Do you Need a Good Property Manager??
If you are one of the millions of homeowners that have been unable to sell your home, one viable option that may be worth consideration is renting your property. If you have entertained the idea of becoming a landlord, one of the first decisions you must make is whether to try it on your own or hire a property manager.
While hiring a property manager can be great asset for your new, “involuntary” rental business, it can also be an expensive nightmare. Carefully, review the factors to determine if you need a property manager, and if so, how to find the one that is right for you.
What does a Property Management Company Do??
Management companies deal with prospects and tenants. They market your rental property, collect rents, handle maintenance and repairs, respond to compliants and take care of evictions. A good company saves you time, money and worry, giving you a peace of mind that your investment is in good hands.
Do you Need a Property Manager??
Hiring a property manager has many benefits, but it can be expensive. In addition, relying on a third party is not for everyone. Ideal candidates for professional management include:
- Distant Landlords: If you don’t live near the property, management can be invaluable, if not necessary, for many issues that will arise.
- Hands Off: If you hate the idea of meeting and interviewing tenants, receiving late night calls about stopped up plumbing or view rental property as an investment…you probably need a manager.
- Too Busy: If you don’t have the time to landlord, work, and take care of the family, then management may be a good way to spend your money.
- Lots of Property: The more rentals you own, the more you deserve a manager.
- Section 8 or Affordable Housing: If your property participates in one of these programs, the rules are extremely complicated. It is usually worth hiring a manager that has experience with your particular housing program to insure full compliance.
- If you Can Afford It: A manager is always a great option, if you can afford the fee’s. Typically, managers receive 5%-10% of the collected monthly rent for the management of the property. In addition, most charge a fee equal to 1/2 of the monthly rental amount for procurring a new lease. (If the property rents on a yearly basis, the leasing fee would only be paid once per year.)
How to Find a Good Property Management Firm??
- Referrals from trusted colleagues or friends is always best.
- Check out the website of the National Association of Residential Property Managers. Click on Search Property Managers.
- Visit the Institute of Real Estate Management and click on Find a Member.
In conclusion, hiring a property management company can be a fantastic option, or not. If you have decided to hire a property manager, or if you would like to learn specifics about what you should ask beforehand, please check back with our blog on Tuesday, July 1st.
The topic will be “What Should you Look for When Picking a Property Management Company”?