughly screen a property manager if you decide hiring one is right for you.
Can You Afford to Hire a Property Manager?
Before you hire a property manager, you need to look to your budget. Property managers are not free. Managers will charge a fee, on average, between 4% and 10% of the monthly gross income for the property. Some property managers will also charge tenant placement fees, which is a bonus for finding a tenant. These fees will vary from a few hundred dollars to as much as one month’s rent.
Do You Have the Time to Manage Your Property?
If you have a full-time job while investing in property and cannot give your property the attention it needs, your investment’s success could depend on hiring a good property manager.
If you feel like property management’s daily obligations are taking away time from making more money at your other job or looking for other investments, hiring an outside manager may be the right move for you.
Are You Willing to Give Up Control?
Property managers can be in charge of everything from collecting rent to filing taxes for the property. Are you willing to give someone else that much control? While they may have the experience and a piece of paper that says they are certified, do they have the same passion for your investment?
Are You Willing to Take on the Liability of a Property Manager?
Just as property managers can make decisions on your behalf, they can also make mistakes on your behalf, and the mistakes can cost you a lot. Property management contracts often have something called a “hold harmless” clause meant to protect the manager, except in instances of gross negligence, by placing the responsibility on the property owner
Do You Have a High Vacancy Rate or Problems With Your Cash Flow?
Good property managers are skilled at finding and screening tenants quickly and will have a network of reliable, cost-effective repairmen to handle emergencies. Most professional property managers will also understand the landlord-tenant law, thereby reducing the risk of a lawsuit.
Do You Work Well with Tenants?
Property managers are skilled in handling landlord-tenant conflict. They understand the landlord-tenant laws and can serve as the middle-man, or buffer, for problems.
2700 Kirkwood Highway
Newark, DE 19711
(302) 995-2550 fax
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