11 Questions to Determine If You Need a Property Management FirmJun 23, 2022
- How far do you live from your rental property, and how frequently can you visit the property regularly?
The further you live from your property, the more time you need to spend going back and forth for your rental operations—maintenance, inspections, collections, etc. So, consider if it’s realistic to make regular visits when you’re not close to your rental property. Otherwise, seek assistance.
- How do you deal with stress? Do you consider yourself to be a tolerant person?
Property management's ups and downs come with many unforeseen problems and stress that not everyone can handle. You may need a property manager if that’s the case with you.
- Are you currently overwhelmed with your property(s)?
Managing rental properties can become quickly overwhelming, even for the most experienced investors. There’s always something going on that requires attention—not only in your rental properties but also in life. Hiring a property manager can help regain control and stability.
- How many rental properties or units do you have?
With a larger number of rental properties comes a larger number of management challenges. Investors with large portfolios can take advantage of a property manager's efficiencies. Size can also constrain investors' ability to consider purchasing new properties if they're already maxed out managing their current holdings.
- How much experience do you have with maintenance and repairs?
A property management company has the connections to maintenance and repair and can hire ethical, insured people who do quality work.
- How quickly are you able to get your unit rented?
Advertising, fielding calls, and showing your unit takes a lot of time that a property manager can take off your hands.
- Can you handle the accounting and record-keeping for your property?
A property management company can help with financial aspects, from profit and loss statements to tax deductions. This can significantly burden owners, especially those with more extensive portfolios.
- Are you willing to be on call 24/7/365?
An emergency at your property cannot be ignored, no matter where you are and what you might be doing. This might mean being called in at 2 am or during a special event. Property managers can take this burden off your shoulders.
- Are you willing to confront tenants about late payments and evict them from the property if necessary?
Hiring a property manager for this task can keep the owner from feeling like the bad guy. Let the property manager do the hard confrontations like dealing with late payments.
- How well do you understand the laws governing land lording?
It’s important to be familiar with contracts and run the property per the law to prevent lawsuits and liabilities. And this is something a property manager can do.
- From a financial standpoint, is managing your property the best use of your time?
Ultimately, your decision to hire or not hire a management company should hinge on whether or not 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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