6 Reasons You Need a Property ManagerJun 01, 2022
Managing rental properties can be quite time-consuming for the owner. If a property owner works a full-time job or has a family, it can be very challenging to handle the demands of both, plus the duties and problems that come with renting properties. Routine inspections of the rental property, repairs, or dealing with tenant problems can be time-consuming, devouring huge amounts of time from regular job hours or from valuable family time. This is especially true if the property owner has to manage more than one property or a multi-unit rental.
If the property owner’s time is limited or the property is located in a far away town or state, it would be a wise choice to hire a property manager. For a monthly fee, a property manager will take care of such tasks as finding suitable tenants and scheduling maintenance of the rental unit. They will also handle emergency repairs, collecting rent, and making sure the unit is free of damage when a tenant moves out.
Some property owners do not relish the work of operating rental properties. They may not be particularly skilled in advertising to find long-term tenants, solving disputes, or finding and scheduling reliable maintenance people for repairs. In that case, a property manager is a good option.
Using their knowledge of the area, a property manager can assist the owner in determining a competitive price of rent for the rental unit. They also screen the interested applicants, collect deposits, run the appropriate background and credit checks, as well as verify prospective tenant’s employment history.
Sometimes a property owner underestimates the complexity of challenges that can arise. If there are problems with tenants, such as nonpayment, destruction of the property, or complaints from the surrounding neighbors, the property manager will handle these issues. When it comes to tenant evictions, these professionals can advise the property owner, but they do not handle the situation themselves.
When the owner’s time is valuable, the cost of a property manager can be seen as an investment. The cost of a property manager is around 6-10 percent of the monthly rent. However, the more maintenance a property requires, the more expensive it will be for a professional to manage it. For instance, a swimming pool on the property will increase the monthly fee. Also, some property managers charge extra fees for other services, such as cleaning up a unit after a tenant has moved out. All fees paid to a property manager are tax deductible.
Start the search for a trustworthy property manager by asking friends and colleagues for recommendations. Then, make sure to thoroughly investigate a property manager before hiring them. Find out how many years experience they have and what exactly are their qualifications. Be aware that some states require a property manager to have a real estate license. You should also have the property manger send you a copy of their liability insurance and be sure that includes thinks like worker’s compensation insurance. Also, make sure all terms and agreements are in writing. Usually, a property manager will use a standard legal contract that is signed by both parties.
A property owner can also hire a property manager for a short term. In the case of an emergency or even an extended vacation, a property manager will handle the responsibilities of the owner’s rental properties.
“Remember, wealth has nothing to do with money, success has everything to do with failure, and life is as simple as you make it.” – John Dessauer
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