Why you need a Property Management Firm?

This is one of the most obvious question that comes to mind of every Property Owner or Landlord, whether they should hire a Property Management Firm or not. While every investor’s situation is different, there are certain scenarios and factors that typically pre-dispose owners, one way or the other. Here are some questions that are intent to help you determine if you should consider hiring a property manager.

1. How far you live and how frequently can you visit your rental property on a regular basis?

If you live close to your property then you may be able to make regular visits required for maintenance, inspections, collections, etc., otherwise more the distance, the higher your travel time and expenses will be. You should plan making monthly scheduled visits and there is always the potential for a middle of the night emergency call that requires your immediate attention. In the long run, does this sound feasible to you?

2. How do you deal with stress? Are you a patient person?

This is a tough one. We all like to think of ourselves as level-headed and even-keeled, but at the end of the day it takes a special kind of person to deal with the ups and downs of property management. Behind the seemingly simple task of collecting rent, every month lie a number of unpredictable problems can push people to their limits. Ask yourself how you would react in the unfortunate event that tenants might create for you:

  • Get in fights with other tenants or neighbours
  • Have domestic disputes
  • Conduct illegal business in the dwelling
  • Carry on all night parties and revelry
  • Try to sneak extra people or animals into the home
  • Habitual late payment of rent
  • Trash the property
  • Incite the wrath of the HOA because of repeated deed restriction violations
  • Dealing with someone who is angry or just being difficult
  • Overzealous maintenance requests

Does this stuff happen all the time? No, but when it does, it has to be dealt with an efficient and professional manner. If you feel like you can handle the stress these situations would raise, and you think doing so is worth saving on the management fees then it may be in your best interest to manage rental properties on your own. Otherwise, please do ask us for a FREE no-obligation quote for your services.

3. Are you currently inundated with your property(s)?

Managing rental properties can become quickly overpowering, even for experienced investors. There is always something going on that requires attention and it takes very little time for things to get out of hand. Hiring a property manager can provide an opportunity to regain control and restore stability to both your properties and possibly life in general.

4. How many rental properties do you have?

As your portfolio grows so do the management challenges and it becomes easier for things to fall apart. Investors with large portfolios stand to reap significant benefit by leveraging the efficiencies a property manager can provide. Size can also constrain investors’ ability to consider purchasing new properties if they’re already exceeded out managing their current holdings. Don’t limit yourself just because you can’t manage more properties.

5. How well can you deal with issues like maintenance and repairs?

Land lording requires a number of distinct skills that you may or may not have experienced. Things like maintenance and repairs, understanding of landlord tenant law, book keeping, marketing, etc. If you can’t do it yourself, do you know who to call? Finding reliable handymen and contractors can take a while and in the mean time you may unknowingly hire people that are unethical, uninsured, do poor quality work, over charge etc. Maintenance and repairs are significant components of land lording and if you question your ability to ensure the work is done well and in a timely manner, you might want to consider hiring a property management company.

6. How fast are you able to get your unit rented?

Advertising, field calls, and showing the unit can take a considerable amount of time, but are critical tasks as vacancies will quickly eat into your profit margins. If you question whether you have the skills or the time to make this happen, OR if you have historically had an unacceptably high vacancy rate, you may want to consider hiring a property management company.

7. Are you always available 24*7*365?

It’s important to answer this question honestly, because when an emergency happens at your property you can’t ignore it. Your special event, important meeting, vacation, or personal crisis doesn’t relieve you of your obligation to your tenant. These emergencies don’t happen all the time, but when they do you have to be willing to handle them immediately. Can you handle being called at 2 in the morning to fix someone’s overflowing toilet? Well we are not saying that this will happen, but just in case.

8. Do you have a firm hand in handling serious issues when required?

Many new owners dislike feeling like the bad guy and try to be understanding by making exceptions. The problem is that this only invites additional abuses and excuses by tenants. Late payments must be dealt immediately, and while sometimes a friendly reminder is all that’s needed, other times, it can be a very confrontational process ending in eviction. Unlike running a charity, running a successful rental business means enforcing the rules. If you don’t want to be bad guy sometimes than we suggest you to hire a property management company.

9. How well do you understand the laws governing land lording and general rules of the country?

Ensuring the property runs in accordance with the law is critical in both preventing lawsuits and shielding yourself from liability if you are sued. Familiarity with contracts is also very important as your rental agreement is the only binding agreement between you and the tenant.

10. Lastly, is managing property the best use of your time from a financial standpoint?

Ultimately, your decision to hire or not hire a management company should hinge on whether it is a good fit with your lifestyle and makes sense financially. Individual investors will have to assess the opportunity cost of both options based on their unique circumstances.

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