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So You Want to be a Landlord? 10 Reasons to hire a property manager...

So you want to be a landlord? Protect your investment and hire a property manager.

 

See the other posts in this series:

1. So You Want to be a Landlord? Pick a Niche...

2. So You Want to be a Landlord? Analyzing Potential Properties...

3. So You Want to be a Landlord? Finance It...

4. So You Want to be a Landlord? Make it Stand Out...

 

So now you have your rental property...you've made it stand out...and now you're ready to rent it out. I typically recommend to investors with only one or two properties to manage their own properties for a while. I do think hiring a property manager makes sense but I think property owners need to understand what they are paying for.

So you want to be a landlord? 10 Reasons to Hire a Property Manager...

1. Rent Collection: Experienced landlords will tell you...collecting rent is the hardest part of owning investment property. PM's have the systems in place to make sure you get your rent on time...

2. Rent Maximization: Many new property managers underprice their properties. Professional managers know the area and how to price your property for maximum profit.

3. Finding the Best Tenants: Professional managers know how to conduct background searches, criminal reports, eviction reports and overall tenant screening. Inexperienced property managers often make expensive mistakes in the screening process.

4. Top Notch Marketing: Property managers know which mediums work for your target market. Often times they have deals with newspapers, websites, etc that can save you huge on marketing money.

5. Legal Expertise: It's way to easy to get in a lot of trouble because you simply didn't know or didn't understand a law. A good property manager knows the laws and how to properly deal with tenants.

6. Property Maintenance: It's the manager's job to make sure you are alerted whenever maintenance issues arise. They should also be doing periodic inspections to make sure your investment is protected.

7. Record Keeping: Record keeping is one of THE most important parts of property management whether its a professional or you do it yourself. A professional property manager will make your tenant and financial records are in order and ready for you at tax time.

8. No Midnight Calls: If you ever hear a property owner complain- its usually about the 7am Saturday overflowing toilet calls.

9. Cost Effective: Most property managers charge from 6-10% of monthly rents. For $1000 rental property that's only $60-100 a month. That's $2-3 per day.

10. Quality of Life: This is the primary reason I chose to hire a professional manager to mange my properties. By handing over the daily management, it frees me up to do other things.

 

 

 

Mike Hogan

Associate Broker

RE/MAX Commonwealth

(804)503-0811

RVARealtor1@gmail.com

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Comment balloon 10 commentsMike Hogan • August 24 2009 10:14PM

Comments

Agreed-- but choose the manager with great care! Most are good, some are fantastic, and others when you get to know them you would not turn a dog house over to. Call every one you can find, interview those that sound interesting and do not pick simply on commission rates.

Posted by John Rakoci, North Myrtle Beach Coastal Carolinas (Eagle Realty) almost 8 years ago

Indeed - a property manager is the best way to go -- good post.

Posted by Bob & Carolin Benjamin, East Phoenix Arizona Homes (Benjamin Realty LLC) almost 8 years ago

John thats GREAT input. There are definitely some that are just horrible. But if you ask around, typically in an area like mine 3-4 names continue to pop-up.

Posted by Mike Hogan, MBA (The Hogan Group at Keller Williams Realty) almost 8 years ago

In these real estate economic times, there are many RE agents who have gone into property management by default - property owners who are leaving the area and want to rent their home should use their listing agent as a resource to find a GOOD PROPERTY MANAGER.  Not an associate real estate agent who thinks they can do rental management by downloading a lease form and passing over the keys.

Posted by Wallace S. Gibson, CPM, LandlordWhisperer (Gibson Management Group, Ltd.) almost 8 years ago

Wallace- I would agree. I see it all the time- REALTORS who think they can manage properties but have no clue what it takes. I've managed my owne and I've hired a mnager- but I dont manage for anyone else. Im pretty good at it...but doing it right for others means me trying to do 3 jobs at once and something would have to give. You cant do everything perfect if youre focusing on multiple jobs (i.e prop manager, realtor, renovation company). Hand it over to a professional company that does just property management. Their focus is 100% on managing rental properties. Great point- thanks for the comment.

Posted by Mike Hogan, MBA (The Hogan Group at Keller Williams Realty) almost 8 years ago

Mike, from my own experience, I can only agree with this!  I gladly pay a property manager a fee because I know he or she will save me in the long run by properly screening tenants or not having to make expensive repairs later on.

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) almost 8 years ago

Silvia- Soooo true. Im pretty good but I cant devote the time a property manager can. Thanks for the comment.

Posted by Mike Hogan, MBA (The Hogan Group at Keller Williams Realty) almost 8 years ago

Excellent list - this is being featured in the Property Management group

Posted by Diane Rice, SFR, SRES, CNC (Diane Rice, Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL) almost 8 years ago

Thanks so much for the feature! 

Posted by Mike Hogan, MBA (The Hogan Group at Keller Williams Realty) almost 8 years ago

Nice compilation fo the benefits of hiring a great property manager!

Posted by Renée Burrows, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 8 years ago

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