Should I Hire a Property Manager?
Updated: Oct 23, 2022
If you own an investment property or several rentals, you’ve probably figured out that there can be a lot of time spent managing the property. From collecting rent & finding tenants to making sure the property stays in good condition, there’s always something to do each month. Maybe this is becoming too cumbersome, or maybe you want to grow your portfolio of properties. Maybe it’s time to consider hiring a property manager!
What is a Property Manager?
A property manager is an individual or company that you hire to take care of your property. They take care of: marketing, rental collection, repair/maintenance requests, and any legal matters that may arise. In hiring a property manager you will be looking at a fee of between 7% and 10% of the monthly rent.
How to know if I need a Property Manager
There are a few aspects that may bring you to the realization that you need a property manager:
If you have multiple properties, it may prove difficult to keep everything organized and be constantly available for all properties.
You may need a manager for the simple reason that managing a property can be stressful and time-consuming, leaving you feeling overwhelmed.
If you do not live near your rental property, hiring a manager that is in the area will allow you peace of mind that everything is being taken care of and you are kept in the loop.
If you are very interested in owning the property, but not having to do the hands-on managing of the property.
Finding a Property Manager
In researching property management companies, it is important to remember that many will not be interested in managing a single property. Having two or more properties will up your chance of being taken on by a management company. For singles, you may need to seek out an independent individual.
There are a few ways to go about finding a property management company that will fit your needs. Start with asking friends and family who are also in the rental property game. From there you will be looking at reviews and comparing company fees. The more thorough you are in attaining and comparing company information, the better your chances are of finding the best company for you.
Creating an internal Property Management Team
Once you reach 5-10 rental properties, you really only have 2 options: 1) hiring a Property Management Company or 2) Creating an Internal Property Management Team. At this point, you probably already have an administrator helping you manage the calls, emails, & bills. What else should you consider adding to your internal management systems? Well for starters, purchasing a subscription to Property Management Software & hiring a lead maintenance person is usually the next step. You’ll also want to work on creating partnerships with various trade companies to assist with larger items such as water leaks, roof damages, HVAC system issues, etc. Another key component of owning an investment property is finding the people to rent from you or marketing your properties! This will at least require some time investment (maybe money too) & usually is part of the Manager’s role but you may have enough rentals to need to hire a separate person. For more information on managing rental properties, you may want to review our prior blogs.
Additional Insights for Rental Property Management
Contact Us for Investment Property Guidance
Managing rental properties can be a daunting task, especially if you own several. Hiring a Property Manager can help to reduce the time, money, & resources needed to complete the necessary tasks to keep your rentals earning you income. For guidance through the entire Investment Property process, feel free to reach out with any questions & we will be happy to help!
If you’re looking to get into the Investment Real Estate game, Grimm Realty Group can help you navigate the buying process & guide you throughout your ownership days. If you’re looking to sell your rentals, knowing what the property is currently worth & having a list of recommended upgrades can help prepare you for listing in the future. Give us a Call with any questions or Schedule a Market Analysis today!
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Should I Hire a Property Manager? Sources:
Zillow: Hire a Property Manager or Do It Yourself?
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