Owning a rental property can be a great investment, but managing it can be a lot of work. Between finding and screening tenants, dealing with maintenance issues, and handling legal and financial matters, being a landlord can turn into a full-time job.
For some landlords, juggling all these responsibilities can be overwhelming and time-consuming — especially if they manage multiple properties. But, by hiring a good property manager, a lot of the stress can be alleviated. In fact, property management industry statistics mention that 44% of landlords rely on property managers to handle their properties.
Here’s why you may need a professional to help you and the steps you need to know in order to hire the right one.
5 Reasons Why You Should Hire A Property Manager
While it may be tempting to handle everything yourself, there are many advantages to hiring a property manager.
Time Management
Hiring a property manager can be a smart choice for those who are short on time. By delegating many of your responsibilities and tasks to a professional, you can rest easy knowing your investment is in good hands. Property managers handle all the day-to-day operations of your rental property, allowing you to focus on other important priorities.
Maintenance and Repairs
As a landlord, you’re responsible for maintaining your rental property and making repairs when necessary. However, if you’re not a handy person, it can be a major headache. Property managers can take care of all maintenance and repairs for you, ensuring that your property stays in good condition and your tenants are happy.
Legal Compliance
Fair housing laws, building codes, and landlord-tenant laws are just a few of the many legal requirements that landlords have to deal with. A good property manager who is well-versed in these regulations can help you maintain compliance so you can avoid legal issues and potentially costly fines.
Financial Management
Managing the finances of a rental property can be complex, especially if you have more than one property in your portfolio. Property managers are skilled at handling financial matters, including collecting rent, paying bills, and providing detailed financial reports. By handing the torch over to them, you can stay on top of your finances and ensure that your rental properties are profitable.
Tenant Screening
If you work with an experienced property manager, finding tenants for your rental property will be a breeze. They will take care of everything, from sourcing potential tenants and conducting background checks to verifying employment and contacting references. Choosing the right tenant is crucial for establishing a positive and long-term relationship between you and your tenant.
How To Hire A Property Manager
Establishing clear expectations on both sides and following our suggestions will help set you up for a successful partnership.
Determine Your Needs
Before you start searching for a property manager, identify your needs. What kind of property do you have? How many units does it have? What kind of tenants do you have or want to attract? What services do you want your property manager to provide? By answering these questions, you’ll be able to create a clear job description for your property manager and know what qualifications and experience to look for.
Join Your Local Real Estate Association
When you join your local real estate association, you’ll find plenty of other landlords and real estate professionals who have already gone through the same experiences. They will be able to recommend trustworthy property managers who they’ve used and will also be able to answer questions you may have.
Check References and Reviews
After you’ve narrowed down your list of potential property managers, it’s time to check their references and reviews. Reach out to other landlords who have worked with them and check online reviews, paying close attention to any negative ones. Doing so will give you a good idea of how they handle problems and whether they have a good track record of customer service.
Meet with Potential Property Managers
The next step is to schedule meetings with potential property managers. During these meetings, you can ask questions about their experience, qualifications, and services and get a feel for their communication style and professionalism. Make sure to ask about their fees and how they handle tenant screening, rent collection, maintenance, and other tasks you want them to handle.
Test Their Communication Skills
One of the worst experiences when searching for a rental property manager is hiring one that fails to communicate effectively with you. During the hiring process, take note of how quickly they return your calls and respond to your emails.
Pay attention to how they listen to you during conversations or if they frequently interrupt you. If they fail to understand your needs and preferences, how will they be able to cater to your tenants?
Aim to hire a property manager who prioritizes your needs over their own financial gain. If they appear to be more interested in your money than providing top-notch service, keep searching until you find someone that genuinely puts your interests first.
Review the Property Management Agreement
When you extend an offer to a property manager, it’s crucial to review the property management agreement carefully before signing. The agreement should outline the scope of the property manager’s responsibilities, the fee structure, and any other terms and conditions of the agreement. Make sure both you and the property manager understand all the terms before signing and clarify anything that is unclear.
Work with Your Property Manager
Work closely with your property manager to ensure they are meeting your expectations by communicating regularly and providing feedback on their performance. Be available to answer any questions they may have and provide any necessary information. When you work together, you can ensure that your rental property is well-managed and your tenants are happy.
The Takeaway
Hiring a property manager can be a great investment in your rental property. With their help, managing your property can become infinitely easier. By following the steps above, you can find the right property manager for your needs and ensure that your rental is well-maintained and profitable. When you find a property manager that’s a good fit, you can enjoy the benefits of rental property ownership without the stress and hassle of managing it on your own.
I love to hire a property management company through reference way, because in this way we can get advantages of experience of the person, who was hired a manager for his property. Thanks for covering the most important points such as “Why hiring? and How to hire?”.
Thank you; glad you found it informative, Camden!