10 Signs You May Need a Property Manager
You know you need a property mananger when…
by Trevor Henson
A friend of mine recently bought an apartment building here in Los Angeles and asked me “How do I know when/if I need property manager?” To which I told him there were several reasons to hire – or at least consult with – a management company.
I then proceeded to rattled off my top ten list of “you know you need a property manager when:
1) If you find yourself taking calls at 1 am to fix a broken water pipe in your building – you might need a property manager.
2) If you don’t remember the last time that really nice guy in unit #108 paid rent – then maybe you need a property manager.
3) If most of your residents have pets and you have never heard of a Pet Agreement or Pet Deposit – you might want to hire a property management company.
4) If you just realized that the residents in unit #207 moved out TWO months ago – it might be time for a property manager to take care of your building.
5) If you find yourself spending more time at your apartment building coordinating maintenance than you do with your wife, kids or friends – you should call a property management company.
6) If you think your apartment building MIGHT be under rent control, but you are not sure what that means – you should call a property management company (or your lawyer) immediately.
7) If you do not know what your Net Operating Income (NOI) is or how to find out – it may be time for a property manager.
8) If a resident moves out and it takes your handy man 2 weeks to touch up paint and clean the carpet ” you should consider property a property management service.
9) If you are not sure how much rent to charge for your newly vacant apartment or single family home – perhaps you should think about a property manager.
10) If you moving out of the city, state or country and plan on keeping your investment property – you DEFINITELY should speak with a property management company.
The point that I was attempting to drive home to my now landlord-of-a-friend was that there is quite a bit more to property management than simply collecting checks and repairing toilets. An investment property is a living, breathing entity that requires a significant amount of time and attention. If my friend was not ready, willing and/or able to take on the responsibility, then there was most certainly a property management company in his area that would be more than happy to help him out.
Trevor Henson is a managing partner of First Light Property Management, a Los Angeles based multi-family property management firm. This blog was originally published on Multifamily Insiders.