Renting out a residential property can be an excellent way to bring in additional income. At the same time, the responsibilities that come along with being a landlord can be taxing. Not only will you need to put time and money into maintaining the property, but you’ll also have to handle finding/screening tenants, filling vacancies, collecting rent, and everything in between.
If you’re feeling a little overwhelmed by all this responsibility, it may be time to consider hiring a property manager for your rental home, apartment building, or other residence.
What Does A Property Manager Do?
Specifically, a property manager is designed to handle all the responsibilities of a landlord—and then some. This includes dealing with your current tenants by responding to maintenance requests, collecting rent, and renewing leases. Responsibilities of a property manager may also include maintaining your property, collecting your security deposit, making repairs, and handling things like landscaping and exterior painting. Many property managers also handle evictions (when necessary) and marketing your property when vacancies become available, as well as screening applications for potential new clients.
Specific responsibilities of a property manager can vary from one to the next, and many offer customizable packages to help suit your specific needs and budget. Ultimately, though, the purpose of a property manager is to take most (or all) of the responsibility of managing your rental off your plate.
Benefits Of Hiring A Property Manager
When deciding whether a property manager is right for you, consider a few of the main benefits of hiring one.
Secure Higher Quality Tenants
Finding quality tenants who will reliably pay their rent on time and stick around can be one of your biggest challenges as a landlord. Working with a property manager can take this burden off your plate; these professionals know how to market your property to bring in the highest quality tenants so you can enjoy less turnover and maximize your profits.
Cut Back On Vacancies
When a vacancy does arise in one of your rental units, a property manager will stay on top of the game. He or she will see when a lease is due to be renewed and if the tenant doesn’t plan to renew, will begin working on filling the vacancy before it even opens up. This helps to cut down on lost profits and other costs you can otherwise incur when you have a rental unit sitting empty for any period of time.
Avoid Potential Legal Issues
When a tenant fails to pay rent and you have no choice but to follow through with an eviction, having an experienced property manager can make all the difference. He or she will know the necessary legal processes to follow in order to carry out an eviction properly while saving you the hassle and stress of dealing with it on your own.
Enjoy Possible Tax Savings
Often times, property managers can also work as consultants of sorts and help you maximize your deductions as a landlord come tax time. Your property manager may be familiar with specific write-offs you can make and credits you can take advantage of to save the most possible money on your taxes.
Free Up Valuable Time
If you’ve been working as full-time landlord at any of your rental properties, then you know just how time-consuming this can be.
If you have another job/career, have a family at home, or have any other major responsibilities in your life, you may simply feel like there aren’t enough hours in the day to handle it all. When you hire a property manager, you can take most (if not all) of your landlord responsibilities off your plate, freeing up time for more important things in your life.
Cut Down On Maintenance/Repair Costs
Costs related to maintaining your property and making repairs can be high, especially if you’re finding yourself seeking out individual contractors for separate jobs. Most property managers have their own team of professionals that they turn to time and time again for this type of work, and they receive a discount that they can pass onto you. As a result, you may actually find that your maintenance costs are much lower with a property manager.
Potential Drawbacks Of Hiring A Property Manager
While hiring a property manager certainly has a lot of benefits, there are also some potential drawbacks to consider before you make a decision.
Requires Relinquishment Of Control
One of the biggest challenges some landlords will have with hiring a property manager is the degree of control that it requires you to relinquish. Rather than having the ultimate say in the day-to-day operations of your rental(s), an experienced property manager will be making a lot of these decisions on your behalf. This can be a hard pill for some people to swallow, so working with a property manager may not always be the best choice if you’re what some would describe as a “control freak!”
Could Be Costly
Another challenge to consider when it comes to hiring a property manager is the cost. This is one of the most difficult things for some people to get past. Property managers are full-time workers, so they don’t come cheap. At the same time, it’s important to consider the many ways in which hiring a property manager saves you time and money. From the savings on general maintenance and repairs to the higher quality tenants and reduced vacancy times, property managers can really help you maximize your profits.
And of course, your time is also valuable. When you hire a property manager, you could be freeing up literally hundreds of hours a month of your time. Can you put a price tag on that?
Signs You Should Hire A Property Manager
Still not sure whether a property manager is right for you? There are a few “signs” that could indicate it’s time to hire a professional to help manage your property.
You Live Far From Your Rental Property
Managing a rental property is difficult enough when you live close by, but when you don’t live close enough to be there often, things get a lot more challenging for both you and your tenants. If you live far enough from your property that you’re not able to visit daily, then you’d probably benefit from having a property manager.
You Own A Large Number of Units
Maintaining a single rental unit can be difficult enough; things get exponentially more difficult when you own and manage more than one unit. The larger the property and the more units you have, the more tenants you have to deal with as well. Having a property manager may pay off here.
You Don’t Enjoy Dealing With Your Tenants
Speaking of tenants, they’re not always the most pleasant to deal with. From angry tenants demanding repairs to tenants who miss their rental payments, not all landlords enjoy this aspect of the job. This is where hiring a property manager can make your life easier and less stressful.
You Don’t Have Much Experience In Managing A Rental
Sometimes, you come into owning a rental property unintentionally. This can happen when you inherit a property, for example. You may not have the experience in managing a rental property or the desire to learn. If this sounds familiar to you, then it may be time to either consider hiring a property manager or even selling the property altogether.
Other Services To Consider For Your Rental
A property manager can generally take care of many of the services you’ll need as a landlord, from maintenance contractors to landscaping professionals. One additional service you won’t want to overlook, however, is that of professional cleaning for your rental units.
With a professional home cleaning service, you can make sure your rental units are sparkling clean before your new tenants move in or when you’re showing your properties to prospective tenants. This saves you the hassle of cleaning the property yourself. Many professional cleaning companies offer specific move-in/move-out cleaning options that include everything from mopping floors to dusting and cleaning appliances so you can enjoy added confidence that your tenants will be wowed when they move in.
And since cleaning generally isn’t a service included by a property manager, this is something worth looking into as a separate service to further save you time and hassle.
As you can see, there are so many benefits (and a few potential drawbacks) of hiring a property manager when you own a residential rental property of any kind. Now that you have a better understanding of all that working with a property manager entails, you can make an informed decision regarding whether this is right for you.
If you’re interested in adding professional cleaning services to your rental property, Maid Sailors is here to help. We offer thorough move-in/move-out services to make your life easier. Contact us today to find out more about our cleaning services, or use our convenient online form to schedule your next cleaning service in 60 seconds or less!