Hiring a Property Manager, But Should You?
Published on October 10, 2023
Have you recently acquired a lovely house as your first rental property investment? Congratulations on taking that first step! However, engaging in rental property investment entails more than just the purchase. Now, let’s delve into what comes next after acquiring an investment property: Who will oversee the rental aspect of your rental investment? Should you consider hiring a property manager, or is managing it yourself a viable option?
What is a Property Manager?
It is basically a professional or a company responsible for the day-to-day operations of a real estate investment property. Their primary goal is to efficiently and effectively oversee and maintain a real estate property on behalf of the property owner, ensuring that it generates income and retains or increases its value over time. Property managers typically handle rental property marketing, OTA reservation system, booking process, daily rental services and concierge, property maintenance and repairs, financial reporting, and overall property optimization.
Pros: Why It’s Worth Hiring?
Expertise and Experience
Property managers bring years of experience and expertise to the table. They understand the intricacies of the real estate market, rental property marketing, OTA reservation system, booking process, daily rental services and concierge, financial reporting, etc which are very essential for running your rental investment and can help you to avoid costly mistakes or issues.
Time and Convenience
Managing a property can be time-consuming, especially if you have multiple properties or a full-time job. Property managers handle all aspects of property management which could free up your time for other pursuits.
Maintenance and Repairs
Property management companies have a network of reliable contractors and service providers. They can quickly address maintenance issues and conduct repairs, preserving the property’s condition.
Last but not least, property management includes a dedicated marketing team responsible for capturing high-quality photos and videos, executing marketing campaigns, and employing various strategies to enhance your property’s visual appeal and reach a specific audience of potential renters, all with the ultimate goal of increasing rental income.
Cons: Hiring a Property Manager
One of the most significant drawbacks of hiring a property management company is the cost. Property managers typically charge a percentage of the rental income, which can eat into your profits. However, many property owners find that the benefits outweigh the costs.
When you hire a property manager, you relinquish some control over your property. While this can be beneficial in many cases, some property owners prefer to make all decisions themselves.
Finding the Right Manager
Not all property management companies are created equal. Finding a reliable, trustworthy property manager can be a challenging task. It’s crucial to research and interview potential candidates thoroughly.
Limited Personal Touch
Property managers handle multiple properties, so they may not provide the personal touch you desire with your renters. If you value a close landlord-renters relationship, managing the property yourself may be more appealing.
The decision to hire a property management company or manage your rental property yourself ultimately depends on your individual circumstances, preferences, and resources. While property management comes with a cost, the peace of mind, time saved, and professional expertise provided by property managers can be well worth it, particularly if you own multiple properties or have a busy schedule. However, if you’re hands-on, enjoy direct renter interactions, and have the time and knowledge to manage your properties effectively, self-management may be a viable option. Ultimately, your choice should align with your investment goals and personal preferences.