Do You Really Need a Property Manager?
Hiring a property manager is a common thing to do, but is it really necessary? The answer to that can depend on several different factors. For someone who manages a small apartment building it may not be necessary, but someone who’s handling a large complex – or more than one complex – probably needs a manager to take care of everything. In addition to the size of the complex you’re handling, you’ll also need to consider the location you’re in, the number of problem tenants you have, and how much maintenance you must do on a continual basis.
A large complex with a high percentage of troublesome tenants, a lot of turnover from the location, and significant maintenance issues would be a good choice for a property manager. A much smaller complex with good tenants, low turnover, and low amounts of maintenance may not need one. Since property managers aren’t free, it makes sense that many landlords would try to avoid them and just handle things themselves. For some landlords that will work perfectly, and for others there will be a point where they realize they need some help to handle things properly.
If you come to the conclusion that you need a property manager, it’s also important to decide who to hire. There are individuals that are in that line of work, and there are also management companies. Most landlords who have larger apartment complexes choose to work with a management company, because it has the ability to handle more complex issues and higher numbers of tenants. Companies are also good about screening tenants, and they can address evictions, collect security deposits, and handle those three-in-the-morning maintenance requests that are both annoying and unavoidable. Many companies also have reasonable rates, so you won’t lose all your profit by hiring a property manager.
These types of management companies are also good choices for landlords who don’t live on the premises or even in the same geographic location. There are plenty of landlords who own multiple apartment buildings in different locations, and even in different states, so they can’t be available to handle everything in person. If you’re going to own a number of properties, even if they’re all in your local area, it’s generally best to have a property manager handle things for you. Otherwise, you may find that you’re spending all of your time at the properties, instead of being able to enjoy the money your investment is bringing you.
With a property manager, you don’t have that problem. You can live anywhere you want and collect a check each month for the rent your tenants pay minus the property manager’s fee and any required maintenance or repairs. You won’t have the worries that come along with managing a property yourself, and tenants will be screened and handled properly and efficiently. That’s a winning situation for everyone, and can be an excellent choice for landlords who want to own properties but need extra help with keeping them all managed and running smoothly.