It is not necessary to hire a property manager for all rental properties. However, they can be very useful for the right property and landlord. The following nine questions will assist you in determining if hiring a property manager is the right choice for you.
What is the distance between your rental and your home?
The farther away you are from your investment property, the more challenging it will be to manage it. The longer your rental property is away from your home, the more difficult it would be to find tenants, resolve maintenance issues, and ensure rent is collected on time.
You’ll need to factor in the time it takes you to get to the property, as well as the cost to get there. Oftentimes in these situations, it is wise to hire a property manager, as it can save you both money and time.
What is your total number of units?
Most of the landlords, using property management in Atlanta or property management in Las Vegas own more units and their responsibilities increase. As their tenant count grows, they will encounter more maintenance issues, complaints, and vacancies.
Additionally, if your units are spread across multiple properties, you’ll have to manage the cash flow of each one separately as well as physically commute between properties to handle issues.
Have you managed property before?
In case you’re interested in real estate, but don’t know anything about managing properties, you may want to hire a property manager. Learning as you go can be very expensive.
If you decide hiring a property manager is the right move for you, you should also consider hiring a good one since a bad one can ruin your investment. The reason why thorough research and screening of the candidate is so important.
What is the Cost of Hiring a Property Manager?
Investing in a property manager begins with an evaluation of your finances. Property managers typically charge a fee between 4% and 10% of the property’s gross monthly income. A single-family rental property in Las Vegas can expect to pay up to 10% of the rental fee. A multi-family property can charge between 4% to 7%.
An individual with a gross income of $1,000 might pay a management fee of 10%, or $100 for his or her single-family home, while a 5% fee would only come to $50.
When applied to this scenario, paying an out-of-the-pocket fee of $50 a month to a property manager isn’t a good enough incentive to lure quality managers. However, a 5% management fee on a property earning $20,000 a month would be $1,000, which would make it easy for an experienced professional to attract the appropriate clientele.
Does your schedule allow you to manage your property?
When you invest in property and have a full-time job, you might not have the time or energy to give your property the attention it deserves. Your investment’s success may depend on hiring a good property manager.
Managing a property is time-consuming. If you feel that your time could be spent making more money at your traditional job or finding other investments, you might benefit from hiring an outside manager.
Can You Give Up Control?
A property manager is responsible for everything from collecting rent to submitting taxes for the property. How comfortable are you with allowing someone else to have such control? If they qualify and have experience and a piece of paper to prove it, will they have as much passion for your investment?