Investing in real estate isn’t something anyone takes lightly, so why wouldn’t they protect that investment by hiring a company to manage the property? Here are 8 important reasons to hire a property manager and therefore, have a little insurance on your investment.
1. They know what you should charge for rent.
Different conditions effect what you should charge for rent, but figuring it out on your own can be a challenge. The same unit in San Fransisco will have a different price tag when listed in rural Knoxville.
2. You won’t have to worry about collections and deposits.
Easily one of the most difficult aspects of being a do-it-yourself landlord is collecting rent every month. You hear all kinds of excuses for why people can’t pay and helpless pleas for mercy. It’s a very stressful position to be in, but management companies take that burden away from you.
3. You know your tenants will be screened properly every time.
Tenant damage, either through abuse and misuse of your property or by failing to pay rent, can add up quickly. If your renters aren’t screened, your investment is highly vulnerable. Let a management company filter high-risk tenants for you.
4. Maintenance isn’t something you’ll have to worry about 24/7.
What good is an investment if it takes all your time and energy, leaving you with nothing to enjoy out of life? There’s always something in need of repair or replacement, but with a professional management team, it’s no longer your worry.
5. The property or rental units will be marketed appropriately.
When a tenant leaves, you need to fill their unit up ASAP. Otherwise, you’re bleeding money. Don’t stress over running ads online, in local print and the hassle of taking all those calls: It’s someone else’s job if you’ve hired the right property management company.
6. A management company allows you to invest long-distance.
If you’re on the East coast, but salivating over the current Seattle real estate market, don’t think you have to relocate to invest. A dependable management company will enable you to live a long distance from your investment, but still take care of it.
7. If you ever want to sell, you’re in a good position to do so.
Buyers don’t typically want property that hasn’t been cared for, with the possible exception of house flippers. A serious buyer will be impressed when you tell them the property has been professionally maintained and therefore, more interested in making a deal.
8. You’ll have more free time on your hand to oversee other investments.
With other people managing the property you already own, you’re free to scout new options in investing. In addition, you should have enough time on your hands to put together an investment portfolio that really works for you, no matter where you are. After all, if the money you make isn’t making more money for you, you’re not maximizing your true potential as an investor.
There are no guarantees your real estate investment will offer you a major return for your money, but one thing is certain: Hiring a property management company will protect your investment and make life a lot easier for you.