Real estate investors who find themselves covered up with the 24/7 responsibilities of being a landlord can get weary, frustrated, and stressed. Nobody enjoys being called constantly, particularly when your phone rings with emergency maintenance needs during the night.
Although it's rewarding to purchase multi-unit properties and single-family homes, it's not always easy to be the landlord as well. You can do it yourself, but there comes a point when the risks of DIY outweigh the benefits, and it's time to hire someone to step in and manage your properties.
Property management companies take the sting out of residential real estate investing. Among other things, they collect rent, screen tenants, attend to maintenance requests, and stay up on real estate law so properties are in compliance with it. How do you know it's time to hire a property manager for your residential property? Here are some signs the time of it:
Your rental properties are not in your area or in your state
When certain problems arise--such as someone has to be evicted, or there is a flood in a unit--they have to be taken care of in person. If it's a long commute or an out of state commute, it could get pricey and time-consuming.
Hint: Property management companies take care of what has to be done in person, so you don't have to make the inconvenient commute to your rental property.
You have multiple rental properties and it's getting to be too much
It's mastering the details that makes being a landlord go. It may have been no problem if you had a property or two, but as you increase the number of properties you have, it can be a lot. There's risk involved when you start cutting corners on tenant screening, accounting, or preventative maintenance. One mistake can cost you big in the long run.
Tip: Property management companies are proficient at managing multiple properties because they do it all day every day. They have relationships with vendors, so when maintenance issues arise, it is no trouble.
Property managers are also adept at tenant screening and doing background checks so as to find the best tenants. They save you time and costly mistakes by doing the grunt work such as marketing, advertising, tenant requests, and much more.
You have too many vacancies for a long time
Residential rental property vacancies cost you each day they are vacant. You may not know how to market your properties or advertise forthcoming vacancies. It may be a battle to continuously have tenant retention, opening the door to vacancies and a decrease in cash flow.
Tip: Property management companies advertise upcoming vacancies in online classified ads and by employing off-site marketing methods. They have experience creating the right type of ads to deliver the best tenants to your investment property.
When maintenance issues arise, you don't have a network of vendors from which to draw
It can be tough trying to find reputable lawn care professionals, electricians, plumbers, and those with general handyman skills to fix maintenance issues in your properties. With the demand for both preventative maintenance and emergency maintenance throughout the year, it's vital to have the right connections with reliable professionals you can trust.
Tip: Property management companies have a broad base of contractors to employ for both preventative maintenance and emergency maintenance needs. They have a relationship built, confidence established, and a track record of success that gives tenants and owners peace of mind.
If it has become too time-consuming to be a landlord as well as an investor
Time is something that can never be replaced, and if you find yourself spending a lot more time on being the landlord of your rental property, it may be time for a change.
Hint: Property management companies take care of all the details so you can enjoy your life again. Free up your time to focus on what you do best, and revel in your free time again--uninterrupted by emergency maintenance calls or the hassle of dealing with unpaid rent.
You don't maintain local laws dealing with residential real estate
Everybody has their strengths, and if your strength isn't staying on top of laws that change and impact your real estate investments, you could be penalized as a result.
Hint : Property management companies stay up with all the local laws and keep your residential real estate business running smoothly, and aligned with any changing codes or laws.
You don't manage the risk in your investment
Managing the risk in your residential real estate property can get complicated. If you are tired of the details included in risk management, it may be time to think about hiring a property management company.
Tip: Property managers understand what is needed--from insurance and legal assistance to vendors and evictions. Proper protocol is important when a tenant needs to be evicted, and property managers are skilled at how to do it.
If some of the above points resonated with you, it may be time to consider hiring a property management company so as to maximize your real estate investments and relieve one of tedious landlord responsibilities so you can enjoy the passive income benefits of your investments.