If you’re just getting started with real estate investing – or if you only have one or two single-family properties in your portfolio – you may find yourself debating whether a property manager is worth the investment. And while it’s a fair question to consider, you’ll soon realize that having a property manager in your corner makes a ton of sense.
1. Hands-Off Tenant Screening
Tenant screening is arguably one of the most important elements of being a successful landlord. With it, there are fewer headaches and better ROI. Without it, you risk having the wrong tenants in your property (which seriously hurts your chances of maximizing profitability and cash flow).
A good property management company not only has good sources for tenants, but they also know how to screen them. This hands-off vetting process allows you to benefit from well-screened tenants without eating up your schedule and consuming all of your time.
2. No Midnight Phone Calls
As a landlord, there’s nothing worse than the frantic midnight phone call from a tenant who is dealing with a burst water pipe or clogged toilet. But if you self-manage your own properties, you’re the person getting these calls.
When you hire a property manager, you’ll never have to worry about fielding emergency phone calls on nights or weekends. In fact, you won’t ever have to field phone calls directly from tenants. Instead, tenants are given the direct line to your property management company. They deal with the issue and only contact you to keep you informed on a need-to-know basis.
3. Access to the Best Professionals
It takes a team of people to keep a rental property in tip-top shape. If you’re on your own, it’s up to you to assemble a hodge-podge team of people to deal with different aspects of the business. When you hire a property management group, you get access to a carefully curated team of professionals who are already well-versed in how to handle various situations. This includes contractors, plumbers, electricians, real estate agents, tax specialists, real estate attorneys, etc.
4. Legal Protection
Property managers know the law inside-out. They know how to legally screen tenants, what to include in a lease agreement, how to handle complicated disputes, and what not to say in certain situations. This keeps you, the landlord, out of trouble.
5. Better Use of Time
You can’t afford to get caught up in the details of unclogging toilets, chasing down rent checks, and cleaning up properties in between each set of tenants. You have a business to run. By partnering with a property management company, you can outsource the “busy” work at a cost-effective price point while preserving your schedule for bigger picture items like finding new deals, securing financing, and growing your portfolio.
6. Less Emotional
If you’ve been in this industry for any length of time, then you know just how emotional things can become when there’s money and housing involved. Someone’s home – whether they rent it or own it – is a special place. It’s the most intimate place in the world to that individual. When something or someone puts that at risk, the emotional fallout can be all-encompassing.
As a landlord, it’s impossible to be totally immune from these consequences. However, having a property manager is like adding a massive layer of insulation between you and the issue. Rather than being the first person a tenant calls when something goes wrong, you have an intermediary third party to step in and absorb the brunt of the blow. They put out the emotional fire, which leaves you to focus on making objective decisions.
Find a Property Manager for Your Rental Properties
You don’t need dozens of properties or entire apartment buildings in your portfolio to justify hiring a property manager. Having an online condo management software system can help you and your tenants communicate and stay organized. Whether you have one door or hundreds, the right property manager can have a significantly positive impact on your ROI...and your sanity. The key is to select the right one.
As you search for the right landlords, be sure to do your due diligence. Compare different options, ask the right questions, and choose based on the objective facts in front of you. A property manager won’t guarantee positive cash flow, but they can certainly help you achieve your investment goals at a faster pace.