So you’re thinking about handling your own property management, but you don’t know if it’s the best move for you. You’re seeing money signs instead of seeing some of the clear signs to avoid it all together. The role of a landlord and a property manager differ considerably. Not being ready to take on double the responsibility will send your life into a never ending “stress tunnel.”
If you fall under any of these situations, it might be a clear sign to leave it to the professionals:
1. You Have a Limited Amount Of Time
Because property management is so time-consuming, you shouldn’t attempt it if you don’t have a lot of free time. If you have a full-time job, there’s a chance you won’t have enough time to interact with tenants and respond to their concerns in a timely manner.
2. You Have a lot of Rental Units
Managing one or two units isn’t that difficult, but managing dozens of rental units takes a lot of time and effort. If you own several multi-family buildings, it makes sense to hire a property manager to keep all of your units full. Hiring a property management company is especially important if you own property in several different cities or states.
3. You Do Not Live Near Your Properties
If you do not live close to your rental properties, it is difficult to manage day-to-day operations. You’ll have to rely on tenants to tell you when repairs are needed, and it will also take longer to realize if you have a problem with one of your tenants. If there is an emergency, such as a fire or flood, you won’t be close by to arrange for emergency repairs.
4. You Participate In Affordable Housing Programs
State and federal affordable housing programs provide rent subsidies for people who meet certain income requirements. If you participate in one of these programs, there are a lot of recordkeeping requirements. These programs also have strict guidelines regarding the condition of participating rental units. If you do not know the guidelines inside and out, it is best to hire a property manager. An ethical property manager will ensure your rental units are in compliance with all program guidelines.
5. You Do Not Want To Supervise Workers
Supervising workers is one of the most problematic aspects of managing a rental property. When you own a rental unit, you might have to hire people to do plumbing repairs, replace damaged fixtures, paint the exterior of the building, or treat the unit for rodent or insect infestations. It takes a lot of time and effort to find qualified workers, and then you have to spend time submitting work requests, approving budget changes, and inspecting the finished work product.
Property management companies typically have a network of experienced professionals to perform all necessary repairs, so working with a property manager eliminates the need for you to hire and manage contractors.