No matter what kind of property you own, whether residential or commercial, multi-unit or single-family, managing and renting out a property is not easy. It requires a lot of hard work and patience to maintain it, find the right tenants, and act responsibly as a landlord.
So if you have a full-time job or live out of state and find it hard to manage the property, you should consider hiring a local property manager who will help you with marketing your property, dealing with tenants, repairs and maintenance, rent collections, and more.
In this post, we will learn everything you need to know about hiring a professional property manager.
Is it Expensive to Hire a Property Manager?
When people hear about hiring a property manager, the first thing that comes to their mind is the cost. Most of them think that property managers are expensive. However, looking at the amount of work they handle on a monthly or everyday basis, it appears that hiring a property is not too expensive.
In most cases, managing a property is not that complicated, but it may consume a lot of time, particularly when there’s some property issue or you are looking for a new tenant.
Generally, a property manager charges a fixed rate of 10% of the rent you get. For instance, if you get $1200 rent from your tenant per month, you will have to pay your property manager $120 per month for their services. It leaves you with a cash flow to pay for your insurance, mortgage, property taxes, or any other fees.
What Services Does a Property Manager Provide?
As part of the monthly fees they charge, the property manager provides plenty of services to the landlord. Here are some of the services they offer:
- Advertise and market your property online and in print.
- Look for potential tenants.
- Take calls from current or potential tenants.
- Collect rental fees and deposits.
- If needed, evict non-paying tenants.
- Conduct monthly or quarterly house inspections.
- Schedule emergency or routine maintenance.
- Show the property to new tenants.
- Coordinate with home warranty companies and contractors.
Other than the services mentioned above, a property manager also fully understands the local as well as the State law, which includes several aspects of renting like application denials, evicting non-paying tenants, accepting renters, and more.
Local and state laws may include a number of specific pieces of information that you are not aware of. Unless you are into legal stuff, it’s nearly impossible to keep up with such details and new changes in the policy.
Thus, hiring a property manager relieves you of all the burden of understanding the law as he/she can handle everything related to legal matters.
Is A Property Manager Worth The Cost?
The answer to this question entirely depends on your profit margin. So to make a decision about hiring a property manager, you should first analyze the income generated from your investments. If you are able to cover all the other rental property costs like mortgages, property taxes, repairs, etc. and still save some profit out of it, you can easily hire a property manager.
Additionally, it also depends on what you want to do with your property and whether you have the time and expertise to manage it yourself. So if you feel that day-to-day responsibilities of property management are consuming more of your time that could be invested somewhere else, hiring a property manager might be the right choice for you.