When Do You Need a Property Manager?
Owning rental properties can be a dream come true or a nightmare. While some landlords are able to effectively manage their own properties from the start, many more consider hiring a property manager to be a wise investment.
If you do not live close to your rental property (even if it’s only across town), having a manager makes your life much easier. A good property manager keeps an eye on your property and alerts you to problems quickly so you can address them right away. Otherwise, you could be away on vacation only to find out that your rental house needs emergency repairs because you didn’t invest in gutter guards and water pooled on the roof.
Additionally, having a property manager collect rent makes it less likely that you will be taken advantage of by the renter. Good property managers screen tenants carefully and know how to collect rent on time every time. They also help with your documentation and bookkeeping, making your (or your accountant’s) job easier at tax time.
In fact, unless you live very close to your rental property and are 100% certain you have good tenants, you’ll almost always be a more successful landlord if you hire a high-quality property manager. The best way to find one is by word of mouth from other rental property owners. They know the importance of a good property manager, and you can learn from their mistakes and successes.
Always obtain three or more references from any property manager you consider hiring, and get the answers to important questions (like how they cope with vacancies and handle non-payment) before you hire them. You may save a little money managing your properties yourself, but what you spend in time and headaches can make the cost of a manager well worthwhile.
